CITY COUNCIL CONTRACTS.

Auckland Star, Volume LVIII, Issue 86, 12 April 1927, Page 10

CITY COUNCIL CONTRACTS.

LOWEST NOT ACCEPTED. THK UHIKYAXCE OF Ml!. DKI.RH. The protests of a transport tenderer for City Council work were aired last evening by Mr. J. 11. Lundon at a nieetinir of the executive committee of the City West Progressive Association. The contracts concerned were for the hire of motor trucks for the cartage of road-making materials. There were three separate contracts, said Mr. Lundon. For No. 1 contract M. Delich. who had been engaged in similar work on behalf of the linn of Messrs. Morgan and Docherty, City Council contractors, for the past four years, had submitted the lowest tender, while for No. 2 contract Delich's figures for the most important portion of the work had been considerably below the second lowest tenderer. Contract No. 3 did not need to be mentioned for the present.

But for the first two contracts neither of Delicli's tenders had been accepted, although substantially the lowest. According to reports submitted to the City Council the city enjjineer had stated that ho had no knowledge of I Mich's position and capacity to perform the contract. The engineer had made no recommendations, nor had he taken any steps to find out whether Dclich was qualified for the job. The conditions of No. 2 contract, said Mr. Lundon. stated clearly that a firm could tender for any portion of the work, and in this contract Delich's fipures were easily -lowest. In both instances it was recommended that a hiphcr tender Ik> accepted, despite the fact that "Delich was personally known to some of the council's oflicials. nnd at a joint meeting held on March 17, it had been decided to pa>s the recommendation on to the council. At the council me.-tuifr the same evening the lecuiumeiidation wits adopted. A Protest Lodged. On the morning of March Jl a Idler of protest from Delich had been handed to the Mayor (Mr. (J. Baildou), by Councillor Phclan, in the presence of Dclich. After reading the protest the Mayor had said that he recognised that Delich had a genuine grievance, and immediately pivi , instructions that the matter should be held up, and that no letters should Insent to any of the tenderers before the committee hail reconsidered the matter. The letter of protect had been handed in at the Town Hall. "Hut.' , said Mr. Lundon. "when the letter was required at a later date it could not be found." It was produced, however, at last week's meet ing of the committee.

Continuing, Mr. Luiidon declared that the Mayor's instructions apparently miscarried, letters of rejection, and, he understood, of acceptance, being sent, out to the tenderer?. The postmarks on the letters .sent to Dclich proved conclusively that they had been cent out the day after the Mayor had given his instruction*. "Who sent them lias never been disclosed to Mr. Dclich," he remarked.

On March 2."J or 24 Dolich had received two letters from the Town Clerk, stating that his tenders hud not l>een accepted, iilid that he could call to receive his deposit money. Delich had at tmee replied that lie preferred to lc:i\e his deposit until the council had reconsidered the tenders, in the terms of the Mayor's promise of two days Wfore. "And the Mayor kept his promise, and on Thursday last a meetini: was held." said .Mr. Luiidon. "It was then stated, when the receipt of Delich's letter of protest was mentioned, that us the second lowest tender had already l>ecn accepted the council was bound to that thin.'' Up till that time Delich had not l>een approached concerning his position and capacity to perform the contract.

At last week's meeting Delicli, with his witnesses, attended. Delich was then examined, but not so his witnesses. It transpired, said Mr. Lundon. that previously every effort had been made to •jet Delich to withdraw his protect, and that lie had done so on March .'<o under pressure. On the follow ing morning. however, he had cancelled that withdrawal, and had handed in his cancellation to the Mayor, in the presence of Councillor Phelf.n.

Finally, Mr. Lundon understood, tlio committee had rwonnnended that the work should be carried out by the council, Pelich to be given a portion.

It is tindcrstoivl that tho re«v>iumendation will conn- hoforp iho i-niirn-'l <>n Tlmixl;i\.