Tag Archives: Brent Bachop

DCC Citifleet: Coroner’s report out

### ODT Online Wed, 16 Dec 2015
Coroner rules on Citifleet manager’s death
By Chris Morris
The man at the centre of the Dunedin City Council’s $1.5 million Citifleet fraud took his own life after being approached about the fraud, a Coroner has ruled.
Brent Bachop, the council’s Citifleet manager, died on May 21 last year, nearly a week after first being approached about irregularities within his department on May 15.
Read more

█ For more enter the term *citifleet* in the search box at right.

Posted by Elizabeth Kerr

8 Comments

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

[Stuff] Citifleet: court proceeding

Updated (via Hamish McNeilly/Fairfax Media)
Wed, 18 Nov 2015 at 3:20 p.m.

█ Court date pushed back to February.

Civil proceedings against Maria Frances Smith were due to be heard at the High Court in Dunedin tomorrow morning, with the council listed as the plaintiff, but the case has been adjourned until February 4.

Link received from Fairfax Media.

### Stuff.co.nz Last updated 14:07, November 18 2015
Dunedin City Council to take widow of sole Citifleet suspect to court
By Hamish McNeilly
The Dunedin City Council has launched civil proceedings against the widow of the man believed to be responsible for the $1.5 million Citifleet fraud. The council lodged the proceedings against Maria Frances Smith, the widow of Brent Bachop, with the Dunedin High Court. A hearing, understood to be about Bachop’s estate, was originally set down for Thursday but will now happen in February.
Read more

Posted by Elizabeth Kerr

23 Comments

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

Citifleet investigation: Final police report 29.10.15

(via OIA) Copy of final report of the NZ Police investigation into Citifleet.
The information released is the same as given to media outlets on Thursday, 5 November.

[poor copy as supplied; heavily censored]

CITIFLEET POLICE REPORT Final 29.10.15 (PDF, 2 MB)

Letter, NZ Police 9Nov2015

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

Posted by Elizabeth Kerr

5 Comments

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Stuff: Police release final Citifleet report

Updated.
Fri, 6 Nov 2015 at 2:40 p.m.

Over an 11-year period, 152 vehicles were unaccounted for, while more than $100,000 was misappropriated on a council fuel card.

### Stuff.co.nz Last updated 16:21 05/11/2015 | 11:34 05/11/2015
No-one charged with $1.5m Dunedin council fraud case
By Hamish McNeilly
No-one will be charged with the $1.5 million Dunedin City Council Citifleet fraud, a final police report reveals. Dunedin Police have released the final report into the fraud, involving the theft of more than 150 council vehicles and misused fuel cards, after the earlier release of an investigation report to Fairfax Media. That report was reviewed by Detective Senior Sergeant Malcolm Inglis, who concluded there was “insufficient evidence to charge any of the purchasers of the vehicles with the offence of receiving”.

“No other charges have been identified.” –Police report

Deloitte interviewed 62 people in relation to the theft of the vehicles from the council and the “majority of those persons were council employees”, the police report said.
● The council was expected to release a response to the police report on Thursday afternoon.
Read more

ODT: Police review backs Citifleet decision
No comments allowed.

Posted by Elizabeth Kerr

6 Comments

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DCC Citifleet: Redactions redactions

enJOY it by Elise Blaha Cripe [eliseblaha.typepad.com] detail

Det Snr Sgt Inglis’ review (February 2015) stretched to four pages, but about half its contents were blacked out prior to being released.

### ODT Online Thu, 15 Oct 2015
Citifleet review findings blacked out
By Chris Morris on Thu, 15 Oct 2015
An internal review of the initial police investigation into the $1.5 million Citifleet fraud has made several findings, but exactly what they are remain under wraps. Months after the conclusion of the investigation Dunedin police last week released a heavily redacted copy of the review to the Otago Daily Times.
Read more

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

Posted by Elizabeth Kerr

*Image: eliseblaha.typepad.com – enJOY it by Elise Blaha Cripe [detail]

1 Comment

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DCC Citifleet: Police finishing final report

DCC logo (fraud) 2

### ODT Online Wed, 16 Sep 2015
Final Citifleet fraud report not finished
By Chris Morris
Dunedin police are still working to finalise a report into the $1.5 million Citifleet fraud, despite announcing in June no charges would be laid, it has been confirmed. The development came as it was confirmed an earlier police report into the Dunedin City Council’s long-running fraud was released to media despite internal concerns from senior police it was out of date, emails showed.
Read more

● The Department of Internal Affairs was keeping a close eye on the Dunedin City Council’s handling of the Citifleet fraud investigation, documents show. (ODT)

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

Posted by Elizabeth Kerr

5 Comments

Filed under Business, Citifleet, DCC, Democracy, DIA, Economics, Media, Name, New Zealand, OAG, Ombudsman, People, Police, Politics, Project management, Property, SFO, Site, What stadium

Fairfax Media: Police release Citifleet investigation report

Updated post
Wed, 12 Aug 2015 at 4:50 p.m.

██ CITIFLEET POLICE REPORT (PDF, 4.41 MB) —via Fairfax Media

The detective, who has since left the police force, also noted the council did not supply Bachop’s credit card or fuel card statements as requested.

### Stuff.co.nz Last updated 13:08, August 12 2015
Police raised possibility of others involved in Dunedin City Council Citifleet fraud
By Hamish McNeilly
It had been billed as the work of a sole suspect, but a police file into the investigation of the theft of 152 cars from the Dunedin City Council fingers the “highly suspicious” activity of another unnamed person. Police have released to Fairfax Media their investigation report into the Citifleet fraud.
Read more

Previous articles:
18.12.14 Stuff: Car fraud pinned on dead man
3.6.14 Stuff: Dunedin council unit under scrutiny

[screenshot – click to enlarge]

Email 12.8.15 - Hamish McNeilly Fairfax Media Dunedin Bureau Chief

█ For more, enter the terms *citifleet*, *conduct* and *vandervis* in the search box at right.

Posted by Elizabeth Kerr

55 Comments

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

DCC Citifleet, [a] Deloitte report leaked

DCC logo (fraud) 2

WHY WASN’T THE SERIOUS FRAUD OFFICE CALLED IN RIGHT FROM THE VERY START WHEN CR LEE VANDERVIS ALERTED FORMER DCC CHIEF EXECUTIVE PAUL ORDERS TO CAR FRAUD ???

Then too, think of all the people who had access to the Deloitte reports (plural) – more specifically those without access to the digitised data report. That ‘narrows’ the field of leaks to Deloitte itself, NZ Police, private investigators, counsel, privileged council staff, privileged mayor and (some) councillors, those council staff whose lawyers worked on their ‘resignations’ / exit packages….
Who else? A veritable feast.

No-one named in the ODT today hasn’t been mentioned at What if? posts and comments previously – this includes the names of the car companies.

### ODT Online Sat, 4 Jul 2015
Questions still unanswered
By Chris Morris
[…] even after reading Deloitte’s full “Project Lewis” investigation report – the Otago Daily Times was leaked a copy – there are still many unanswered questions … [The report] named members of three Dunedin families who, together, bought dozens of council-owned cars … Those names included Wayne McFadyen, Destry Duff and Shayne Perkins and members of their extended families, who between them bought 42 vehicles, Deloitte found.
Read more

****

Anngow Motors was sold in 2007 to Armstrong Mazda, which was, in turn, sold to Dunedin City Motors in 2009.

### ODT Online Sat, 4 Jul 2015
Long list of car deals
By Chris Morris
Council cars bought and sold within days, and handfuls of cash that disappeared without trace are detailed in Deloitte’s full report into the $1.5 million Citifleet fraud. The report outlines a long list of transactions between former Citifleet team leader Brent Bachop, private buyers and Dunedin car dealers dating back more than a decade.
Read more

****

“Mr Bachop or Mr McFadyen kept a significant proportion of the sale proceeds for these vehicles,” the [Deloitte] report said.

### ODT Online Sat, 4 Jul 2015
Nothing to hide, says car buyer
By Chris Morris
Wayne “Tubby” McFadyen says he has nothing to hide. Instead, the man identified as one of the main buyers of Citifleet vehicles says the Dunedin City Council should be looking “in the mirror” if it wants to point the finger. “If there’s anyone to blame, it all falls on their heads too. They can blame everyone else for buying vehicles and whatever they want to do, but at the end of the day the buck stops with them.”
Read more

█ For more, enter the terms *citifleet*, *conduct* and *vandervis* in the search box at right.

Posted by Elizabeth Kerr

31 Comments

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

Code of Conduct show trial

Updated post
Fri, 27 Nov 2015 at 11:17 p.m.

Recently, Daaave Cull – he who cannot keep a true and proper Council minute record (as the Ch39 videos demonstrate) – ran an evil-illegal ultra vires punitive Code of Conduct campaign against Cr Lee Vandervis.

code of conduct cartoon (30-6-15)Mad Hatter 30.6.15 [click to enlarge]

Douglas Field Republished Aug 17, 2016
Mad Hatter’s ‘Show Trial’ of Lee Vandervis revised 10 7 15

Posted by Elizabeth Kerr

4 Comments

Filed under Business, Citifleet, DCC, Democracy, Design, Economics, Events, Name, New Zealand, OAG, People, Pics, Police, Politics, Project management, Property, SFO

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

22 Comments

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

Citifleet: ‘Checkpoint’ interviews Dave Cull

### radionz.co.nz Thu, 18 Dec 2014
Checkpoint with Simon Mercep
Report reveals how car manager ripped off Dunedin council
17:20 An investigation into the Dunedin City Council’s missing cars has named Citifleet team leader Brent Bachop (bok-ip) as the man at the heart of the one and a half million dollar fraud. A Deloitte report released this afternoon details how he transferred vehicles to his name and sold them on, including some to fellow staff and councillors. It slams the council for not detecting the fraud sooner. Brent Bachop died suddenly in May. With us now is Dunedin’s mayor Dave Cull.
Audio | Download: OggMP3 ( 4′ 21″ )

Received from Lee Vandervis
Tue, 16 Jun 2015 at 10:00 p.m.

Thank you for this audio. In it Mayor Cull says that none of the managers in charge at the time of the Citifleet frauds are still at the DCC. Has he forgotten that Dr Bidrose is still there?

Mayor Cull also says that the frauds were discovered and investigated in the last year. Has he forgotten that I had discovered and was investigating Citifleet frauds since 2011, and that senior staff were prompted by me to investigate then but apparently allowed themselves to be fobbed off by the most superficial denials from some of the perpetrators themselves?

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

Posted by Elizabeth Kerr

3 Comments

Filed under Business, Citifleet, DCC, Economics, Hot air, Media, Name, New Zealand, People, Police, Politics, Project management, Property, SFO, Site, What stadium

Tony Avery is “somebody’s” pet #gigatown lapdog

Tony Avery 3 Infrastructure and Networks General Manager Tony Avery resigned from Dunedin City Council on 28 August 2014, falling on his sword as a result of the Citifleet/Citipark fraud —something, the Council conveniently brushes under its carpet with ALL BLAME politically attaching (for insurance purposes) to the deceased former Citifleet manager Brent Bachop. Other council staff were clearly involved; one person alone does not dispose of 152+ cars, and related council assets. So Mr Avery, WENT…. But not really.
With all the scandal and corruption appearing, the Council supportively, extended “help” and salary repeatedly to Mr Avery, after initial news that he would work through to Christmas. Then, on Saturday 31 January the Council revealed that: “He would continue working fulltime, assisting [Ruth] Stokes and helping with the transition on key projects, until March 31, [Sue] Bidrose said.” (ODT 1.2.15).

But the latest DCC blinder:

“Tony Avery’s new gig (pun intended)
Helping Gigatown Dunedin secure sources of funding…”

Updated post 16.4.16
15.5.15 ODT: City readies to take advantage of Gigatown
Last month, [the Digital Community Trust] employed former Dunedin City Council infrastructure and networks general manager Tony Avery as interim project manager.

DCC Pets. Pet Projects. NO COUNCIL SHAME.
How do we define corruption, again.

Related Post and Comments:
12.1.15 Traffic lights: Anzac Avenue/Frederick Street intersection
29.12.14 DCC gets QLDC talent…. the weft and warp deviously weaves
6.11.14 DCC pals up with Chorus —gigatown and telecoms cabinets
9.10.14 DCC’s Daaave at university bollard, in his twilight
28.8.14 DCC: Tony Avery resigns
5.6.14 DCC Transport Strategy and Riccarton Road
22.5.14 DCC Transportation Planning —ANOTHER consultation disaster
24.4.14 DCC promotes Riccarton Rd as sole heavy traffic bypass
29.10.13 DCC (EDU) invents new job! —Gigatown/Digital Office
20.11.12 DCC vs Anzide Properties decision: The road “has no legal basis”

█ For more, enter the terms *citifleet*, *sh88*, *anzide*, *cycle*, *parking* or *riccarton* in the search box at right.

Posted by Elizabeth Kerr

*Image: Tony Avery tweaked by whatifdunedin

9 Comments

Filed under Business, Citifleet, DCC, Economics, Enterprise Dunedin, Name, New Zealand, People, Pics, Politics, Project management

Vandervis: Deloitte and Police Citifleet investigations

Received from Lee Vandervis
Fri, 19 Dec 2014 at 11:54 a.m.

Deloitte and Police Citifleet Investigations – information I believe should be public in the public interest.

Message: I have had verbal and email responses from both CEO Bidrose and the Police denying that the scope of the Police investigation had been limited to missing or inappropriately sold DCC vehicles. These responses remain confidential currently because of other content they contain.
The fact remains that the investigating officer Detective Matthew Preece was adamant when he interviewed me on what I understood to be the last week of his investigation that he was not able to pursue my concerns of wider fraud other than missing vehicles, such as allegations regarding DCC contracts, and credit card and other financial spending fraud, because the complaint laid related just to missing vehicles.
Even more concerning was Detective Preece’s assertion to me that ‘all those that had acquired DCC vehicles needed to do, was to say that they understood Mr Bachop had the authority to dispose of them’ for them not to be liable for receiving or criminal prosecution. Detective Preece said that all those he had interviewed who had acquired DCC vehicles had said just that.

My worst fears that the tragic death of Mr Bachop would not be used to fully investigate the wider implications of a DCC staff self-serving culture were confirmed by the very limited scope of the belated Police investigation as relayed to me by Detective Preece. I wrote the following email to CEO Bidrose, Sandy Graham head of Governance, and Detective Mathew Preece that night. No demurring or other response to the email below has been received from Detective Preece.

Regards,
Cr. Vandervis

From: Lee Vandervis
Date: Tue, 11 Nov 2014 22:57:31 +1300
To: Sue Bidrose [DCC], Sandy Graham [DCC], Matthew Preece [NZ Police]
Conversation: Police Citifleet Investigation
Subject: Police Citifleet Investigation

Dear Sue,

An hour and a half spent with Detective Matthew Preece and another Policeman called Regan has left me with deep concerns regarding the Police Citifleet investigation.
Mr Preece has informed me that the scope of his investigation has been limited by the complaint the DCC has made to the Police, and that this complaint only concerns missing or inappropriately sold DCC vehicles.

Mr Preece says that because Police have not had a complaint from you or the DCC regarding;
– fraudulent Citifleet tender processes,
– fraudulent Citifleet tyre supply contracts,
– fraudulent Citifleet maintenance contracts
– fraudulent use of DCC Citifleet vehicle fuel
– fraudulent DCC accounting of Citifleet credit cards and other payment methods used and Citifleet managerial oversight
– and fraudulent use and conversion of DCC Citifleet vehicles [eg the conversion of a DCC-owned vehicle by Mrs Bachop]

and that consequently none of these fraud areas is being investigated!

Mr Preece did say that if you as CEO were to request that he broaden his investigation to include these other areas and not just the missing cars, that he would broaden his enquiry to include them. He insisted that he would have to have a broadened complaint from you as CEO for this to happen, and implied that a complaint from me as a City Councillor would not be enough to act on.

I have highlighted to Preece and Regan the urgent need to use the Citifleet manager’s tragic death to investigate and prosecute all Citifleet fraud areas, as a failure to do so will result in the loss of an unprecedented opportunity to clean out the culture of entitlement at Citifleet and in other DCC departments.

Can you please with urgency broaden the DCC complaint to include the 6 areas of potential Citifleet fraud listed above, so that Mr Reece can broaden his enquiry to include them.

Can you please also now with urgency, forward to me all instructions to Deloitte regarding the Citifleet investigation as previously requested in my email of 26/10/14 as below.

Is it possible to meet with you at any time tomorrow at your convenience to learn whether you have broadened the DCC Police complaint or not?

Kind regards,
Cr. Lee Vandervis

From: Lee Vandervis
Date: Sun, 26 Oct 2014 18:23:41 +1300
To: Sue Bidrose [DCC], Sandy Graham [DCC]
Conversation: LGOIMA requests
Subject: LGOIMA requests

Hi Sue,
Further to my verbal requests of a week or two ago please forward copies of all original correspondence and or other direction given to Deloittes in regard to their investigation of Citifleet.
I wish to have the original brief stating the terms of reference, the subsequent brief where the investigation needed to be extended, and any other direction written or otherwise given to Deloittes regarding the Citifleet investigation.
I am deeply disturbed by what I have seen in parts of the investigation conclusions appearing without covering page or any details identifying them as parts of the Deloitte findings in non-public parts of the Audit and Risk subcommittee meetings.
I note a severe slowing on responses to my recent LGOIMA requests, and hope this has been a temporary frustration.
Kind regards,
Cr. Lee Vandervis

Posted by Elizabeth Kerr

12 Comments

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

DCC Citifleet by email . . . . woops! (another timeline proof)

Received from Lee Vandervis
Thu, 18 Dec at 11:35 p.m.

Message: I have spoken with Michael Allan at Radio NZ tonight. I have also sent him a selection of emails from 2011, which I also sent to Kyle Cameron of Deloitte and to Mathew Preece of the Dunedin Police and which I will now copy to you.

[five threads follow]

I —Info re Brent Bachop

From: Lee Vandervis
Date: Thu, 18 Dec 2014 23:30:47 +1300
To: Michael Allan [Radio NZ]
Conversation: Info re Brent Bachop
Subject: FW: Info re Brent Bachop

From: Lee Vandervis
Date: Mon, 10 Nov 2014 18:27:17 +1300
To: Matthew Preece [NZ Police]
Conversation: Info re Brent Bachop
Subject: FW: Info re Brent Bachop

From: Lee Vandervis
Date: Thu, 05 Jun 2014 14:21:24 +1200
To: Kyle Cameron [Deloitte]
Conversation: Info re Brent Bachop
Subject: FW: Info re Brent Bachop

****

—— Forwarded Message
From: Lee Vandervis
Date: Tue, 08 Nov 2011 22:56:17 +1200
To: Sandy Graham [DCC]
Conversation: Info re Brent Bachop
Subject: Re: Info re Brent Bachop
G’day Sandy,
Thank you for the limited response you have given me to below. I still hope to get 2007, 2008 and 2009 credit card spending details as per those already provided for 2010.
Regarding “spending by Brent Bachop, especially September 2007. I wish to have the details confirmed on a purchase of Falken tyres size 195/65-15 as fitted to an Alfa Romeo.” is it possible that these tyres may have been paid for by some other method that still ended up on the ratepayers’ account? Please advise if I have to discover the registration plate number of the particular Alfa Romeo to get the information on who paid for this set of tyres.
Re purchase of Mazda Bounty vehicle that it is alleged Mr Bachop sold to himself, surely complete information on this type of transaction must be on Council records?
Looking forward,
Lee

On 14/10/11 10:21 PM, “Lee Vandervis” wrote:
Hi Sandy,
Sorry to keep coming back with this, but the info required has been difficult to tease out.
Thank you for 2010 DCC credit card spending list.
I am now looking for 2007 credit card spending by Brent Bachop, especially September 2007. I wish to have the details confirmed on a purchase of Falken tyres size 195/65-15 as fitted to an Alfa Romeo.
Could you also forward 2008 and 2009 credit card spending.
Also of interest is the sales, sale prices and sold-to information on the sales of all Mazda Bounty vehicles, especially one that Mr Bachop allegedly sold to himself.
Sorry I have no dates for this, but the vehicle type, Mazda Bounty should hopefully be enough to establish DCC ownership and subsequent disposal.
Re DCC vehicle disposals, can you confirm which business or businesses the DCC disposes of fleet vehicles through currently, and which businesses have been used in the last 5 years.
In case you are wondering, these info requests are not fishing expeditions but responses to repeated allegations form a number of Dunedin businesses, many focused on Mr Bachop.
I have had no personal dealings with Mr Bachop and do not even know what he looks like.
Kind regards,
Lee
—— End of Forwarded Message

II —Info re Brent Bachop

From: Lee Vandervis
Date: Thu, 18 Dec 2014 23:29:22 +1300
To: Michael Allan [Radio NZ]
Conversation: Info re Brent Bachop
Subject: FW: Info re Brent Bachop

From: Lee Vandervis
Date: Mon, 10 Nov 2014 18:27:41 +1300
To: Matthew Preece [NZ Police]
Conversation: Info re Brent Bachop
Subject: FW: Info re Brent Bachop

From: Lee Vandervis
Date: Thu, 05 Jun 2014 14:15:31 +1200
To: Kyle Cameron [Deloitte]
Conversation: Info re Brent Bachop
Subject: FW: Info re Brent Bachop

****

—— Forwarded Message
From: Sandy Graham [DCC]
Date: Tue, 1 Nov 2011 11:02:33 +1300
To: Lee Vandervis
Subject: RE: Info re Brent Bachop
Dear Lee
Just an update on this.
I should have the purchase card info this afternoon and will flick it onto you.
Sandy

From: Lee Vandervis
Sent: Friday, 14 October 2011 11:21 p.m.
To: Sandy Graham
Subject: Info re Brent Bachop
Hi Sandy,
Sorry to keep coming back with this, but the info required has been difficult to tease out.
Thank you for 2010 DCC credit card spending list.
I am now looking for 2007 credit card spending by Brent Bachop, especially September 2007. I wish to have the details confirmed on a purchase of Falken tyres size 195/65-15 as fitted to an Alfa Romeo.
Could you also forward 2008 and 2009 credit card spending.
Also of interest is the sales, sale prices and sold-to information on the sales of all Mazda Bounty vehicles, especially one that Mr Bachop allegedly sold to himself.
Sorry I have no dates for this, but the vehicle type, Mazda Bounty should hopefully be enough to establish DCC ownership and subsequent disposal.
Re DCC vehicle disposals, can you confirm which business or businesses the DCC disposes of fleet vehicles through currently, and which businesses have been used in the last 5 years.
In case you are wondering, these info requests are not fishing expeditions but responses to repeated allegations form [sic] a number of Dunedin businesses, many focused on Mr Bachop.
I have had no personal dealings with Mr Bachop and do not even know what he looks like.
Kind regards,
Lee
—— End of Forwarded Message

III —Councillor Vandervis question about tyres

From: Lee Vandervis
Date: Thu, 18 Dec 2014 23:27:51 +1300
To: Michael Allan [Radio NZ]
Conversation: Councillor Vandervis question about tyres
Subject: FW: Councillor Vandervis question about tyres

From: Lee Vandervis
Date: Mon, 10 Nov 2014 18:28:26 +1300
To: Matthew Preece [NZ Police]
Conversation: Councillor Vandervis question about tyres
Subject: FW: Councillor Vandervis question about tyres

From: Lee Vandervis
Date: Thu, 05 Jun 2014 14:11:32 +1200
To: Kyle Cameron [Deloitte]
Conversation: Councillor Vandervis question about tyres
Subject: FW: Councillor Vandervis question about tyres

****

—— Forwarded Message
From: Kevin Thompson [DCC]
Date: Mon, 26 Jun 2006 16:55:33 +1200
To: Lee Vandervis
Cc: Brent Bachop [DCC]
Subject: FW: Councillor Vandervis question about tyres
Good afternoon.
At the Finance & Strategy Meeting this afternoon I was incorrect in saying we go out to tender for the supply of tyres — as stated below we work through the GSB to get the best discounted rate — my apologies for putting you wrong on this point.
At the time I was thinking of our tendering process for the mtce and servicing of the vehicles which is going out for tender next year.
If you would like to further discuss this please give me a call.
regards,
Kevin

—–Original Message—–
From: Brent Bachop [DCC]
Sent: Monday, 26 June 2006 4:31 p.m.
To: Kevin Thompson [DCC]
Subject: Councillor Vandervis question about tyres
Kevin
In answer to the queries you had from Councillor Vandervis about the purchase of tyres.
Citifleet spend under $50,000 annually so we are not required to go to tender.
All tyres are purchased locally from Bridgestone NZ (trading as Firestone) through GSB Supply Corp (formally the Government Stores Board) giving us nation wide buying power so we get our tyres and repairs at a heavily discounted rate.
Most large Council’s and the likes of the Police etc use GSB not only for tyres but fuel as well as do we.
We have in the past used other suppliers but none of them could match the service and buying power we get through GSB.
I have looked into using other suppliers as recently as last Friday and after working through this issue with the Expenditure Manager in the Finance department we both came to same conclusion that Firestone is the best option for us at this point in time.
All tyres purchased are done so using our Fleetcard system.
Let me know if you need any more info.
Brent
—— End of Forwarded Message

IV —Turners Auctions problems encountered trying to deal with DCC and Brent Bachop

From: Lee Vandervis
Date: Thu, 18 Dec 2014 23:26:31 +1300
To: Michael Allan [Radio NZ]
Conversation: Turners Auctions problems encountered trying to deal with DCC and Brent Bachop
Subject: FW: Turners Auctions problems encountered trying to deal with DCC and Brent Bachop

From: Lee Vandervis
Date: Mon, 10 Nov 2014 18:29:10 +1300
To: Matthew Preece [NZ Police]
Conversation: Turners Auctions problems encountered trying to deal with DCC and Brent Bachop
Subject: FW: Turners Auctions problems encountered trying to deal with DCC and Brent Bachop

From: Lee Vandervis
Date: Wed, 04 Jun 2014 22:14:44 +1200
To: Kyle Cameron [Deloitte]
Conversation: Turners Auctions problems encountered trying to deal with DCC and Brent Bachop
Subject: FW: Turners Auctions problems encountered trying to deal with DCC and Brent Bachop

****

—— Forwarded Message
From: Vivienne Harvey [DCC]
Date: Fri, 11 Nov 2011 08:17:33 +1300
To: Paul Orders [DCC], Lee Vandervis
Subject: RE: Turners Auctions problems encountered trying to deal with DCC and Brent Bachop
Hi Lee
I have checked the diary for 30 November and Paul can fit a meeting in with Turners and yourself at 11.00 am that day or 1.00 pm. Due to the Community Development Committee at 2.00 pm that day and a Maori Participation Working Party meeting at 5.00 pm there is no other time in the afternoon.
Who else do you want in attendance at the meeting?
Thanks
Vivienne

From: Paul Orders
Sent: Friday, 11 November 2011 6:38 a.m.
To: Vivienne Harvey
Subject: Fwd: Turners Auctions problems encountered trying to deal with DCC and Brent Bachop
Can we try to accommodate something on this.
Sent from my iPhone

Begin forwarded message:
From: Lee Vandervis
Date: 10 November 2011 11:40:00 AM NZDT
To: Paul Orders [DCC]
Cc: Shane Gall [Turners]
Subject: Turners Auctions problems encountered trying to deal with DCC and Brent Bachop
Dear Paul,
Further to my more general email this morning about building partnerships, Dunedin’s largest car auction business has contacted me regarding on-gong [sic] problems trying to do business with the DCC.
Turner’s Auctions big cheese Mr Kachwalla from Auckland will be in Dunedin on the 30th of this month, and was hoping to organise a brief meeting with you and local Turners management on the afternoon of the 30th to attempt to normalise a Turners/DCC business relationship.
I was hoping to bundle similar issues with other Dunedin business issues with Mr Bachop, but am still awaiting information ex DCC after over a month in order to do this.
Hopefully you will have time on the next Wednesday the 30th to accommodate Turners Management hopes for a meeting.
Kind regards,
Cr. Lee Vandervis

From: Shane Gall [Turners]
Date: Wed, 2 Nov 2011 14:30:03 +1300
To: Lee Vandervis
Subject: FW: Turners
Good Afternoon Lee
Attached below is the response we received from Brent less than one minute after sending the email. After 2 emails & numerous phone calls leaving voice messages I’ve yet to get a response.
Asgar Kachwalla is the national accounts manager, & will be here on the 29th / 30th of this month. So if we could get an appointment to meet with Paul Orders this would be much appreciated.
Kind Regards
Shane Gall

{{RE: Ute}}
—— End of Forwarded Message

Attachment To Shane Gall’s Email

[Bachop] Another staff turn over, they wonder why their clients cant strike a good relationship.
As received (Sep 2011); date, time and recipient detail lost from email chain (recoverable). -Eds

That’s great, talk to you soon Peter.
Brent Bachop
Citifleet Team Leader
Dunedin City Council
As received (Sep 2011); date, time and recipient detail lost from email chain (recoverable). -Eds

From: Peter Boyle [Turners]
Sent: Thursday, 29 September 2011 3:51 p.m.
To: Brent Bachop
Cc: Shane Gall [Turners]
Subject: RE: Ute

Hi Brent
Jeff has finished up with us as of last week so Shane Gall will be handling this for you. The vehicle has just arrived and once he has given it a look over he will be in touch to discuss your expectations, setting the reserve, etc.
I am the new manager down here and would love to get out and meet you in the near future. Shane will talk to you about setting up a meeting
Kind Regards
Peter Boyle
Branch Manager Otago/Southland

From: Brent Bachop
Sent: Thursday, 29 September 2011 1:37 p.m.
To: Jeff McLean [Turners]
Subject: Ute
Hi Jeff
Ill have a Ford Courier coming out you this afternoon for disposal.
Talk to you soon.
Regards
Brent Bachop
Citifleet Team Leader
Dunedin City Council

—— End of Forwarded Message

V —Turners Auctions problems encountered trying to deal with DCC and Brent Bachop

From: Lee Vandervis
Date: Thu, 18 Dec 2014 23:24:12 +1300
To: Michael Allan [Radio NZ]
Conversation: Turners Auctions problems encountered trying to deal with DCC and Brent Bachop
Subject: FW: Turners Auctions problems encountered trying to deal with DCC and Brent Bachop

From: Lee Vandervis
Date: Mon, 10 Nov 2014 18:30:38 +1300
To: Mathew Preece [NZ Police]
Conversation: Turners Auctions problems encountered trying to deal with DCC and Brent Bachop
Subject: FW: Turners Auctions problems encountered trying to deal with DCC and Brent Bachop

From: Lee Vandervis
Date: Wed, 04 Jun 2014 22:12:36 +1200
To: Kyle Cameron [Deloitte]
Conversation: Turners Auctions problems encountered trying to deal with DCC and Brent Bachop
Subject: FW: Turners Auctions problems encountered trying to deal with DCC and Brent Bachop

****

—— Forwarded Message
From: Shane Gall [Turners]
Date: Thu, 10 Nov 2011 11:57:03 +1300
To: Lee Vandervis
Subject: RE: Turners Auctions problems encountered trying to deal with DCC and Brent Bachop
Thank you Lee

From: Lee Vandervis
Sent: Thursday, 10 November 2011 11:40 a.m.
To: Paul Orders
Cc: Shane Gall [Turners]
Subject: Turners Auctions problems encountered trying to deal with DCC and Brent Bachop
Dear Paul,
Further to my more general email this morning about building partnerships, Dunedin’s largest car auction business has contacted me regarding on-gong [sic] problems trying to do business with the DCC.
Turner’s Auctions big cheese Mr Kachwalla from Auckland will be in Dunedin on the 30th of this month, and was hoping to organise a brief meeting with you and local Turners management on the afternoon of the 30th to attempt to normalise a Turners/DCC business relationship.
I was hoping to bundle similar issues with other Dunedin business issues with Mr Bachop, but am still awaiting information ex DCC after over a month in order to do this.
Hopefully you will have time on the next Wednesday the 30th to accommodate Turners Management hopes for a meeting.
Kind regards,
Cr. Lee Vandervis

From: Shane Gall [Turners]
Date: Wed, 2 Nov 2011 14:30:03 +1300
To: Lee Vandervis
Subject: FW: Turners
Good Afternoon Lee
Attached below is the response we received from Brent less than one minute after sending the email. After 2 emails & numerous phone calls leaving voice messages I’ve yet to get a response.
Asgar Kachwalla is the national accounts manager, & will be here on the 29th / 30th of this month. So if we could get an appointment to meet with Paul Orders this would be much appreciated.
Kind Regards
Shane Gall
—— End of Forwarded Message

Posted by Elizabeth Kerr

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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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DCC Citifleet, more revelations….

Dunedin City councillor Lee Vandervis said he alerted council chief executive of the time Paul Orders that the Dunedin branch of Turners was consistently shut out of contracts it sought, mainly for the disposal of used cars in 2011.

### stuff.co.nz Last updated 09:57 24/10/2014
Citifleet ‘stonewalled’ auctioneer firm
By Wilma McKay
A Dunedin city councillor says the council should have investigated its fraught Citifleet unit three years ago, when he expressed concerns that it shut out firms like car auctioneer Turners. Lee Vandervis said that in 2011 he alerted council chief executive of the time Paul Orders that the Dunedin branch of Turners was consistently shut out of contracts it sought, mainly for the disposal of used cars. The city council said in June this year it was investigating practices within its vehicle fleet unit Citifleet.
Unit team leader Brent Bachop had died suddenly in late May. His death has been referred to the coroner.
A subsequent Deloitte investigation, commissioned by the council, unravelled a vast network of alleged fraudulent activity, some with selected car dealers and other individuals, over 11 years, equating to more than a million dollars in lost council revenue. Some of the activity involved profits from the disposal of second hand Citifleet vehicles allegedly being pocketed instead of being paid into council coffers.
Vandervis said he was concerned about Bachop’s business dealings when he was told by Turners and other Dunedin businesses they were having difficulty even engaging with Citifleet. He began pressing Orders on the issue and made a raft of requests for information around Citifleet. Vandervis suggested Orders meet the manager “to attempt to normalise a Turners/DCC business relationship”. Vandervis said Turners’ staff had expressed “long and on-going frustration at trying to deal with Citifleet vehicle disposals”.
Read more

Posted by Elizabeth Kerr

24 Comments

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

DCC Citifleet, undetectable….

Received from Lee Vandervis
Tue, 21 Oct 2014 at 7:36 p.m.

Message: In discussions with Sir Julian [Smith], apparently the ODT Editor has said, since Mr Cannan’s comment, that the actual reason for non-publication of my ‘Citifleet Years of Inaction’ letter was that I already had a letter printed on a similar topic recently.
My previous letter was not however on a similar topic or recent. My first letter which was printed, was sent on 24 August on the topic of Coroner and Police inaction.
My second ‘Citifleet Years of Inaction’ letter that the ODT have chosen not to print was on the topic of CEO Paul Orders’ inaction in 2011, and Mayoral misrepresentation.
It is a shame that most people will not now get the true story.
Feel free to publish so that at least some people get to know some of what has been misrepresented.

—— Forwarded Message
From: Lee Vandervis
Date: Sun, 07 Sep 2014 21:20:41 +1300
To: Cushla Turner [ODT], Nicholas GS Smith [ODT]
Cc: Murray Kirkness [ODT]
Conversation: Citifleet chain dragged – Letter to the Editor
Subject: Re: Citifleet chain dragged – Letter to the Editor

Resent – ODT chain dragged?

___________________________

On 4/09/14 8:02 AM, “Lee Vandervis” wrote:

Hi Cushla,
Monday has been and gone, and the mysteries of Coroner and Police inaction linger.
Is there any new reason for delay?

Kind regards,
Cr. Lee Vandervis

___________________________

On 29/08/14 10:44 AM, “Cushla Turner” wrote:

Dear Cr. Vandervis,

Thank you for your letter to the editor, which was received on Monday, August 25. Given the content of your letter, it has been referred to the Dunedin City Council, the police and the coroner’s office for comment, with the deadline for responses being Monday, September 1. Our intention is to publish the letter once we have responses (or confirmations of no comment) from these sources.

Kind regards,
Cushla Turner
Editor’s secretary
Otago Daily Times

___________________________

On 29/08/2014 7:31 AM, Lee Vandervis wrote:
FW: Citifleet chain dragged – Letter to the Editor
Hi Murray,

I am interested to know whether or not the letter below is soon to appear in your paper.
There is a great deal following these questions that needs to be made public, and I am concerned at the spin so far, and that further delays will hinder urgently needed changes at the DCC.

Kind regards,
Cr. Vandervis

___________________________

—— Forwarded Message
From: Lee Vandervis
Date: Sun, 24 Aug 2014 09:57:37 +1200
To: EditorODT
Cc: Nicholas GS Smith [ODT]
Conversation: Citifleet chain dragged – Letter to the Editor
Subject: Citifleet chain dragged – Letter to the Editor

Citifleet chain dragged – Letter to the Editor

Dear Murray,

Why is the coroner taking more than 3 months to deliver a verdict on the DCC Citifleet manager’s sudden death?
Why have the Police only just begun an investigation when so much evidence has been floating around for years and was so tragically highlighted over 3 months ago?
I have been asking for Citifleet manager and other tender process investigations recorded back at least as far as 2011.
Justice delayed is justice denied. Or with so much public money gone is that perhaps the reason?

Cr. Lee Vandervis

—— End of Forwarded Message

___________________________

—— Forwarded Message
From: Dave Cannan [ODT]
Date: Tue, 30 Sep 2014 10:57:03 +1300
To: Lee Vandervis
Cc: EditorODT
Subject: citifleet

Hi Lee — in response, we regarded your email of 13.9.14 as more of a helpful backgrounder to assist us with our ongoing inquiries into the Citifleet scandal – which, as you will have no doubt observed, we are continuing to do regularly — but not as a letter for publication..

regards,\Dave Cannan [Day Editor, ODT]

___________________________

On 29/09/2014 10:59 PM, Lee Vandervis wrote:

Re: Citifleet years of inaction. – Letter to the Editor
Resent – hoping for some response.
Cheers,
Lee

___________________________

On 13/09/14 11:08 AM, “Lee Vandervis” wrote:

Citifleet years of inaction. – Letter to the Editor [ODT]

Dear Editor,

It has been reported (26.8.14) that “Cull said the recent alleged fraud within Citifleet was detected during a comprehensive internal review of the department, one of a series initiated by former council chief executive Paul Orders and continued by his successor, Bidrose.”, who said (3.9.14) “Bachop had told her all car sales went through Turners Car Auctions.”
In fact DCC vehicle disposal and other Bachop issues had been flagged in verbal questions and emails from me to CEO Orders and other senior DCC staff in 2011 following many complaints from Turner’s Auctions and other motor industry businesses. I also set up a meeting to resolve DCC/Turners issues between CEO Orders and Turner’s Auckland based national accounts manager Asgar Kachwalla in November 2011. It seems that little was done until CEO Bidrose began an investigation almost three years later. Perhaps the ODT should be doing some more investigating of its own. [confirming email example below].

Kind regards,

Cr. Lee Vandervis

___________________________

From: Lee Vandervis
Sent: Thursday, 10 November 2011 11:40 a.m.
To: Paul Orders [DCC]
Cc: Shane Gall [Turner’s Auctions]
Subject: Turners Auctions problems encountered trying to deal with DCC and Brent Bachop

Dear Paul,

Further to my more general email this morning about building partnerships, Dunedin’s largest car auction business has contacted me regarding on-gong (sic) problems trying to do business with the DCC.
Turner’s Auctions big cheese Mr Kachwalla from Auckland will be in Dunedin on the 30th of this month, and was hoping to organise a brief meeting with you and local Turners management on the afternoon of the 30th to attempt to normalise a Turners/DCC business relationship.
I was hoping to bundle similar issues with other Dunedin business issues with Mr Bachop, but am still awaiting information ex DCC after over a month in order to do this.

Hopefully you will have time on the next Wednesday the 30th to accommodate Turners Management hopes for a meeting.

Kind regards,
Cr. Lee Vandervis

—— End of Forwarded Message

Posted by Elizabeth Kerr

3 Comments

Filed under Business, Citifleet, DCC, Democracy, Media, Name, New Zealand, People, Politics, Property

Stuff: Dunedin council CEO won’t resign

Latest at Southland Times by Wilma McCorkindale:
03/09/2014 at 17:03

Dr Sue Bidrose said she would not follow two of her general managers out the door in the wake of the $1.5 million alleged fraud investigation.

http://www.stuff.co.nz/southland-times/10456244/Dunedin-council-CEO-won-t-resign

Southland Times 3.9.14 Dunedin council CEO won't resign (stuff.co.nz - screenshot) 14

We all know it was never a question.

Posted by Elizabeth Kerr

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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
3.7.14 Stuff: Alleged vehicle fraud at DCC
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

24 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
3.7.14 Stuff: Alleged vehicle fraud at DCC
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

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: Tony Avery tweaked by whatifdunedin

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DCC: Deloitte report referred to the police #Citifleet

DCC logo (fraud) 2

Updated post 3.9.14

“We have committed to keeping ratepayers and residents informed, but my first priority has to be that the appropriate authorities hold people accountable and we try to recover some ratepayers’ money.” –Sue Bidrose, chief executive

Dunedin City Council – Media Release
Deloitte Report Referred to the Police

This item was published on 22 Aug 2014

An independent investigation into an alleged fraud at the Dunedin City Council has been completed and the matter has now been passed to the Police.

DCC Chief Executive Officer Dr Sue Bidrose says 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 last week following an independent investigation by Deloitte which began in late May. Citifleet Team Leader Brent Bachop died suddenly on 21 May. His death has been referred to the Coroner.

Deloitte was engaged by the DCC on 23 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.

Dr Bidrose says, “The matter is now with the Police and on their advice, and the advice of the Crown Solicitor, we are not releasing the Deloitte report at this stage, to ensure we do not prejudice any Police investigation.

It appears the alleged fraud was possible because of inadequate internal checks and balances within the DCC. Dr Bidrose says, “We are changing things here at the DCC and it is these changes that uncovered this alleged fraud, which occurred over at least a decade. This reinforces the need for these changes which, frankly, are long overdue.” 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. However, this will be an ongoing process that will take time.

“I want to emphasise that this is an organisation in which people can have confidence. The people who work here are overwhelmingly decent, hard-working public servants committed to the best interests of the city. We are committed to getting to the bottom of any issues and ensuring we have best practice across the board. The changes are well underway – in fact it was in making these changes that we uncovered the alleged fraud.”

Dr Bidrose says the DCC has employment processes underway relating to a small number of staff, primarily around the lack of checks and balances which should have been in place. Mayor of Dunedin Dave Cull says the fact these issues have been found now after more than a decade shows the Council has been right to push for more transparency and tighter processes. “We tasked Sue, and the previous Chief Executive Paul Orders, with reviewing DCC practices so any problems or issues could be fixed as part of our accountability to ratepayers. Paul started with our companies and made a huge improvement in their governance and oversight. Now Sue and her staff are having the same impact inside the DCC.”

Dr Bidrose says a wide range of work has been completed to tighten up 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 first review of internal audit work across the DCC has been completed.
● The risk management framework has been reviewed.

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 so they know what may be signs of fraud.
● Increasing further the transparency of purchase card use.
● A review of key DCC policies, such as those relating to fraud and cash handling.
● Review the procurement/tendering processes across the DCC.
● A review of internal processes around issues such as the staff receiving gifts, tickets or hospitality.

The Deloitte report has been sent to both the Serious Fraud Office and DCC insurers QBE. To date, the investigation has cost about $200,000.

Background: Citifleet is responsible for the management of all DCC vehicles, the operation of an internal courier service and an internal chauffeuring 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 needed.

DCC Link

█ What ex DCC chief executive Jim Harland thinks at ODT Online (3.9.14)

### stuff.co.nz Last updated 15:45 22/08/2014
Police probe into missing council cars
By Wilma McCorkindale – via The Press & Southland Times
Police will investigate a suspected fraud involving dozens of Dunedin City Council cars allegedly sold and the proceeds pocketed. Sources say ratepayers may have lost as much as $1 million as a result of the alleged activity. Dunedin Inspector Jason Guthrie confirmed police had received a complaint from the council “in relation to a significant historical fraud matter involving the council’s vehicle fleet”. “The complaint is being assessed and will be investigated further,” Guthrie said. This investigation was likely to take months. Stuff understands the council’s Citifleet/Citipark manager Brent Bachop, who died on May 21 in a suspected suicide, was among an alleged network of buyers. It is understood Bachop had been told that discrepancies had been found in vehicle numbers within his unit.
Read more

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Stuff: Alleged vehicle fraud at DCC

Stuff has been told the council’s former chief executive, Paul Orders, investigated concerns about possible fraud within Citifleet/Citipark raised by Dunedin City councillor Lee Vandervis and found nothing untoward.

### stuff.co.nz Last updated 21:27 02/07/2014
Dunedin council’s vehicle network revealed
By Wilma McCorkindale – Fairfax News
Investigations into alleged vehicle fraud at the Dunedin City Council Citifleet/Citipark unit have unravelled a vast network of vehicle transactions over the past 11 years, an informed source has told Stuff. The probe has been under way for more than a month. Accountancy firm Deloitte was commissioned to investigate whether dozens of Dunedin City Council fleet vehicles had been sold and the proceeds pocketed. The investigation was sparked when discrepancies appeared in the number of fleet vehicles recorded by the council’s fleet unit Citifleet/Citipark.

The investigation has shocked those in the Dunedin car retail, automotive, and enthusiast community.

Stuff has been told this week the council gave Deloitte investigators a list of council vehicle movements through a network of buyers and subsequent owners over the 11 years. It included buyers of the vehicles, who now owned the vehicles, and how long they had owned them. At least three people, who took ownership of many vehicles, are among those in a network under suspicion of being involved in the fraudulent activity.
Stuff understands Citifleet/Citipark manager Brent Bachop, who died on May 21 in a suspected suicide, was allegedly among the network of buyers. It is understood Bachop had been told that discrepancies had been found in vehicle numbers within his unit. Bachop had worked in the unit for more than 20 years, the past 10 or so as manager.
Read more

Related Posts and Comments:
1.7.14 DCC: Far-reaching fraud investigation Citifleet
3.6.14 DCC unit under investigation

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DCC: Far-reaching fraud investigation Citifleet

“Our reputation as an organisation of people who don’t take home a single ratepayer dollar outside our wages is very precious. We’re going to have to earn this back, as even [last week’s] news has already dented it.”
–Sue Bidrose

### ODT Online Tue, 1 Jul 2014
Citifleet now fraud inquiry
By Chris Morris
An inquiry into the disappearance of dozens of Dunedin City Council vehicles – and allegations of missing hundreds of thousands of dollars – is now a fraud investigation, council chief executive Dr Sue Bidrose has confirmed. Dr Bidrose stopped short of implicating individual council staff, at least for now, saying yesterday the focus was on “all aspects” of the processes and practices within its Citifleet department.
Read more

****

DCC vehicles [Photo by RNZ Ian Telfer]Photo: RNZ/Ian Telfer

### radionz.co.nz Updated less than a minute ago
Council fleet probe investigates fraud
By Ian Telfer – reporter
Dunedin City Council has confirmed that a probe trying to find missing fleet vehicles has become a fraud investigation. The council called in financial specialists from Deloitte four weeks ago for what it now calls a far-reaching investigation of its Citifleet and Citipark departments. The inquiry is centred on what appears to be a discrepancy in the number of council-owned fleet vehicles. The investigation followed the sudden death, six weeks ago, of the departments’ longstanding team leader, Brent Bachop. Council chief executive Sue Bidrose has for the first time described Deloitte’s work as investigating possible fraud. Asked why the police were not doing the investigating, Dr Bidrose said the police were aware of the situation, but the council will need to have evidence of wrongdoing before referring the issues on.
RNZ News Link

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DCC unit under investigation

Updated post 7.6.14

### radionz.co.nz Updated at 6:30 am today
Financial probe at Dunedin Council
By Ian Telfer – reporter
The Dunedin City Council has called in financial investigators after an internal review found irregularities in two departments.

Go to http://www.radionz.co.nz/news/regional/246539/financial-probe-at-dunedin-council

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Via Fairfax News:
Dunedin council unit under scrutiny
Last updated 14:57 03/06/2014
By Wilma McCorkindale
The Dunedin City Council has launched an investigation into its Citipark/Citifleet unit. The unit is responsible for the council’s parking services and also for its management of its fleet of vehicles. Council chief executive Dr Sue Bidrose would not be drawn on the reason for the investigation which is being carried out by accountancy firm Deloitte. The investigation had just started and was being incorporated into a wider review of key accounting practices within the council, which was initiated last year. She said it would be inappropriate to release further details, such as what has sparked the probe. A council spokesman confirmed the unit’s manager Brent Bachop died suddenly last month. Dunedin police said his death had been referred to the coroner.

More at http://i.stuff.co.nz/national/10114427/Dunedin-council-unit-under-scrutiny

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