Contractors claim EQC owes them $4 million

Published: 5:41AM Monday July 04, 2011 Source: Newstalk ZB / ONE News

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More Christchurch contractors are adding their voice to claims the Earthquake Commission owes them millions of dollars.

The EQC is being taken to court by the Amalgamated Workers Union, which says the insurance agency owes dozens of contractors at least $4 million.

Secretary Calvin Fisher says he has been contacted by around 20 companies and believes they are just scratching the tip of the iceberg.

Fisher is meeting with lawyers today and hopes to file papers in the Christchurch District Court this Friday.

Back in May, the Amalgamated Workers' Union said "dozens" of companies had complained about being owed money by the commission, with at least one considering laying people off.

The complaints led the head of the Earthquake Commission to admit the organisation may have "dropped the ball", but it needed to make sure it was paying for valid work.

Ian Simpson said there had been cases where work has been claimed and invoiced for which has not been done.

White zone rumours quashed

The Earthquake Commission is quashing rumours the fate of homes in Christchurch's white zone will be known this week.

It has been suggested the white zone reports are near completion but Canterbury event manager Reid Stiven said they are only expecting completed reports from geotechnical engineers this week.

He said that doesn't relate to the designation of a zone, but identifies the extent of land damage property by property.

Stiven said it gives EQC an idea of things like rotated or damaged retaining walls which will be subject to normal claims.

He said it is up to CERA to make decisions around zones as a whole.

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