An $11 million mistake

Martin van Beynen at The Press reports:

Get ready to pick up the tab for an $11 million insurance mistake by Christchurch City Council.

The error arose when council staff failed to insure the new $21m composting plant in Bromley when it opened in 2009.

An investigation by The Press into council’s insurance shortcomings has confirmed ratepayers will pick up the tab for the plant’s repair as no government subsidy is available.

The problem comes to light as a raft of insurance difficulties with council assets emerge, including questions over crucial valuations.

General manager corporate services Paul Anderson said the mistake was a “straightforward clerical error in my team so I’m responsible for that”.

The plant was insured while it was built but it was omitted from a schedule of completed assets.

“My team didn’t pick it up; our brokers didn’t pick it up,” Anderson said.

Asked whether disciplinary action was taken against the staff members responsible, he said the “insurance team” was now “not the same as it was at the time”.

So no one will be held accountable. Hey its only $11 million.