Tag Archives: Charitable trusts

Perspective: stadium turmoil outweighs arts festival failure

The old names keep popping up.

Responsibility for the accounting and administration of The Otago Festival of the Arts 2012 falls squarely on the board of trustees. No-one else.

Learn more about The Otago Festival of the Arts Trust here.
Registration No: 980660

Officers/Trustees:
Paul Dallimore, patron
Malcolm Farry, chairman
Beverley Smith
Warren Leslie
Stuart McLauchlan
Rosey McConnon
Barbara Larson

One of the trustees is prominent chartered accountant and professional director Stuart McLauchlan.

The chairman of the arts trust is Malcolm Farry, better known as chairman of the Carisbrook Stadium Charitable Trust. The stadium trust has occupied a central role in the set-up and failure of Dunedin’s new Forsyth Barr stadium, involving a multimillion dollar cost blowout and contributing heavily to the overall indebtedness of Dunedin City Council and council companies.

Mr Farry’s business consultancy, Farry Riddell, operating out of Forsyth Barr House, was advertising prominently in the Otago Daily Times recently. The online identity for the firm has a ‘global’ black and white theme (link).

Mr Farry yesterday apologised for the delays, saying they had been caused by poor administration of the event.

### ODT Online Sat, 15 Dec 2012
Festival turmoil: artists to be paid
By John Lewis
An interim manager has been appointed to the Otago Festival of the Arts to sort out the disarray in the organisation’s financial affairs. Of about 30 local, national and international groups who performed in the October 5-14 event in Dunedin, some have not been paid. Festival director Alec Wheeler has resigned. However, Festival Trust chairman Malcolm Farry said yesterday all artists would be paid by the end of the year.

A source close to the organisation said historically, all artists were paid before they performed, but this year’s acts were not.

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Posted by Elizabeth Kerr

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DIA media release

What if? Website Reminder:
ORFU – Otago Rugby Football Union
TTCF (Inc) – The Trusts Charitable Foundation (being wound up; established as a Charitable Trust by deed in July 1989)
TTCF Ltd – The Trusts Community Foundation Ltd (set up and licensed on 11 June 2010)

Received yesterday.

[Begins]

Department of Internal Affairs
Media Release

25 May 2012

Sentenced for defrauding community of pokie grants

An Internal Affairs investigation uncovered a pokie machine rort that resulted in a significant loss of grant funding going to the community. The investigation revealed that numerous grant applications to gaming machine societies from Counties Manukau Bowls (CMB), an umbrella organisation for South Auckland bowling clubs, were fraudulent.

From late 2006 to September 2009 Counties Manukau Bowls employed Noel Henry Gibbons, 79, of Manurewa, to apply for gaming machine grants.

Mr Gibbons implemented a scheme whereby constituent clubs or CMB itself would invest indirectly in purchasing pubs where pokie machines operated – so that in turn those clubs could benefit from grants of pokie machine proceeds.

Mr Gibbons also applied for grants from gaming machine societies for “bowling green maintenance” – but some of the money was used illegally to repay loans for the purchase of pubs. This money should have been distributed to local community purposes as grants. Paying off loans is a commercial and illegal use of funding generated from pokie machines.

Mr Gibbons fabricated quotes and invoices from “green keeping contractors” to support grant applications and the provision of services. None of those named in the invoices as billing for a service knew anything of the work they were supposed to have done.

He was sentenced in the Manukau District Court today to six months’ community detention for obtaining $605,550 by deception and of using forged documents.

Judge Charles Blackie said Gibbons’ offending was a “very elaborate” scam and an “unlawful scheme”. The defendant knew he acted dishonestly each time he made a false application and this was at the expense of the community.

Judge Blackie emphasised the need to hold the defendant accountable and responsible, to deter others who might be inclined to “rip off” the system, and to provide for the community’s interests as the victims of this offending. He adopted a starting point of two years six months’ imprisonment but imposed a lenient sentence because of Gibbons’ guilty plea, advanced age and poor health.

Maarten Quivooy, Internal Affairs’ General Manager of Regulatory and Compliance Operations said organisations cannot expect that buying into pokie machine venues will ensure favourable treatment for grant applications.

“It’s illegal and the Department works to ensure that pokie money, which belongs to the community, is protected,” he said. “We want to ensure that community groups have fair access to gambling-generated funds and will take action over any attempts to capture funding flows that are detected.

“We are very pleased that our investigation has led to Mr Gibbons being held accountable for fraud, and for defrauding his community. A clear message to the gambling sector is this: where we come across deliberate and wilful attempts to take community funding we will take strong and decisive action to hold people accountable”.

Media contact:
Trevor Henry, senior communications adviser, Department of Internal Affairs
Ph 04 495 7211; cell 021 245 8642

[ends]

Read it at the Department of Internal Affairs website
Other DIA News, Press Releases & Consultation (Link)

Posted by Elizabeth Kerr

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DIA, OAG, TTCF and Otago Rugby swim below the line

While the Star-Times has, over the past eight years, unveiled a string of questionable arrangements around pokie machines involving a number of gaming trusts, the department [Internal Affairs] has brought only a few major prosecutions.

### stuff.co.nz Last updated 05:00 22/04/2012
The inside man
By Steve Kilgallon – Sunday Star Times
Martin Legge spent two decades as a cop in Levin, catching the crims and then, as police prosecutor, taking them to court. Now, he says, he wonders why. “I’m embarrassed that we used to run around chasing guys for $1000 they ripped off Social Welfare,” he says. “The big money is heading out the back door through softly regulated industries full of people in suits who should know better.” After leaving the police, Legge worked for a gaming machine trust which gave out poker machine grants. What he saw over the next decade shocked, disgusted and disillusioned him. He tried to brief his local MP, the gaming minister Nathan Guy, on the state of the industry. And then Internal Affairs, the industry watchdog, rang him up. Would he, it asked, become a whistleblower? Legge and his wife Liz hand-delivered two bulging ringbinders of documents to the department, packed with incriminating emails (some marked “delete this email forever”) to and from his colleagues at the Trusts Charitable Foundation. He also gave Internal Affairs a 9200-word statement. He was interviewed by an investigator who said he was confident of a result. Then he was told it was a “slamdunk”. In January 2011, the head of investigations told the Legges the case was “90 per cent complete” and he was contemplating seven serious charges against individuals and the trust. Legge waited, and waited. He wrote again to Guy, who rebuffed him, he contacted the auditor-general’s office, and pursued Internal Affairs until March [2012], when the department finally told him it was, pretty much, case closed. By then, Legge says wryly, relations were “strained”.

So why, when he supplied Internal Affairs with material on a string of questionable incidents that could have resulted in multiple prosecutions, has nothing happened?

In March, Dave Sayers [at Internal Affairs] finally wrote, essentially dismissing most of Legge’s key concerns and, in two cases, around Acklin’s behaviour and $5m of grants given to the Otago Rugby Union, said investigations continued, although allegations around those two incidents were now as much as six years old.

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Posted by Elizabeth Kerr

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‘Forsyth Barr Stadium Base Building Further Requirements’

Incompetence by another name, actually, ‘Carisbrook Stadium Charitable Trust Exclusions’.

Davis Langdon was asked to review progress made by the trust, and it was the reviewer’s report that first coined the term “exclusions” to describe what was considered to have been missed from the project’s planning. The exclusions included a kitchen fit-out, broadcasting facilities, electronic turnstiles, score boards and replay screens. -ODT

Dunedin City Council’s finance, strategy and development committee met on Monday 14 March.

How they voted
There were several votes at the non-public meeting. For the substantive vote, that the committee recommend the council approve additional borrowing of up to $5.15 million to fund capital expenditure for the stadium, Crs Bill Acklin, John Bezett, Syd Brown, Neil Collins, Paul Hudson, Chris Staynes, Richard Thompson and Mayor Dave Cull voted for, while Crs Fliss Butcher, Jinty MacTavish, Teresa Stevenson, Lee Vandervis and Kate Wilson voted against. Cr Andrew Noone had left the meeting, and Cr Colin Weatherall apologised for non-attendance. -ODT

### ODT Online Sat, 19 Mar 2011
How $5.1m worth of ‘exclusions’ became included
By David Loughrey
Construction at Dunedin’s Forsyth Barr Stadium may be rapidly reaching a conclusion, but in the shadow of the structure, the financial debate and the entrenched political tensions, continue. Dunedin City Council reporter David Loughrey explores why an extra $5.1 million funding was granted for the stadium this week, and finds some differing views.
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### ODT Online Sat, 19 Mar 2011
Editorial: Drilling into the debt mountain
Amid the bickering and sabre-rattling, some clarity is beginning to emerge on the true extent of the impost Forsyth Barr Stadium funding is imposing on Dunedin city debt levels. Part of that funding – $5 million annually, to be precise – is supposed to come from dividends yielded by the council’s various companies, under the umbrella of Dunedin City Holdings Ltd.
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More blither from people who don’t know how to fundraise, oh that’s DCC…

### ODT Online Sat, 19 Mar 2011
Trusts to be targeted again
By David Loughrey
Charitable trusts can expect another round of requests for funding for the Forsyth Barr Stadium, following a Dunedin City Council decision earlier this week. The decision came after a report to the finance, strategy and development committee that showed 16 trusts had been asked for money in the last few years, and four had come up with $7.9 million.
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Posted by Elizabeth Kerr

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