Who is responsible for latest Wellington Water fiasco?

Tuesday, 30 July 2024

Who is responsible for the latest Wellington Water fiasco and who should be held accountable are just two of many questions following a scathing independent review of the council-owned water entity.

Although initial media attention focused on the future of chief executive Tonia Haskell, there are also questions being asked about the board of directors headed by Nick Leggett.

Wellington Water figures show one person — likely to be Haskell — received more than $300,000 in remuneration last financial year, while board chair Leggett received $60,000 in fees.

Leggett agreed the board was ultimately responsible for the problems identified in the report, which found a dysfunctional culture at Wellington Water.

“That is why we have taken responsibility by having an independent review and then taking action to implement that review publicly.”

One of the issues identified in the report was that the board was not getting the information it needed to make informed decisions, despite seeking assurances it was being given the information needed to fulfil its governance role.

It is the role of the board to hold Wellington Water to account.

Hutt City Mayor Campbell said the structure of water management across the region was part of the problem.

The councils fund Wellington Water and a board of directors sits above it. There is also the Wellington Water Committee which has representatives from the councils and mana whenua.

“The structure as a whole is not fit for purpose,” he said.

Barry said Wellington Water, the board and the water committee must now all work together to fix the problems.

Although Wellington Water is set to be replaced with a new structure within 12 to 18 months, Barry said there was too much at stake not to rectify the problems highlighted in the report.

Leggett said the board could not change the current structure but was focused on fixing the problems identified in the report.

“The (Wellington Water) model is approaching the end of its life and everybody agrees with that and that is why we are going to get a new water entity in the next couple of years.”

Kirsten Patterson, chief executive of the Institute of Directors, said she could not comment on the Wellington Water situation, but when major problems are identified in an organisation the directors can play a key role in getting it back on track.

“The core role of a board is to provide governance and oversight, and it is absolutely essential that they are getting the appropriate information.”

Board papers belong to the board and she said if board members are not confident about the information they are being supplied, then they must act.

That could include making sure the organisation employs additional expertise, and creating a committee that has direct involvement with the day to day running of the organisation.

Generally, chief executives are appointed by the board and if the problems relate to the chief executive, the board has to ensure it has the right key performance indicators in place and is providing appropriate oversight.

“Ultimately the board does have a role, calling the chief executive to account.”

Barry said part of the problem with Wellington Water was who is responsible for it. A glance at Wellington Water’s homepage points to the confusion.

“Wellington Water is governed by a Board of Directors. The Board and our organisation receive overall leadership and direction from the Wellington Water Committee.

“The Wellington Water Committee is made up of representatives from our shareholding councils and mana whenua.“

The terms of reference for the Water Committee state: “The Wellington Water Committee is established to provide governance and leadership across issues which are related to the planning, delivery and management of water services to communities serviced by Wellington Water Limited.“

It also states their role is to ”provide governance oversight of Wellington Water Limited“.

Upper Hutt mayor Wayne Guppy, a long standing critic of Wellington Water, said confusion over governance “is not an excuse for incompetence” and the problems must be fixed.

He welcomed the report and said it had confirmed what he and Wellington mayor Tory Whanau had been saying for a long time.

He would not comment on whether anyone in Wellington Water should be held accountable as that was ultimately a decision for the directors to make.

A spokesperson for Wellington Water said it did not want to make any comment.