QLDC denies existence of "missing" $800,000 Veolia payment
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In questions asked by Crux the Queenstown Lakes District Council says that Beaver Contractors (or any variation on that name) is not a supplier to the council and is not on the council's payments systems.
The answer was in response to the following question from Crux on February 27, 2025.
"There appears to be a large missing transaction from your 2024 Supplier Spend reports - to Veolia. The cost of the earth wall/bund and associated pipe works and repair works at the Shotover Wastewater Plant, commissioned by Veolia’s Marcus Warren for payment to the Beaver Group - estimated at $600,00 to $800,000. We only see two apparently fixed amounts of 2 x (approx) $5,498,789 and 2 x (approx) $4,592,841 - clearly parts of a larger fixed contract. Can you supply details alf this one off payment and why it is not included in the suppler reports?"
The answer, received from QLDC on Match 7, 2025 was:
"These reports are based on QLDC accounts payable and summarise all invoices paid for all suppliers during each quarterly period. Having reviewed the reports, Council’s finance team can confirm that no payments are missing and note that Beaver Group (or any variation on that business name relating to civil engineering) is not a supplier to QLDC and not on Council’s accounts payable system."
Our next step in this investigation to to ask Veolia (again) why they paid Beaver Contractors without any apparent matching payment from QLDC. Sources linked to the project have told Crux that Beaver Contractors were not an approved supplier to Veolia.
These questions are important because the sewage wall built by Beavers Contractors, in 2024, did not have resource consent and now needs to be demolished and reengineered due to the lack of resource consent and frequent collapses that have resulted in highly toxic effluent being discharged into local rivers.
These questions are also important because our local mayor and local MP claim that water in the disposal field is "fully treated and safe" and that the main plant is fully effective and operational.
All of the court evidence from the Otago Regional Council shows the disposal field contains highly toxic waste as a result of numerous failures at the main Shotover sewage plant. The documents paint a picture of the main plant being badly run for many years - with the full knowledge of the Queenstown Lakes District Council.
Crux has taken a detailed look at Beaver Contractors.
Two Skyline Enterprises directors, Grant Hensman and Donald Jackson are linked to Beaver 2020 Ltd but Mr Hensman’s son in law Garth Lawrence now runs the company day to day. According to Companies Office records, Mr Hensman ceased to be a director and shareholder of the company in May last year.
A Beaver truck at the Shotover sewage disposal field
Mr Lawrence told Crux earlier on 2025 that the $800,000 cost of the wall quoted from our sources is not accurate and the actual cost was much lower. He referred all questions to Marcus Warren, the local manager of Veolia. Mr Lawrence also denied claims that Beaver was not an authorised Veolia civil engineering panel supplier.
Mr Warren of Veolia was until recently a senior manager at the Queenstown Lakes District Council.
Mr Hensman issued the following statement to Crux.
“You are incorrect that Southern Beaver completed any works at the Shotover ponds as I sold the assets on the 31st march 2022 and ceased trading as Southern Beaver .
“The trading name Beaver Contractors has continued under new ownership of which I am not a shareholder or director since the 31st of March 2024.”
Mr Hensman’s shareholding in Beaver 2020 Ltd (jointly held with Noel Van Wichen) was transferred to Mr Jackson and Mr Lawrence.
The CEO of Skyline Enterprises, Geoff McDonald told Crux:
“Skyline has no involvement, interest or connection with this so I cannot make any comment.”
Crux did point out that Beaver Contractors (Beaver 2020 Ltd) has worked for Skyline on recent projects.
Mr McDonald replied:
“Yes, Beavers have done work for Skyline in the past when Grant was a Director of that company - that’s no big deal? We used them for various civil works jobs on the hill, assisting with luge track construction, excavation for the carpark, etc. Whenever work occurred linked to Grant or any other Director for that matter it was always declared in the relevant annual accounts under ‘statutory disclosures’”
Mr McDonald did not comment specifically on the more recent involvement of fellow Skyline Director Donald Jackson.
The Beaver Contractors website features may local projects but makes no mention of the work on the Shotover sewage wall.
Satellite images show the failure of the disposal field.
The Shotover disposal field at the end of the ZQN runway has slowly become blocked and inundated over the past four years. The field is supposed to be just dry gravel. The perimeter wall was built in 2024 in a failed attempt to contain overflowing liquid effluent. Images: Google Earth.
Google Earth images over the past five years show the gradual inundation of the disposal field and the effect of the wall in holding surplus effluent, temporarily, inside the disposal field fence.
Now though, effluent is being discharged on virtually a daily basis over the top of the wall and the ORC’s court application calls on the QLDC to stop this over the next two months, by somehow channelling the effluent underground and filling a large local recreation reserve with aggregate/gravel.
Since November 2024 Crux has recorded video of the recreation reserve which is now inundated with partially treated sewage. Effluent flows through the reserve into the Kawarau River. The river has a special environmental protection order in place.
Deputy Mayor Quentin Smith and ORC councillor Alexa Forbes are both calling for an immediate halt to all Queenstown development until the Shotover plant is fully operational – potentially five years into the future.
Main Image: Beaver Contractors at work on Skyline's new gondola.
Read:
Ex QLDC Veolia manager silent on $800,000 deal
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