Daily Archives: December 18, 2014

DCC: Deloitte report released on Citifleet

██ Deloitte Report – redacted copy (PDF, 3.8 MB)
Project Lewis – Investigation Report

Dunedin City Council – Media Release
Deloitte Report Released

This item was published on 18 Dec 2014

The findings of an independent investigation into a fraud at the Dunedin City Council have been released publicly.

DCC Chief Executive Officer Sue Bidrose says, “The Police have advised their investigation is now at a point where the Deloitte report can be released. We have committed to keeping ratepayers informed and can now make the findings of the report public.”

Deloitte was engaged by the DCC in May to launch an investigation after staff identified what appeared to be a discrepancy in the number of Citifleet vehicles when implementing new financial procedures related to DCC assets. The alleged fraud totals more than $1.5 million and centres on the DCC receiving no proceeds from the sale of 152 vehicles from the DCC’s vehicle fleet. A formal complaint was laid with the Police in August following the Deloitte investigation. The Police were asked to investigate any matters arising from the Deloitte report.

Ms Bidrose says she cannot comment on the Police investigation.

Commenting on the Police investigation, Dunedin Clutha Waitaki Area Commander Inspector Jason Guthrie says, “This is a complex series of offending involving the significant misappropriation of DCC assets. There are a number of aspects to the Police investigation and whilst it is well progressed, it will be subject to a final review in the new year.”

The Deloitte report looks at a range of issues, including the ways the fraud was carried out and internal control failings at the DCC. Some parts of the report have been redacted for privacy reasons.

Ms Bidrose says, “The Deloitte report is clear that a single person committed the fraud in a number of different ways over an extended period of time. The fact this could happen was an indictment on our business processes and we have made considerable efforts to improve and modernise these. This work was already underway and was how the fraud was uncovered. Measures have been, and continue to be, taken to make sure the appropriate level of accountability and oversight is in place in the future across the organisation. We are committed to continuing our programme of work to ensure we have best practice across the board.”

[STOP. Who aided, abetted and benefitted from the deals ???]

Ms Bidrose says the DCC has completed all the employment processes identified in the Deloitte report. These relate to a small number of staff, but she will not be discussing individual employment matters in public. The DCC has received a $1 million insurance payment following the Citifleet fraud. The DCC had $1 million fidelity insurance and insurers QBE have paid out the total amount, in two separate payments.

Mayor of Dunedin Dave Cull says, “The Council has pushed for more transparency and tighter processes, with the clear aim of becoming a best practice public sector organisation. We totally support the work senior management has been carrying out and the changes which have resulted from this scrutiny.”

Ms Bidrose says a wide range of work has been completed to improve and modernise DCC processes, including:
● The introduction of a new Audit and Risk Subcommittee, with an independent Chair.
● All tenders that are awarded through the DCC Tenders Board are published on the DCC website for greater transparency.
● A central contracts register has been put in place.
● The ‘whistleblower’ policy has been updated.
● A review of fleet card processes and the issuing of cards.

Further work in progress includes:
● The appointment of a dedicated Risk and Internal Audit Manager. This position has been advertised.
● A fraud awareness campaign and training for all staff will begin in the new year.
● A risk management framework, which is almost complete.
● The development of new procurement and tendering processes across the DCC.

█ A copy of the redacted report is available at http://www.dunedin.govt.nz/deloittereport

Background
Citifleet is responsible for the management of all DCC vehicles and the operation of an internal courier service. The fleet includes cars, trucks, motorcycles, vans and various trailers, plant and machinery. There are currently 122 vehicles, but the DCC is in the process of reviewing whether all those vehicles are required.

Contact Graham McKerracher, Communications and Marketing Manager on 027 294 6301. DCC Link

Deloitte report detail 2.14[screenshot]

Posted by Elizabeth Kerr

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

University of Otago —um Harlene, what you sellin’ now, girl?

Perhaps you shoulda stopped at the ballet boys. Or dropped the watery “Hello”. But if you’re REALLY good, Santa will bring you some kiwi elocution lessons to rid the ‘broad-ness’.

University of Otago Published on Dec 14, 2014

Selwyn Ballet and Vice-Chancellor’s Christmas Greeting
Watch a day in the life of members of the University of Otago’s Selwyn Ballet troupe, followed by a Christmas message from the University’s Vice-Chancellor Professor Harlene Hayne.

First convened in 1928, the Selwyn Ballet is the second oldest amateur ballet troupe in the world, and certainly the oldest all-male one. It began as a Capping Show performance intended to take-off popular London musicals of the time but by 1937 the ballet had become a tradition of Selwyn College and more of a spoof of classical ballet. The Selwyn Ballet has also performed prior to international rugby matches at the Dunedin stadium.

http://selwyn.ac.nz/discover/heritage-and-traditions

****

All preceded by the University’s Scrooge message at ODT yesterday:

“The university would prefer to take extra time to ensure planning, design, estimates and approvals are carried out to a very high standard.”
–Barry MacKay, Property Services

### ODT Online Wed, 17 Dec 2014
University delays building
By Vaughan Elder
The University of Otago has delayed the start of construction on two of the largest buildings in its more than $600 million building programme.
Construction on both the replacement dental school – previously estimated to cost between $50 million and $100 million – and science precinct redevelopment were scheduled to begin next year, but have now been delayed until early 2016, dependent on completion of designs, and approval by the university council.
Read more

● It was possible the Portobello Aquarium and Commerce Building redevelopment would start next year.

Posted by Elizabeth Kerr

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Filed under Business, Construction, Economics, Media, Name, New Zealand, People, Politics, Project management, Property, Site, University of Otago, What stadium