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What the OAG said about the sale process

Case study for students: Paraparaumu Aerodrome.

Valuation

The OAG was satisfied that the ‘going concern' sale method was an acceptable way of balancing the government's aims of maximising sale income and keeping the aerodrome open. It found that the valuation was reasonable.

Tender assessment

The OAG said that the tenders were assessed with appropriate rigour. However, it suggested that the assessment criteria and process should have been more formal and better documented.

In particular, it said that the decision to start negotiating with KAH before the tender deadline was not good practice.