Councillors concerned over potential conflict of interest Rotorua district councillors are concerned about a potential conflict of interest after learning the council chief executive’s wife is selling a million-dollar property on behalf of the council.

The Rotorua District Council is selling a piece of land in Horohoro that is on the market for $1.2 million. It is listed on the Ray White Real Estate (formerly Coopers) website with council chief executive Peter Guerin’s wife Toni Guerin, named as the estate agent in charge of the sale.

The council has denied any conflict of interest but some councillors say Mr Guerin should re-think the sale and find another agent.

Mrs Guerin did not return a call from The Daily Post but Ray White Real Estate co-owner Tim O’Sullivan said the company was treating the sale the same as any other real estate transaction. He referred any further questions to the property’s owners, the council.

In 2007 the council bought a 41ha site for about $1.2 million on Apirana Rd in Horohoro to use as a cemetery but residents opposed the plan and the council looked for another site. One was found near Tarukenga on State Highway 5, between the Lake View Golf Course and a farm and was bought in December last year for $795,000.

Mr Guerin did not respond to questions put to him yesterday by The Daily Post regarding the Horohoro property sale but referred queries to council parks and recreation manager Garry Page. He confirmed Ray White Real Estate was sole agency for the sale.

“It’s the first time it has actively been on the market since we purchased land at Tarukenga in December last year for the new cemetery,” Mr Page said.

Mr Guerin had not had any involvement in the sale process as land sales were handled at department manager level, he said.

“I have been very careful not to involve Mr Guerin in the process at all, to ensure that there is no conflict.”

Mr Page said he contacted all the major local real estate companies when he started the process of finding a new cemetery site, eventually selecting three which expressed an interest in working with the council.

“After we had purchased a new site I then made contact with each of these three companies, and invited them to give us a proposal for selling the Horohoro land. [Ray White] were one of these companies and I contracted them for a 90-day period to find a buyer for the land.”

He said the real estate company told him they had a potential buyer lined up.

“At the end of the 90-day period our agreement with Ray White lapses and if no sale has been made we will consider offering the sole agency to another company for a similar period.”

Mr Page said the council used a number of local real estate companies to help sell council-owned land. He said the council had made an agreement with the real estate company, not with Mrs Guerin, and any commission on the sale was a matter between her and her employer.

“But I can confirm the commission levels are dependent on what sale price is ultimately achieved and are in line with standard commission arrangements,” he said.

District councillor Mike McVicker, who is chairman of council’s economic and regulatory services committee, said he was concerned at the perceived conflict of interest and suggested Mr Guerin re-think the council’s real estate arrangements.

“I am surprised the chief executive’s wife has got the exclusive opportunity to sell that property – this is clearly a conflict of interest,” he said.

Councillor Mark Gould said another estate agent should have been used.

Real Estate Institute of New Zealand Rotorua spokesman Ian McDowell said he was not overly concerned about Mrs Guerin selling council-owned land but said he would have thought the council would have used a rural real estate specialist.

“Someone has to sell it … I know the council use different agents to sell property but I would have thought a rural specialist like Duncans, Wrightsons or Bayleys would have been used,” he said.

Rotorua Mayor Kevin Winters said he was aware of the sale but did not expect to be told the details surrounding it as “the actual sale process is an operational matter, not one for the political arm of the council”.

“I am only concerned about the potential for negative perceptions when the full facts aren’t widely known,” he said.

“However, in this case, I am confident that Mr Page has acted professionally and ensured that there is no conflict of interest.” .