Coun­cil wipes bad debt

Kapi-Mana News - - FRONT PAGE - KRIS DANDO

Porirua City Coun­cil has writ­ten off a $238,000 debt from a for­mer Whitby de­vel­oper, rather than chase it through the courts.

As part of a pre­sen­ta­tion to the coun­cil fi­nance com­mit­tee last week, chief fi­nan­cial of­fi­cer Roy Baker listed a group of over­due debtors ow­ing more than $3000.

Some coun­cil­lors ques­tioned read­ing the names of com­pa­nies in the pres­ence of me­dia, but Baker said it was a mat­ter of pub­lic record.

One pay­ment ar­range­ment has been en­tered into with a debtor whose $66,000 debt is 90 days over­due and one per­son has filed an ob­jec­tion with the En­vi­ron­ment Court over coun­cil fees to­talling $73,000.

David Brad­ford’s $238k debt won’t be pur­sued.

How­ever, the big­gest out­stand­ing amount won’t be pur­sued – $238,000 from Whitby Coastal Es­tates Ltd de­vel­oper David Brad­ford.

Baker said the cost was from a ‘‘land trans­ac­tion’’ be­tween the coun­cil and Brad­ford.

De­spite Whitby Coastal Es­tates Ltd sell­ing its re­main­ing land to Todd Group about four years ago, the $238,000 debt re­mained with Brad­ford.

‘‘The cost of go­ing through the courts was thought to be high, so we are in the process of writ­ing this debt off,’’ Baker said.

The coun­cil is also owed $112,000 in rates ar­rears from pre­vi­ous fi­nan­cial years.

Over­all, cap­i­tal ex­pen­di­ture for the fi­nan­cial year, due to end in June, is fore­cast to be $6.2 mil­lion less than bud­geted.

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