Auditor General Clarifies SkyCity Report

This week, Auditor General Phillippa Smith came forward to offer some clarification about her report concerning the SkyCity convention centre deal. She initially reported that neither the casino operator nor the local government acted inappropriately – and Prime Minister John Key announced that the report vindicated the deal. Unfortunately for him, this was not the case.

The Auditor General’s assistance was requested by the Greens in 2012. The political party felt that the deal (which would see SkyCity build the $350 million convention centre in return for 500 new pokies) was not entirely above board, and Phillippa Smith was brought in to investigate the deal.

She determined that SkyCity had been given an unfair advantage, especially since the casino operator was the government’s last choice. However, the group was willing to pay for all of the construction costs for the convention centre, so the government worked with SkyCity to improve its proposal. Although John Key claims that these findings vindicate the deal, Smith states otherwise.

As such, The Greens and other political groups feel that the tender process should be repeated. Many other groups were interested in building the convention centre, and they feel that they should be given a fair chance to bid on the project.

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