DCC Citifleet COVERUP #screwy

DCC logo (fraud) 2

Police have decided no-one will be charged after the Citifleet investigation. –39 Dunedin News

Read tomorrow’s Otago Daily Times.

Only +152 city council fleet vehicles went west, car parts, tyres, kickback auto services, and just one man died.

HE DID IT. Ain’t it cosy.

█ For more, enter the terms *citifleet*, *bachop*, *bidrose* or *vandervis* in the search box at right.

Posted by Elizabeth Kerr

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22 Comments

Filed under Business, Citifleet, DCC, Economics, Events, Media, Name, New Zealand, OAG, People, Police, Politics, Project management, Property, SFO, Site

22 responses to “DCC Citifleet COVERUP #screwy

  1. Hype O'Thermia

    Police, gotta love ’em. Mr Magoo Inc when it comes to “an inconvenient crime” with a splendidly convenient dead perp.
    Solved already, folks! The afternoon tea mallowpuffs are on me!
    When do I get my knighthood for services to undercarpet brushwork?

  2. Peter

    We know that police can and have charged people with receiving stolen property. The key is proving they knew. But….but….if you buy a car that is well below market value, wouldn’t it be obvious the car, in this instance, is hot. How about the family who bought a large number of hot cars? Why weren’t they made to account fully?
    Were there prominent people involved? If so, why would coverup not be a good option? We know from experience authorities buckle under pressure when the message is given to drop it.

    • Gurglars

      Peter, it’s not only receiving, it is a crime to associate with/ condone a known criminal. That means every person who knew about Bachop’s activities was in fact in breach of the law. Most of the DCC were so aware about Bachop’s ex boss that not to know about Bachop’s activities is either a nonsense or else the DCC employees were just plain dills which suggests that as dills they were overpaid.

      So their choice, criminals and be locked up or dills And have their wages cut.

  3. Gurglars

    Bachop parked em, drove them, sold them, managed the paperwork etc etc. The real question is-

    How many other managers, team leaders, overpaid flunkeys had such extra time on their hands to manage private activities in addition to their supposed brief for which they were employed?

    Well we know that there were 550,000 hits on one website, who knows how much other time was stolen from the DCC and ratepayers.

    It is absolutely certain that the “managers” team leaders are not managing. Perhaps they lead their teams in accessing Trade Me.

  4. Elizabeth

    Received.

    From: New Zealand Police
    Sent: Thursday, June 25, 2015
    To:
    Subject: Dunedin CityFleet investigation complete
     
    Safer Communities Together

    Hi …….
    “Dunedin CityFleet investigation complete”
    Southern District Police have completed their investigation into the fraud involving the Dunedin City Council vehicle fleet.
    As a result of this, Police have found there is insufficient evidence to prosecute any party in this matter.
    Part of the Police investigation included staff looking into all aspects of the Deloitte Report including the fraudulent disposal of Council vehicles and the use of Council Credit Cards.
    Police note that Brent Bachop, who is believed to be the sole person responsible, died suddenly on 21 May 2014.
    ENDS
    Released by Inspector Jason Guthrie, Area Commander Otago Coastal
    Media please note Police will not be doing any interviews in relation to this statement
    You can also view this release, including any additional images, online at: http://www.police.govt.nz/news/release/dunedin-cityfleet-investigation-complete
    Thanks,
    New Zealand Police
    This email was sent to …….
    *** This is an automatically generated email, please do not reply. ***

  5. Elizabeth

    Citifleet isn’t over, folks.

    Months ago, LAST YEAR IN FACT, Det Preece said there would be no prosecutions, so what happened between then and now for massage between all the main players.
    PLEASE EXPLAIN

    There was/is more than one Deloitte report for Citifleet – Deloitte made sure of it. The report often referred to (and little seen) is accompanied by digitised files. How deeply have they been buried.

    DCC seems to be having a file problem across all potential invoice frauds.
    A BOX HERE A BOX THERE.

  6. Calvin Oaten

    This whole exercise makes Deloitte look like ‘pussy cats’. This of course raises the question, why bother having their input at our cost when it is obviously being sidelined by the DCC officials? Whether it is true or not this leaves a whole aura of corruption.

    Obviously, from Cr Vandervis’ information, going back to 2011; with him receiving all manner of comments from the motor trade suggesting non businesslike trading in motors and parts by the department. The acknowledged fact that there were up to 152 vehicles disposed of without records showing that this was done correctly. For this to be sheeted home to just one deceased person unaided and single handedly over those years is drawing the bow just a tad too far.

    With the work done by Deloitte it is difficult to understand why CEO Sue Bidrose gave the police such a narrow brief to investigate, if in fact she did. It is equally difficult to understand how the police could not feel uncomfortable about the placement of many of these vehicles reputedly several to just one party or family without ‘wondering’. We are not talking about just a few. Imagine if you will, 150 vehicles all lined up side by side, they would just about take up a block. And we are told it is all down to that one deceased person who mysteriously ‘spirited’ them all away with no documented evidence as to where.

    If in fact the documentation was there, it would have been a simple exercise to verify the whereabouts of each and every one of them, what their residual book value was and what they realised at disposal relative to market value. This of course would all be in Deloitte’s report if they had done their job, and no doubt they would have. Their professional reputations would demand that. The police? Not so sure. Were they asked, or instructed to confine their investigations, or were they just diffident about the whole issue.

    Again, if the whole thing can be sheeted back to just one person how does that explain why so many upper echelon management people took early leave or were given the hint to do so. Why did Tony Avery the ‘top dog’ feel so inclined to fall on his sword if there was no-one else but the deceased culpable? Whatever, the way it is now the ratepayers are ‘billed’ again and left carrying the losses.

    The people have every right to feel that they have been seriously short-changed by both our elected representatives and the management on this issue. There needs to be a lot more serious questions asked of CEO Sue Bidrose. But who is to do it? The obvious person is the Mayor Dave Cull, if not willingly, then instructed by his elected councillors. After all, when elected, these people take an oath to look after the interests of the people whose welfare depends upon that. It’s time to front up and show some backbone. Unless of course they are in the loop and know the game. Wouldn’t surprise.

  7. Elizabeth

    Received.

    From: Lee Vandervis
    To: Chris Morris, Nicholas George Smith, Adam Walker, Turboshop, Boyd Wilkinson, Ian Telfer, Star, Debbie Porteous, Gordon Anderson, Mike Bird, CENG, Pat Cummings, Kent Duston, Vaughan Elder, Maurice Prendergast, Paul Orders, Mark Price, Elizabeth Kerr, Martin Legge, Wayne Idour, Tim Hunter, Simon Hartley, Ian Wishart, Paul Gorman, Eric Frykberg, Leon Everitt
    Date: 11:14 pm 25/06/15
    Subject: Re Police investigation finally coming to no prosecutions.

    Anybody that honestly believes that a single person committed millions of dollars worth of DCC Citifleet frauds is either unaware of DCC processes or is delusional.

    What I have been allowed to see of the Deloitte reports so far clearly shows that a single person could not possibly have committed the frauds, that destruction of DCC records hampered the Deloitte investigation, that the extent of the frauds was greater than the proven $1.6 million, and that the frauds were made possible by the involvement of a large number of people inside and outside of the DCC.  

    No criminal prosecutions from the Police means that fraudsters inside and outside of the DCC have not been held accountable, and that the only hope of DCC accountability rests with full Deloitte digitised DCC evidence being made available as I have formally requested, so that private prosecutions can proceed.

    The process of the DCC bureaucracy investigating itself using its own Deloitte accountants followed by a belated local Police look at the Deloitte reports had created fears of a self-serving cover up all along, fears which I believe now prove well justified.

    Regards,
    Cr. Lee Vandervis

    The Deloitte report was clear
    On 25/06/15 1:38 PM, “Chris Morris” wrote:

    Hi Lee,
     
    The police have today issued a statement ruling out any charges over the Citifleet fraud, saying Brent Bachop was believed to be the sole person responsible and there was insufficient evidence to charge any other party.
     
    I’d like your comment/reaction to this – I’m chasing all councillors for the same.
     
    Chris.
    [Chris Morris, ODT]

  8. Elizabeth

    Dunedin City Council – Media Release
    DCC continues to improve processes

    This item was published on 25 Jun 2015

    The Dunedin City Council has made considerable changes to its processes since the Citifleet fraud was discovered last year.

    The Dunedin City Council will continue to focus on internal improvements in the wake of today’s Police announcement no prosecutions will take place following their investigation into the Citifleet fraud.

    DCC Acting Chief Executive Officer Grant McKenzie says, “The Police conducted a thorough and detailed investigation, but we are disappointed those who directly profited from the fraud won’t be held to account through the criminal justice system. We appreciate the Police efforts and we can assure ratepayers that although there will be no criminal prosecutions, people within the organisation have been held accountable.”

    Deloitte was engaged by the DCC in May last year to conduct 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 fraud totalled more than $1.5 million and centred 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 wide-ranging Deloitte investigation.

    The report identified several other areas of potentially fraudulent activity, including inappropriate use of DCC fuel cards, purchase of a vehicle for personal use and inappropriate use of DCC vehicles. The Police were asked to investigate any matters arising from the Deloitte report.

    Mr McKenzie says, “The thoroughness of both the Deloitte and Police investigations means we are confident everyone within the DCC who should have been held to account has been.”

    The Deloitte report was clear that a single person committed the fraud in a number of different ways over at least 10 years. The report looked at a range of issues, including the ways the fraud was carried out and internal control failings at the DCC.

    Mr McKenzie says late last year the DCC has completed employment processes relating to a small number of staff. The DCC has received a $1 million insurance payment – the full amount of its insurance cover in this area.

    The organisation is continuing to take significant steps to make sure the appropriate levels of accountability and oversight are now in place.

    “We have been working hard to improve and modernise our processes. This work has been going on for well over a year and is how the Citifleet fraud was uncovered in the first place. We want to have robust systems and processes that protect both employees and the organisation. This will continue to be our focus.”

    Mr McKenzie says a wide range of work has been completed to improve and modernise DCC processes. This includes:

    * the introduction of a new Audit and Risk Subcommittee, with an independent Chair
    * updating the fraud policy and procedures
    * introducing a new internal audit policy
    * updating the asset disposal policy and procedures
    * that all tenders awarded through the DCC Tenders Board are published on the DCC website for greater transparency
    * putting in place a central contracts register
    * updating the ‘whistleblower’ policy
    * a review of fleet card processes and the issuing of cards.

    Further work in progress includes:

    * a fraud awareness campaign and training for staff, which will begin in July
    * recruiting a dedicated Risk and Internal Audit Manager
    * a risk management framework, which is almost complete
    * the development of a new sensitive expenditure policy and procedures
    * the development of new procurement and tendering processes across the DCC.

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

    DCC Link

    ODT: No prosecutions over Citifleet fraud

  9. Mike

    Today’s ODT article where they interview every councillor BUT Lee is a bit telling in its bias

  10. Elizabeth

    ### ODT Online Fri, 26 Jun 2016
    Citifleet: Call for further inquiry
    By Chris Morris
    A call to consider a private prosecution has come amid claims a dead man has become the fall guy for others who profited from the Dunedin City Council’s $1.5 million Citifleet fraud. The call came from Cr Hilary Calvert after Dunedin police announced yesterday nobody would be charged over the council’s decade-long vehicle fraud.
    Read more

  11. Gurglars

    In this article, the council says that a number of employees have resigned of been “let go” through employment processes. So, are they guilty or innocent? And if innocent why did they not take action against the DCC for wrongful dismissal?

    • Mike

      I can imagine the case where an employee figured what was going on but was cowed by his or her boss and didn’t say anything – and didn’t benefit – letting them go might be the appropriate thing to do

      It does seem that there were people who left, and people who were let go – whether that indicates different levels of culpability is hard to tell – it may be that some just saw the writing on the wall and moved on before they were let go.

      On the other hand it’s hard to believe that 150 cars were rorted without anyone else being involved.

      This information is of course exactly what Lee was censured for trying to find out – we still don’t know just what Cull and co were covering up by trying to silence him – I think this is another part of the DCC that needs some light and transparency.

      I do think that the people who inadvertently received stolen cars probably should have at the very least been made to give them back, they have the redress of a civil suit against Bachop’s assets – those who knowingly received them should have been prosecuted for receiving.

      • Simon

        Mike. It is interesting to note who was the last to jump ship. Making sure the decks were cleared, and anyone who might have been able to sink the ship had gone.

      • Hype O'Thermia

        “This information is of course exactly what Lee was censured for trying to find out – we still don’t know just what Cull and co were covering up by trying to silence him.” Interesting point. I often wonder what’s behind the urgency to silence Cr Vandervis. Not just on this matter, either. What’s so dangerous to those people, that they put so much effort into preventing Vendervis getting information, also preventing him saying what he has deduced from what he has seen and heard?
        You’d think they would have enough work to do, doing their own jobs adequately.
        Yet keeping Cr Vandervis gagged, blindfolded and leg-roped seems to be always at the top of their to-do list. Strange priorities?

  12. B M W

    Calvert seems to be saying all the right things at the moment. Provided the cynical vote doesn’t get split between her and Lee I’d say her odds of her becoming the next mayor of Dunedin look pretty good. Much as I admire Lee people find him divisive and the Mr and Mrs Pooters of the world don’t like that. To them he looks high risk. Shame, because he’s probably better option for Dunedin. Still, Calvert? Hmmm…

  13. Calvin Oaten

    Notice that our inveterate ‘master of the ‘glib and stupid’, Richard Thomson, has once again opened his mouth and given the world a glimpse of the greatest ‘egotist’ currently involved in Dunedin’s public affairs. This time it’s not shafting Cr Vandervis nor grasping at a $900 per day opportunity to show the ‘plebs’ just how astute and wise he is around hospital management, nor stealing monies possibly destined for the city’s debt reduction in favour of the Cricket establishment. No, it’s all to do with his wisdom over the “Citifleet” debacle. He says “he could not be disappointed by the police decision as that would “assume there’s someone to prosecute.” What??!! Isn’t the fact that over a number of years 152 vehicles belonging to the city ‘vis’ the ratepayers, had been wrongfully disposed of and the proceeds seemingly purloined, sufficient to expect a prosecution or three? The man then says; “his extraordinarily strong advice” (probably his own) would be to avoid such a costly exercise. “You would have to have an extraordinarily strong case to warrant spending hundreds of thousands of dollars — and that’s what it would be– to progress something like that.” So there we are, case adjourned ‘sine’ die’. With folk like Thomson pontificating within the halls of power who needs be worried? Sheesh!

    {Link added. -Eds}

    • Hype O'Thermia

      Calvin, this Cr Richard Thomson gem of characteristic wisdom leapt out at me too:
      “Cr Richard Thomson said his ”extraordinarily strong advice” would be to avoid such a costly exercise.
      ”You have to have an extraordinarily strong case to warrant spending hundreds of thousands of dollars – and that’s what it would be – to progress something like that.
      ”You would just be chucking very large quantities of ratepayers’ money down the toilet, quite probably.”

      This from the prime avoider of costly exercises, the chucker of ratepayers’ money down the toilet, who at the first whisper of a budget underspend made like Irene van Dyke and scored a goal for professional cricket’s strike a flamin’ light sport rort. Gee thanks Richard, great sense of priorities! Remind me to keep on voting for you.

  14. Mike

    Of course now that they’ve decided one guy did it all the other unanswered question is: will the city be going after Bachop’s assets to recover their loss?

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