Councillor Bill Guest

CEO Jack McKerchar

Kaipara District Councillor and declared mayoral candidate, Bill Guest, has called for the suspension of council CEO Jack McKerchar, for breaching his fiduciary duty by failing to give council full information about summary judgement proceedings involving “approximately $1 million” against it in the High Court.

In a letter to outgoing mayor, Neil Tiller, Mr Guest says Mr McKerchar has failed to disclose to the council monies sought by contractors Donovan Drainage & Earthmoving Limited in a High Court action in Whangarei.

Mr Guest has made a formal request asking for “a full investigation of the actions of the Chief Executive Officer, Mr Jack McKerchar.

“I hold the view that his actions could be a serious breach of his contract and if proven to have substance, this would constitute a serious misconduct matter being brought against him.”

He asked council to consider “that where an employer has reason to believe the chief executive has been guilty of serious misconduct, it may suspend (his) employment for a period not exceeding one month, to permit a full investigation of the matter to be completed.”

Mr Guest said in his letter that Mr McKerchar had “failed to disclose the sums of monies that have been sought by contractors Donovan Drainage & Earthmoving Limited in their Summary Judgement proceedings.

“He only made verbal disclosure after severe questioning by me that the sums of compensation being sought by Donovans equated to approximately $1 million plus costs.”

“The chief executive is required under his contract and job description policy and other council policies to provide full disclosure to the Kaipara District Council on all financial claims being made against the council and of any risk that the council may be facing through legal action being brought against the council. He has failed to do this.

“The chief executive also failed to provide full disclosure of the legal proceedings lodged against the council in December 2009 by a Mangawhai developer for a substantial amount of money.

“I ask that my complaint against the chief executive be actioned immediately and that this issue be dealt with at a special meeting of council.

Mr Tiller confirmed that the Kaipara District Council is the subject of legal action in the High Court.

“I do not know the full details of this as I have not seen any documentation. However, I have asked Jack (McKerchar) for more information and we expect this by about the third of August. Until then I can’t really comment.”