Rail Minister Winston Peters has described KiwiRail’s payment of $8 million to a management consultancy firm as unacceptable.
“We are not criticising McKinsey, whose services were tendered in a lawful and competitive manner. We are criticising the decision to pay that sum,” says Mr Peters.
KiwiRail engaged McKinsey on 6 December 2023, but did not tell the Government about it until 7 February 2024 or disclose the value of the payment to Ministers until 6 June 2024.
I think new board members are needed. To not tell the incoming Government of such a massive contract for two months, and keep the costs hidden for six months is astonishing.
David Farrar runs Curia Market Research, a specialist opinion polling and research agency, and the popular Kiwiblog where this article was sourced. He previously worked in the Parliament for eight years, serving two National Party Prime Ministers and three Opposition Leaders.
3 comments:
If NZ rails managers have contracted out the managing … then what are NZ rails managers managing? 🤔
How much has Greg Foran of Air NZ paid to McKinsey?
It’s frustrating to see such a massive amount of taxpayer money — $8 million — spent on what seems like a poor investment by KiwiRail. You would expect a project of this scale to deliver some real value, but from the looks of it, the outcome is disappointing and raises serious questions about accountability. With so many other pressing needs across the country, it's hard to justify this kind of expenditure, especially when it appears to benefit so few and lacks proper oversight. It really highlights the need for more transparency and better decision-making in our state-owned enterprises.
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