Post by Brent George on Dec 3, 2023 18:50:07 GMT
How a developer held the Government to ransom for a $37.8 million bailout
Stuff: Auckland - 3-Dec-2023
The Government has paid a major developer $37.8 million in a land deal, after it allegedly threatened to openly flout its legal obligations and sell scores of KiwiBuild homes out from underneath anxious buyers.
Documents released to Stuff under the Official Information Act show that developers The Neighbourhood Ormiston told Kāinga Ora (KO) they were on the brink of receivership and would need assistance.
Cabinet ministers allowed the housing agency to pay up against the advice of the Treasury, after being warned of "reputational damages" the debacle could cause to the KiwiBuild programme.
Stuff: Auckland - 3-Dec-2023
The Government has paid a major developer $37.8 million in a land deal, after it allegedly threatened to openly flout its legal obligations and sell scores of KiwiBuild homes out from underneath anxious buyers.
Documents released to Stuff under the Official Information Act show that developers The Neighbourhood Ormiston told Kāinga Ora (KO) they were on the brink of receivership and would need assistance.
Cabinet ministers allowed the housing agency to pay up against the advice of the Treasury, after being warned of "reputational damages" the debacle could cause to the KiwiBuild programme.