Kiwirail’s $8 million consultants

Winston Peters announced:

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.