Tag Archives: Citypark

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

Posted by Elizabeth Kerr

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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

Posted by Elizabeth Kerr

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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

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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

Posted by Elizabeth Kerr

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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

Posted by Elizabeth Kerr

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