WATERWORKS INVESTIGATION COMMITTEE’S REPORT.

New Zealand Times, Volume XXXIII, Issue 5307, 29 March 1878, Page 6

WATERWORKS INVESTIGATION COMMITTEE’S REPORT.

The following report was read at the meeting of the City Council on March 7. The Special Committee appointed to inquire into the Waterworks Extension Contract have the honor to report as follows : They find that a contract was entered into by Mr. Joseph Saunders to construct the Wellington Waterworks for the sum of £17,195, in terms of the specifications signed by him. They find from Mr. Blackett’s report that savings were effected to the extent of £2364 Os. 6d., thus reducing the amount of the contract to £14,830 19s. 6d. To this there has to be added the sum of £4,851 19s. for extras (see Mr, Blackett’s report of the 30th January, 1878, Appendix C.), making the total amount of the contract up to £19,682 ISs. 6d., liable to be reduced by any further savings which may be effected, or increased by additions for extras.

They find that up to the 17th November, 1877, several mouths before the contract was completed, the sum of £15,000 had been paid to the contractor, and that a certificate was i issued authorising him to receive another ! £IOOO, or £16,000 in all. They find that on the 7th December, 1877, a cheque for £2970 was illegally paid to the contractor, being a payment on account of a claim for extras amounting to £3969 175., sent in by the contractor. This payment was made without the sanction or the approval of the Council.

They find that the said sum of £2970, so illegally paid to the contractor, was refunded by Mr. Saunders at soon as he became aware that the amount ought not to have been paid to him. They find that the balance due to Mr. Sauuders, when all the work has been completed and passed, will be £4682 195., less 5 per cent., on the whole contract—say £984 2s. lid., liable to be increased or diminished by savings or extras.

They find that the sum of £984 2s. lid., as before mentioned, will be due to the contractor, three mouths after the contract has been completed, provided the works are in good order at that date.

They find that the Engineer in charge (Mr. N. Marchant) has not given to,his duties that close aud vigilant attention which they required, and that he has, in the issue of certain certificates to the contractor, displayed an amount of carelessness and indifference to the interests of the .Corporation, that renders his further continuance in the service unadvisable. They find that the late Town Clerk (Mr. Hester) was also exceedingly lax in his attention to his duties in this matter, his ignorance of the terms of the contract, &c. (matters on which he ought to have been acquainted), having in conjunction with the Engineer’s carelessness, led to the contractor (Mr. Saunders) receiving a larger per centage of moneys during the construction of the works than he was entitled to under the contract.

They find that the action of the late Mayor (Mr. Hutchison) in signing the cheque for £2970 for extras, without examining closely into the matter, was unjustifiable, as he ought to have held the payment of the certificate over till the next meeting of the Council, or called a special meeting to deal with it.

The committee exonerates Councillor Macdonald from blame for signing the cheque for £2970, as it was done in the ordinary course of business and in compliance with the practice, improperly sanctioned by the Council. The evidence discloses the fact that before tenders were sent in some of the tenderers were misled by the Engineer on: many important matters connected with the specifications, in consequence of which the tenders, in two cases, were £6OOO ■ higher than they would otherwise have been. The committee call attention to the matter, because the effect of misleading tenderers in this way is to discourage them from, tendering for other Corporation Works, and diminished competition must necessarily result in the Corporation having to pay higher prices for its works. . The committee recommend that in future it should form part of the duty of the Town Clerk to see that the' conditions of all Corporation contracts are strictly observed, and would also recommend that the provisions of clause 107 of the Municipal Corporations Act, 1876, should in future be strictly adhered to. The committee are of opinion that great credit is due to the Consulting Engineer, John Blackett, Esq., for the trouble he has taken in supervising the work, and keeping down the expenses.

The cost of conducting this enquiry amounts to £145 17s. Sd., as per schedule annexed, and the committee request the Council to order an early settlement of these accounts. Geo. Hunter, Chairman.- . Wellington, 7th March, 1878.