DCC Fraud: Further official information in reply to Cr Vandervis

Following on from the previous post.
DCC has established an Investigation Steering Group (membership unknown).

Received from Cr Lee Vandervis
Mon, 1 Sep 2014 at 9:51 p.m.

[begins]

—— Forwarded Message
From: Lee Vandervis
Sent: Wednesday, 27 August 2014 11:09 a.m.
To: Sandy Graham [DCC]
Subject: Re: 8 x LGOIMA requests

Hi Sandy,

Thank you for responding so rapidly on the 8 questions.

To clarify, have the DCC asked for the SFO to investigate the Citifleet frauds and when, or has the SFO only been briefed indirectly by Deloittes as in answer 7?

Also, are your responses public or confidential?

Cheers,
Lee

——————————

From: Sandy Graham [DCC]
Date: Mon, 1 Sep 2014 11:08:40 +1200
To: Lee Vandervis
Subject: RE: 8 x LGOIMA requests

Dear Lee

I have followed up your question of clarification about the SFO and can provide the following response:
Under the circumstances of a suspected fraud (as per the Citifleet situation at the beginning of the investigation), the normal course of events is that the SFO is informed of issues when they arise. Deloitte did this via a phone-call to the SFO on 12 June 2014, after a discussion with DCC staff at a meeting of the Investigation Steering Group. The steering group were fully aware of the fact that Deloitte was speaking with the SFO and were informed of the outcome of the call. The call to the SFO was us asking the SFO to consider an investigation.

The discussion on 12 June 2014 (which was with a case officer and with Nick Paterson, the GM Fraud and Corruption) summarised the facts and circumstances of the Citifleet issues and sought the view of the SFO.
It is then the SFO’s decision as to whether they commence their own investigation. This is based on the criteria set out on their website (copied below)

There are multiple victims (usually investors) of the suspected fraud

● The sum of money lost exceeds $2,000,000

● The alleged criminal transactions have significant legal or financial complexity beyond the resources of most other law enforcement agencies.

In the case of bribery or corruption matters, we focus on crimes involving public officials, which could undermine public confidence in the administration of laws

Based primarily on the fact that the main suspect was deceased and that the actions appeared to be those of one corrupt individual rather than fitting within the definition of bribery and corruption, the GM Fraud and Corruption decided that the best course of action was for Deloitte to complete its investigation and provide a copy of the report at the conclusion of its work. During the investigation and with permission from DCC, Deloitte provided an update on the investigation to SFO on 07 July 2014 via letter. A copy of the full report was provided on 21 August 2014. We have heard nothing back from the SFO to date.

As to confidentiality, these OIA replies are all able to be made public and as such they will be published on the website and I will be providing a copy of the information to all Councillors.

Regards
Sandy [Group Manager Corporate Services, DCC]
—— End of Forwarded Message

[ends]

Note: The auditors that Dunedin City Council has contracted to investigate fraud carry the name Deloitte New Zealand, or simply Deloitte. Link

Related Posts and Comments:
30.8.14 DCC Fraud: Cr Vandervis states urgent need for facts…
28.8.14 DCC: Tony Avery resigns
27.8.14 DCC whitewash on serious fraud, steals democracy from citizens
26.8.14 DCC: Forensics for kids
23.8.14 DCC public finance forum 12.8.14 (ten slides)
6.8.14 DCC tightens policy + Auditor-General’s facetious comments
1.7.14 DCC: Far-reaching fraud investigation Citifleet
3.6.14 DCC unit under investigation
2.5.14 DCC $tar-ship enterprise
28.4.14 DCC loses City Property manager in restructuring
7.2.12 DCC ‘money go round’ embedded

Posted by Elizabeth Kerr

2 Comments

Filed under Business, Citifleet, DCC, DCHL, Democracy, Economics, Name, New Zealand, People, Politics, Project management, Property

DCC Fraud: Cr Vandervis states urgent need for facts and the record to be made public

Lee Vandervis + Dave Cull [photos via leevandervis.wordpress.com] BW (1)

The following correspondence is reproduced in the public interest.

Received from Lee Vandervis
Sat, 30 Aug 2014 at 11:30 a.m.

Message: You may be interested in the following email trail, which I believe highlights a serious impediment to the cleansing process which is taking far too long at the DCC.
I am happy for you to publish.
Regards,
Cr. Lee Vandervis

[begins]

—— Forwarded Message
From: Lee Vandervis
Date: Fri, 29 Aug 2014 21:36:35 +1200
To: Dave Cull
Cc: Sue Bidrose, Sandy Graham, Andrew Noone, Andrew Whiley, Chris Staynes, Doug Hall, Hilary Calvert, John Bezett, Jinty MacTavish, Kate Wilson, Mayor Cull, Mike Lord, Neville Peat, Richard Thomson, David Benson-Pope, Aaron Hawkins
Conversation: Recent events
Subject: Re: Recent events

Dear Mayor Cull.

Denial is not just a large river in Egypt.
You confirm the urgent need for facts and the record to be made public.

Regards,
Cr. Vandervis

——————————

On 29/08/14 2:41 PM, “Dave Cull” wrote:

Lee,
I do not believe that many of your claims below are borne out by the record or the facts and stand by my comments.

Dave

Sent from my iPad

——————————

[conversion code deleted from body text, punctuation restored -Eds]

On 29/08/2014, at 11:16 AM, “Lee Vandervis” wrote:

Dear Mayor Cull,

I believe that you have been long aware of my efforts to have Mr Bachop’s and other DCC departments investigated for the kinds of inappropriateness currently evident in Citifleet.
In particular you now know having read the Deloitte report, [and I believe have long known] that I have been calling for and instigated my own investigations into Citifleet vehicle disposals and contracting arrangements since at least 2011. I have been responding politically, then and since, to many business and individual requests and questions from, for example Turner’s Auctions, regarding Citifleet. Answers to many of my questions have been denied or not forthcoming, and the public right to know has been consequently frustrated. Your public claim that CEO Orders began the current investigative and restructuring process [by starting with DCHL?!] does not align with information I have, or with information and requests for investigation that I made to CEO Orders many years ago.

My understanding is that the Police were not moved to investigate Citifleet when contacted by the DCC over 3 months ago, even when the evidence was so tragically overwhelming that Deloittes were contracted by CEO Bidrose [costing us $200,000] to investigate. I am not convinced that Police requests for a further unspecified number of months of ‘no public comment’ is in the public interest, and my discussion with the Crown Solicitor was also unconvincing on this point.
You say below that ‘the investigation is not a process which you as a Councillor (or I) in our governance roles have a right to’, yet you have the right and have read the Deloitte Citifleet Investigation Report and made numerous public comments, and I have been denied seeing it even on a ‘grey papers’ basis and am being muzzled. Your ‘operational only’ claim is generally questionable and in this case fails on all counts.
We will never know all the facts, especially if the withholding of the Deloitte report and more public muzzling continues.
In one of your media statements you say that Council have agreed not to comment until the Police have completed their belated investigation, but this is not true. Councillors have not been given the opportunity to even discuss a further number of months of no comment on Citifleet, leave alone agreed not to comment. I have certainly not agreed and do not agree.

Thank you for acknowledging my long standing demands that DCC ‘heads should roll’. My long political experience is that timely public disclosure will be necessary to ensure that the appropriate heads are dispatched, and that an embedded DCC culture of self-entitlement across many departments is permanently erased.

Regards,
Cr. Vandervis

——————————

On 28/08/14 5:30 PM, “Dave Cull” wrote:

Lee,
The investigation that the CEO has contracted Deloittes to conduct into Citifleet is an operational matter involving, among other things, employment and potentially criminal issues. From the outset the Police, Serious Fraud Office, and Dept of Internal Affairs have been kept informed.

The investigation and subsequent internal reviews were instigated within DCC.
However the investigation is not a process which you as a Councillor (or I) in our governance roles have a right to, or responsibility for, interfering in or giving direction on, except as part of a whole of Council directive.

The investigation included the question of whether the problems uncovered at Citifleet had been the subject of previous allegations or questions, and if so, whether those had been responded to appropriately by management, including CEOs. Deloittes will report back on that.

The request not to release the report and the consequential request not to comment came not from the CEO (or me) but from Police and the Crown Prosecutor. Indeed both the CEO and I feel frustrated and disappointed as you do, that the report, which was completed only a week or so ago, must now sit under wraps for a further period.

However it is important that nothing jeopardises the ability of the CEO and police to hold people to account. You often demand that ‘heads should roll’
Your claims and demands, without knowledge of the investigation findings, could do just that: put the aims of the investigation to hold people accountable at risk.

I am not suggesting Councillors do not have the right to ask questions or make requests. What we do not have a right to do is step outside our governance roles, interfere with legitimate operational matters particularly without knowing all the facts, and unilaterally jeopardize Council and ratepayer interests. If we do we should be fully held to account for that.

Dave

Dave Cull
Mayor of Dunedin
—— End of Forwarded Message

[ends]

Note: The auditors that Dunedin City Council has contracted to investigate fraud carry the name Deloitte New Zealand, or simply Deloitte. Link

Related Post and Comments:
28.8.14 DCC: Tony Avery resigns
27.8.14 DCC whitewash on serious fraud, steals democracy from citizens
26.8.14 DCC: Forensics for kids
23.8.14 DCC public finance forum 12.8.14 (ten slides)
6.8.14 DCC tightens policy + Auditor-General’s facetious comments
1.7.14 DCC: Far-reaching fraud investigation Citifleet
3.6.14 DCC unit under investigation
2.5.14 DCC $tar-ship enterprise
28.4.14 DCC loses City Property manager in restructuring
7.2.12 DCC ‘money go round’ embedded

Posted by Elizabeth Kerr

*Images: leevandervis.wordpress.com

23 Comments

Filed under Business, Citifleet, DCC, DCHL, Democracy, Economics, Name, New Zealand, People, Politics, Project management, Property

NZ Loan and Mercantile Building: Looking round at potential

LM Building, detail from A Trapeznik, Dunedin's Warehouse Precinct p34 [Hocken Collections]LM Building, detail from A Trapeznik, Dunedin's Warehouse Precinct p68 [Hocken Collections] 1NZ Loan and Mercantile Building, built in stages between 1872 and 1885. Historical building and harbour views (1925) before the addition of the concrete top storey with saw-tooth roof in 1929, the space now proposed for residential use. Details from photographs reproduced in Trapeznik’s book Dunedin’s Warehouse Precinct, pp34 & 68 [Photos: Hocken Collections]

Screenshot (193) 1Screenshot (195)31-33 Wharf St, proximity to Steamer Basin and Chinese Garden
[Photos: Google Streetview 2013]

ODT 29.8.14 (page 12)
ODT 29.8.14 Letter to the editor Wilson p12 (1)

Chinese GardenL&M 1b IMG_6945,jpgChinese GardenL&M 1a IMG_6924Chinese GardenL&M 1a IMG_6933NZ Loan and Mercantile Building and forecourt of the Chinese Garden from Rattray St [Photos: Elizabeth Kerr]

### ODT Online Fri, 29 Aug 2014
DCC to foot apartments consent bill
By Debbie Porteous
The Dunedin City Council is footing the bill to process the consent required for the development of the former Loan and Mercantile Building in the harbourside area. But the chairman of the panel deciding whether to grant consent to convert the building to apartments says the historic agreement has no bearing on the decision. The no fee arrangement is the result of a council resolution dated September 2011, in which the council agreed any resource consent required for the development and use of the building at 33 Thomas Burns St should be processed at no cost to the applicant. The resolution was part of a suite of agreements resulting from the mediation process that resolved appeals to Plan Change 7: Dunedin Harbourside.
Read more

Screenshot (183) 1Screenshot (188) 1Building details [Photos: Google Streetview 2013] – The NZ Loan and Mercantile Building, originally known as the Otago Wool Stores, was built in 1872 for stock and station agents Driver Stewart and Co. Heritage New Zealand lists the construction professionals as Walter Bell, Robert Arthur Lawson, and Mason & Wales Architects Ltd. According to Trapeznik, William Mason was the architect responsible for the plainer part of the complex in the early 1870s. RA Lawson designed the right-hand corner extension in 1880, with additions in 1883 and 1885.

█ More photos here.

Related Posts and Comments:
18.8.14 NZ Loan and Mercantile Building #randomsmartphonepix (interiors)
17.8.14 Public Notices: NZ Loan and Mercantile Building… (site tour, hearing)
13.8.14 Chamber’s Own Goals —Heritage (letters)
11.8.14 NZ Loan and Mercantile Building (audio)
8.8.14 NZ Loan and Mercantile Agency Co Ltd Building…
18.3.14 Dunedin Harbourside: English Heritage on portside development
21.10.13 Harbourside: Access to a revamped Steamer Basin has public backing

█ For more on Dunedin’s Harbourside and Plan Change 7, enter the term *harbourside* in the search box at right.

Screenshot (196)Screenshot (197) 1NZ Loan and Mercantile Building (b. 1872-85), next to the former W. Gregg & Co. coffee factory (b. 1878) and the Wharf Hotel established circa 1880
[Photos: Google Streetview 2013]

Posted by Elizabeth Kerr

● NZ Loan and Mercantile Agency Co. Ltd Building – mention by Alexander Trapeznik in Dunedin’s Warehouse Precinct at http://www.genrebooks.co.nz/ebooks/DunedinsWarehousePrecinct.pdf (2014) pp66-71

● W. Gregg & Co. coffee factory and store, Fryatt St – mention by blogger David Murray at http://builtindunedin.com/2014/02/17/thomas-bedford-cameron-architect/

● Wharf Hotel – mention by Frank Tod in Pubs Galore: History of Dunedin Hotels 1848-1984 (Dunedin: Historical Publications, 1984) p61

█ Peter Entwisle has recently researched the history and significance of the NZ Loan and Mercantile Building, and presented his findings in evidence to hearing for the application. The information is now in public domain and will be reproduced here after scanning.

1 Comment

Filed under Architecture, Business, Construction, DCC, Democracy, Design, Economics, Heritage, Heritage NZ, Innovation, Inspiration, Media, Name, New Zealand, NZTA, ORFU, People, Pics, Politics, Project management, Property, Site, Tourism, Town planning, Urban design, What stadium

Special Rigs for Special Kids —Sunday, 31 August 2014

Special Rigs for Special Kids [via YouTube] 1a

Special Rigs for Special Kids provides an unforgettable experience to those kids who have special needs.

This Sunday, 250 working rigs (large trucks) will take 350 kids and their families for a unique journey through parts of Dunedin and Mosgiel, starting at and returning to the Edgar Centre Portsmouth Drive. A barbeque, food and drinks have been arranged for the end of trip – that means catering for about 1400 people at the Edgar Centre on the day!

### dunedintv.co.nz August 29, 2014 – 6:51pm
Nightly interview: Greg Inch
The annual Special Rigs for Special Kids event is taking place in Dunedin on Sunday. It gives children with special needs the opportunity to travel around the neighbourhood in trucks brought to the city from throughout the country. Founder Greg Inch joins us to explain what makes the event unique.
Video

█ For more about Dunedin’s Special Rigs for Special Kids, go to the website:
http://www.specialrigs.org.nz/

EVENT DETAILS – Go to ‘Next Outing’ and scroll down for directions, map and route informationhttp://www.specialrigs.org.nz/next_outing.php

Special Rigs for Special Kids trucks_in_convoy_down_dukes_rd [odt.co.nz]

Posted by Elizabeth Kerr

*Images: Special Rigs for Special Kids (Dunedin) | youtube.com – Hall’s Refrigerated Transport | odt.co.nz – Trucks in convoy down Dukes Road

2 Comments

Filed under Events, Fun, Inspiration, Media, People

Stadium Review: dark yet rosy thoughts

ODT 28.8.14 Letter to the editor Cuthbert p12 (1)ODT 28.8.14 (page 12)

Posted by Elizabeth Kerr

2 Comments

Filed under Architecture, Business, Construction, DCC, Democracy, Design, DVL, DVML, Economics, Fun, Inspiration, Media, Name, New Zealand, NZRU, ORFU, People, Pics, Politics, Project management, Property, Site, Sport, Stadiums, Tourism, Urban design, What stadium

DCC: Tony Avery resigns

Council chief executive Sue Bidrose said in the statement she had “immense respect for the honourable action Tony has taken”.

Tony Avery 3### ODT Online Thu, 28 Aug 2014
Top DCC boss Tony Avery quits over Citifleet scandal
By Chris Morris
The Dunedin City Council’s alleged Citifleet fraud has claimed another victim with the shock resignation of infrastructure and networks general manager Tony Avery. Mr Avery announced his decision to quit the council in a media statement this afternoon, saying he accepted “the management buck stops with me”. That was despite not being aware of, or involved in, the alleged fraud, or receiving information that alerted him to it, he said. Read more [comments closed, again]

● Today’s cosy news is an ODT/Ch39 exclusive – no other News Media given scoop. Tomorrow’s ODT will feature an exclusive interview with Mr Avery who says ‘he has done nothing wrong’ but he has ‘some strong things to say’ !! (ODT interview given prior to his statement, we hear)

● (Ian Telfer) RNZ News
Council manager resigns over fleet – DCC staff told this afternoon. ‘In a statement, Mr Avery said he was not involved with and did not know about the fraud, but relied on internal financial controls which let him down.’ Link (subtle dig at former CFO ?)

● (Wilma McCorkindale) Stuff via Southland Times
Dunedin council manager resigns amid fraud probe – ‘Avery, with the council since 2000, has fallen on his sword in the wake of revelation the DCC has been the victim of an alleged sizeable employee fraud within its Citifleet unit, which manages the council’s vehicle fleet.’ ‘An investigation by Deloitte was “very clear” there was nothing to indicate Avery was aware of the alleged fraud. Bidrose stressed Avery was not one of the DCC staff currently involved in employment processes resulting from the suspected activity.’ Link

Posted by Elizabeth Kerr
█ The site owner reserves the right to take down or abridge any comment.

*Image (tweaked by whatifdunedin): Tony Avery

67 Comments

Filed under Business, DCC, Economics, Media, Name, New Zealand, People, Pics, Politics, Project management, Property

DCC whitewash on serious fraud, steals democracy from citizens

MILLIONS
ORFU / NZRU
CST
Stadium / DVML
Carisbrook
Delta
Citifleet
City Property
Mosgiel-Taieri Community Board
Other

The story today at ODT, Further DCC inquiries possible amid changes – with no ability to post online comments – smacks of the very worst of undemocratic processes and shonky leadership coming to light at Dunedin City Council.

“The Government had the power to replace an elected council with commissioners, or appoint managers alongside, or over the top of, a council’s existing management team. Dr Bidrose confirmed the council had been keeping DIA staff informed about the alleged Citifleet fraud, as well as the council’s reform process, but there were no signs an intervention was likely.”

Be pleased with today’s ODT editorial: Disturbing ‘we know best’ attitude

Meanwhile, take a look at this NZ Herald story:
Council votes to sue ex CEO for cost overruns
(see Comments to article, fascinating! suing of Audit NZ and OAG pending)

Think again, DCC.

Posted by Elizabeth Kerr

8 Comments

Filed under Business, Carisbrook, Citifleet, CST, DCC, DCHL, DCTL, Delta, Democracy, DVL, DVML, Economics, Highlanders, Media, New Zealand, NZRU, ORFU, People, Politics, Project management, Property, Queenstown, Site, Sport, Stadiums, Stupidity, Town planning, Urban design, What stadium