Item 7

30 Apr

OK then, Cllr Pottinger has submitted a report which seems to suggest that Holdco and/or its Directors are saying ‘%#$k you’.  Here is my laymans/simpletons understanding of it

ICC approved Holdco buying more shares in Otagonet ($9.5M worth) under Option 2

Option 3 included permission to invest in smart meters and alternative energy

Option 3 was denied and option 2 was approved

Companies Office website is down as I type this but yesterday I noted (on companies.govt.nz) that Electricity Invercargill Ltd  through its subsidiary setup altered its shareholding in Otagonet on 8 April 2015.  The new joint venture company Southern Generation was started on the same date.

Simple answer as to what happened looks to be that Holdco went ahead and bought the shares they were allowed to.  Holdco then ‘sold’ them to The Power Company Ltd and used the ‘money’ to invest in alternative energy, namely the Flat Hill Wind Farm.

Pottinger’s report looks like a slam dunk in relation to giving the consultation process the finger but only the elected members can clarify what went on in this meeting

19 MarchLess than three weeks later the ‘fiddle’ is done but whose to say the shareholder (ICC) didn’t overrule the public consultation in public excluded and approve the shares to be sold for the wind farm investment?

No matter what, the end result is that the public consultation was akin to a con (a long con).  The question for me is; who are the conmen, the directors or the councillors?

 

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One Response to “Item 7”

  1. Realist April 30, 2015 at 8:56 pm #

    I’ll lay odds that that PX part was solely to do with confirming the new otagonet structure.

    The problem councillors face is that EIL can in all reality do deals over $10M with only the say of ICHL, their SOI gives them upto 10% of total assets before needing approval.

    Worried??

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