Foreword

This report presents the results of an inquiry into the role of the Electricity Commission and the Ministry of Economic Development in contracting with service providers in December 2003.

My inquiry was prompted by a complaint that the Commission and the Ministry, in appointing service providers, did not follow good practice in procuring public sector services.

This report describes events leading up to the decision to appoint contractors, and analyses the practices followed. It also sets out my expectations of public entities involved in sole source procurement in circumstances where contestable procurement is impracticable.

I thank the Electricity Commission, the Ministry of Economic Development, and the Commission’s current service providers. They all co-operated fully with my inquiry.

K B Brady
Controller and Auditor-General

22 July 2005