National Business Review 16.12.16
Hunter’s Corner by Tim Hunter (page 2)
Opinion: Lines companies: it’s worse than we thought
The article appears in today’s NBR print edition, available at bookstores and supermarkets, and by subscription. Short excerpt at right.
Tim Hunter has appraised the Deloitte report and the activity -or not- of the lines company Aurora Energy and ‘contractor’ Delta Utility Services. He also provides brief overview of the companies’ position as seen (problematically!) by industry regulator, the Commerce Commission. The award-winning business writer typically shows fine ability to crack code, applying thrift and plain sense in noting gross impediments to good governance and operational performance. Mr Hunter could write the book on Aurora/Delta, the ugly sisters, a true Horror Story —not the kitten tale by Deloitte, which anyway gets things rolling. As one of three investigations, Deloitte’s was always going to suffer lack of scope and independence given its commissioners:
the brothers Grimm —DCHL and DCC.
█ For more, enter the terms *aurora*, *delta*, *grady*, *luggate*, *jacks point*, *dchl*, *auditor-general*, *noble*, *yaldhurst* or *epic fraud* in the search box at right.
### 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the Dunedin City Council’s long-running fraud was released to media despite internal concerns from senior police it was out of date, emails showed.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.
DCC CULTURE OF ENTITLEMENT
‘Enormously disappointing’ —And Enormously Expected.
‘ONE MAN’ did it. An outright fairytale.
DOLLY didn’t, either. More to come !!
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### ODT Online Mon, 10 Aug 2015 Further cases of fraud at council
By Chris Morris
The Dunedin City Council says the discovery of five more examples of fraud and theft inside the organisation is “enormously” disappointing. […] Details of the smaller incidents emerged last week, in response to Otago Daily Times questions, a year after the discovery of the Citifleet fraud. Read more
### 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″ )
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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.
Site Admin
What if? Dunedin has received a total of 17 emails from Lee Vandervis, including two with email attachments. A further three emails have been withheld from publication due to privacy reasons, and which may be actionable.
The first batch of seven emails feature at this post, with the remaining ten emails (some repeats to different recipients as Mr Vandervis follows up with Kyle Cameron of Deloitte, responsible for the Citifleet investigation) to be added at Comments after being photographed and stitched back together to retain threads.
To be noted, this is part document proof of Cr Vandervis’ efforts from 2011 forward to elicit information on suspicion of fraud occurring at Citifleet. The emails show DCC Senior Management were aware of fraud allegations well prior to 2013/14, despite Council’s formal media statements to the contrary last year. They also support the obvious need that existed for a wider fraud investigation in regards to Council tendering processes, service contracts, traffic of car parts and tyres, staff credit card spending (by multiple available cards) and more – quite apart from disposal of at least 152 Council vehicles in the period 2003-2013, the set arbitrary window for investigation by Deloitte.
The DCC chief executive having taken a fraud complaint to Dunedin police was advised police had insufficient resources for follow up. There was then a three-month gap before police received the Deloitte investigation report commissioned by the Council. Three months is long amount of time to minimise and remove critical evidence within Council and about town. Dunedin City Council knows that. Deloitte knows that. Dunedin police know that. We can assume the Council’s insurers know that, yet they paid out $1 million in two instalments, for the ‘lost’ vehicles only [see DCC media release]. The three-month gap in itself is a suspicious if not criminal activity against Dunedin ratepayers and residents.
For more information at this website, enter the term *citifleet* in the search box at right.
Received from Lee Vandervis
Tue, 17 Mar 2015 10:19 a.m.
█ Message: I have had enquiries today from members of the public regarding my initial 2011 investigation of Citifleet complaints. For the public record, I am forwarding the related emails I have on record from that period, some of which you may find interesting enough to publish.
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Batch #1 (six emails distinguished by blue subject lines and flags)
### ODT Online Tue, 17 Mar 2015 Council sets up whistleblower committee
By Eileen Goodwin
An internal audit policy adopted by the Dunedin City Council shifts responsibility to governance level, an “important change”, councillor Richard Thomson told a council meeting yesterday. […] Cr Lee Vandervis asked how easy it would be for the general public to tip off the council’s whistleblower, given he was “beginning to tire of the role, given recent events”. Read more
█ Comments not allowed at ODT Online.
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It is completely ludicrous that our little Cr Thomson is today making public comment on DCC’s new Whistleblower Policy – given Cr Thomson as chair of DCC Finance Committee has had every opportunity to treat his colleague, Cr Vandervis, the Council’s most notoriously effective Whistleblower, with all fairness and due respect but has actively failed on that count, time and time again.
What is it with Cr Thomson, our import from Southern District Health Board and former Otago District Health Board. Doesn’t the Councillor see it as his mission to relieve Dunedin Ratepayers from the living hell of the nearly unsurpassable multimillion-dollar mountain of corruption and fraudulent activity perpetuated at the Council and through its CCOs. Whitewash is not removal, Councillor.
A quietly spoken SDHB informant tells me Susie Johnstone, a chartered accountant, was wheeled in by the Health Board after the Swann fraud, for mop up. Well, Detectives, who wheeled her in and what was the nature of the mop up?
Separately, following Cr Thomson’s uptake into local body politics, Ms Johnstone was recommended for the position of independent chair of the DCC Audit and Risk Subcommittee.
The ARS committee is now to deal with Whistleblowing (no surprises there). As we have already published in previous months, via intimations of the Draft Whistleblower Policy: the DCC contact for Whistleblowers has been a Balclutha woman, whether actively.
Connections regularly multiply. The timing of Council’s announcement of its new Whistleblower Policy is sheer craziness in light of yesterday’s illegitimate farce of a conduct hearing, held at the expense of the DCC Chief Whistleblower. A woman from Balclutha was a witness at the hearing….
Rule of Thumb for DCC Whistleblowers: use outside means.
Good to see Eileen Goodwin reporting on Council business.
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### ODT Online Tue, 17 Mar 2015 Vandervis accused of ‘bullying’ behaviour
By Vaughan Elder
Dunedin City councillor Lee Vandervis’ aggression towards colleagues was slammed as unacceptable at a code of conduct hearing yesterday. The committee heard evidence relating to three complaints, two of which related to him behaving in an “aggressive” manner. […] The panel’s independent chairman, Prof Stuart Anderson, of the University of Otago’s faculty of law, noted the committee needed to look at Cr Vandervis’ intent and not whether he was correct. Read more
█ Comments allowed at ODT Online.
How many comments will be lost and deleted?
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### ODT Online Tue, 17 Mar 2015 Councillor apologises for ‘loudness’
By Vaughan Elder
[…] In an effort to not upset people, [Cr Lee Vandervis] would no longer go to the audit and risk subcommittee – where he was accused of being aggressive towards the independent chairwoman – and make his complaints to chief executive Dr Sue Bidrose by email rather than in person. These two steps would “more” importantly stop him from being the subject of further “political back-stabbing”, he said. Read more
● For more, enter the terms *vandervis* and *citifleet* in the search box at right.
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Documents: Dunedin City Council – Standing Orders (PDF, 1019.0 KB)
The Standing Orders set out rules for the conduct meetings of the Dunedin City Council and includes the Code of Conduct for Elected Members, as adopted at the inaugural Council meeting Oct 2010.
DCC Committee Structures and Delegations Manual (PDF, 328.7 KB)
This document details the constitution of the Council, Committees and Subcommittees, and the delegations to the Chief Executive.
Received from Lee Vandervis
Fri, 13 Mar 2015 at 9:32 a.m.
█ Message: Your readers may be interested in an example of how extraordinarily difficult it often is for Councillors to get information from staff – especially if that information is about staff.
An important example is highlighted in the following email trail – important because as the original Citifleet whistleblower in 2011, I am still getting flack and having information withheld that could help to get to the bottom of DCC frauds.
Thank you for this sudden response after more than 3 months of nothing.
Further follow up LGOIMA requests are as follows;
Why has this multiple LGOIMA request not been acknowledged or decided upon within the required 21 working days?
When you say that this is “our response” who exactly has been responsible for the decisions in the response?
Are you aware that the last time I went to the ombudsman to hurry up an information request, it took several attempts and 11 months to get an answer?
Looking forward to a response by return.
Cr. Vandervis
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On 11/03/15 4:03 PM, “Grace Ockwell” [DCC] wrote:
Good afternoon Lee,
Thank you for your email of 20 November 2014 and your follow-up email requesting information about the Deloitte Report on Citifleet. Your request has now been forwarded to me to process. It has been considered under the provisions of LGOIMA and the following response is provided. I have repeated your request (or parts thereof) to give context to our response.
a full copy of the original Deloitte Report on Citifleet [including all appendices] as referred to below.
The Police have yet to conclude their investigation of this matter and therefore a copy of the full Deloitte report is still withheld pursuant to section 6(a) of LGOIMA to avoid prejudicing the maintenance of the law and the detection of offences. It is also withheld pursuant to section 7(2)(a) of LGOIMA to protect the privacy of individuals.
As part of the full report from Deloittes I also wish to have, again on grey paper if necessary, the separate Deloitte investigation report and recommendations to CEO Bidrose regarding investigations into the activities of ‘certain DCC employees’. [2.10(b)]
The information provided to the CEO in relation to staff is withheld pursuant to section 7(2)(a) of LGOIMA to protect the privacy of individuals and pursuant to section 7(2)(c) as the information provided is subject to an obligation of confidence.
In addition I wish to see the Deloitte file ‘to support a complaint to the Serious Fraud Office/Police’, and any Citifleet related advice to Council’s legal advisors.
All correspondence between the Council and our legal advisors (including correspondence between Deloitte and our legal advisors on the Citifleet matter) is withheld pursuant to s 7(2)(g) of LGOIMA to protect legal professional privilege. Additionally, some but not all of the material is also withheld pursuant to section 6(a) of LGOIMA to avoid prejudicing the maintenance of the law and the detection of offences.
Finally I wish to have sent to me the electronic copy preserved by Deloitte of information that DCC controls as referred to in 2.10(a) and any associated analysis results.
The Police have not yet concluded their investigation of this matter and therefore the preserved electronic copy of information held by Deloitte which the Council controls is withheld pursuant to section 6(a) of LGOIMA to avoid prejudicing the maintenance of the law and the detection of offences. It is also withheld pursuant to section 7(2)(a) of LGOIMA to protect the privacy of individuals.
As you are aware, as we have withheld information, you have the right pursuant to section 27(3) of LGOIMA to have our decision to withhold information reviewed by the Office of the Ombudsman.
Yours sincerely
Grace Ockwell
Governance Support Officer
Dunedin City Council
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From: Lee Vandervis Date: Wed, 11 Mar 2015 09:37:03 +1300 To: Sandy Graham [DCC], Sue Bidrose [DCC] Conversation: Further LGOIMA requests Subject: Re: Further LGOIMA requests
Dear Sandy and Sue,
Can you please update me by return on where these LGOIMA requests have progressed to?
Regards,
Cr. Vandervis
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On 24/12/14 10:13 AM, “Lee Vandervis” wrote:
Dear Sandy,
Again I request a full copy of the original Deloitte Report on Citifleet [including all appendices] as referred to below.
I can accept that the full report may have to be provided on grey paper.
As part of the full report from Deloittes I also wish to have, again on grey paper if necessary, the separate Deloitte investigation report and recommendations to CEO Bidrose regarding investigations into the activities of ‘certain DCC employees’. [2.10(b)]
In addition I wish to see the Deloitte file ‘to support a complaint to the Serious Fraud Office/Police’, and any Citifleet related advice to Council’s legal advisors.
Finally I wish to have sent to me the electronic copy preserved by Deloittes of information that DCC controls as referred to in 2.10(a) and any associated analysis results.
Ratepayers have paid quarter of a million dollars for the production of this information and I wish to see all of it as a public representative in the public interest.
It is not acceptable to me to have only been provided with the public redacted report along with the public at such a late pre-Christmas stage.
Regards,
Cr. Lee Vandervis
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On 13/10/14 10:32 PM, “Lee Vandervis” wrote:
Dear Sandy,
You have not answered the question as to why one elected representative [the Mayor] seeing the entire Deloitte report [and parts of the report appearing in Audit and Risk Subcommittee agendas] is not likely to “prejudice the maintenance of the law including the investigation and detection of offences.” but that this is still an excuse for not showing the entire report to other elected representatives like myself. Especially given the number of comments the Mayor and CEO have been making to the media regarding the subject of the Deloitte Report.
Your claim that the Stadium review is not yet completed and is still in draft form directly contradicts the advice of the quoted Audit and Risk agenda of 7/10/14 which plainly says that the Stadium “external review has been completed”. If the former, since it can’t be both, why can’t I see it anyway? And why have we then been misled in the A&R agenda?
Being “of course entitled to have that decision reviewed by the Office of the Ombudsmen.” is a farcical affront, given the last response from this dysfunctional excuse for a government department took ELEVEN MONTHS to reply to my request to see the faults list for the long completed Town Hall redevelopment, which you also refused.
This systematic stonewalling of this elected representative by DCC staff is unacceptable to me.
Notice McLauchlan has been well immersed in affairs of the QLDC, and especially now under Feeley’s leadership (fox chickens, SCF).
“….the QLDC audit and risk committee, chaired by Institute of Directors president Stuart McLauchlan, of Dunedin, recommended a sensitive expenditure policy be adopted in the wake of the Citifleet fraud….” ODT 20.12.14
Delta. ORFU. Stadium land purchases. [list goes on, insider trading, etc]
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Ruth Stokes is like trading partners, house keys in the goldfish bowl (spot any car keys?). Terminology, eh? Congratulations DCC, a blonde from Eiontown —on Dunedin, “the great small city”, yarp…. already cued to tow the DCC party line. Likes the word STAKEHOLDERS.
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Dunedin City Council – Media Release DCC appoints new General Manager
This item was published on 24 Dec 2014
Ruth Stokes has been appointed to the position of Infrastructure and Networks General Manager. She brings with her experience in senior policy development, planning and project management and has worked in both the public and private sectors. DCC Chief Executive Dr Sue Bidrose says she’s very pleased to announce Mrs Stokes appointment. “Ruth is a successful general manager with a financial background, strong public service values and a reputation for delivering. Her mix of skills will be an asset to the DCC.”
Mrs Stokes will take on the responsibilities of departing General Manager Tony Avery.
Mrs Stokes is the General Manager Operations for the Queenstown Lakes District Council (QLDC). She has been in that role for the past 16 months and Chief Executive Lakes Leisure (a council controlled organisation) prior to that. Before moving to Queenstown she worked at Auckland Council, Westpac and KPMG in various roles. She holds a Bachelor of Commerce from the University of Auckland and a Post Graduate Certificate in public management from Victoria University of Wellington. Mrs Stokes has a background in infrastructure planning, development, recreation, parks, and aquatics.
“The way these assets and facilities are managed often make a major difference to the perception of a city. I think the job is a terrific opportunity to work as part of Council’s leadership team to help Dunedin become the great small city it strives to be.”
She has enjoyed her time in Queenstown, and will stay in touch with her friends and colleagues. “But I am really looking forward to moving to Dunedin and experiencing the advantages the city has to offer. I am keen to meet the DCC leadership team, the Councillors, the stakeholders and the staff. I think it is great going into a Long Term Plan year, as it gives me the opportunity to hear about what the community wants to achieve over the next 10 years.” Getting to know people and forming a detailed understanding of the role will be her first focus. Mrs Stokes will start at the DCC in February. Contact Dr Sue Bidrose, DCC Chief Executive Officer on 477 4000. DCC Link
New Year turkey structure (can add names if anyone has been missed off):
Sue Bidrose, Chief Executive. Grant McKenzie, Group Chief Financial Officer. Sandy Graham, Group Manager Corporate Services. Bernie Hawke, Group Manager Arts and Culture. Ruth Stokes, General Manager Infrastructure and Networks. Simon Pickford, General Manager Services and Development.
Basters: [John Christie, Director Enterprise Dunedin] [Kevin Taylor, Manager City Property] [Anna Johnston, Manager City Development]….
“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.”
That is not all the “others” needed to do to explain away their part, particularly when Brent Bachop has been held solely accountable on the strength of no interview. Little credence is given to what suspects say or don’t say these days and that is why circumstantial and independent evidence carries far more weight.
Crimes Act section 246 – Receiving
(1) Everyone is guilty of receiving who receives any property stolen or obtained by any other imprisonable offence, knowing that property to have been stolen or so obtained, or being reckless as to whether or not the property had been stolen or so obtained.
It was never intended that “knowingly” and “recklessness” be simply explained away by a suspect, as suggested by Detective Preece. Other evidence can be far more compelling and he is not prevented from investigating it – the cheap price paid for the DCC cars, the number and frequency of transactions, outside normal business practices, the transactional documents, communication between the parties – or did Bachop communicate or implicate other persons to his closest friends or loved ones before he died. The fact that Vandervis raised the alarm within the organisation over 2 years and nothing was done tends to suggest the involvement of others.
The law states the crime of receiving is as serious as the crime of theft, but the criminal courts have long considered it more serious because without willing receivers (the black market) there would be no thieving.
[ends]
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Tony Tuthill Uploaded on Nov 23, 2007 Elvis Costello – Watching the Detectives (song & lyrics)
Created with written permissions/agreements with: Universal Music Group.
The single, produced by Nick Lowe, was the first to be credited to ‘Elvis Costello & the Attractions’, reflecting the new backing band that he was using, previous releases being credited solely to the singer. The lead track was, in fact, recorded in May 1977, before the Attractions existed – the backing band on the song were Steve Goulding on drums and Andrew Bodnar on bass guitar, both from Graham Parker’s band, The Rumour. Keyboard overdubs were added later by Steve Nason (later better-known as Steve Nieve). It was also the first top 40 hit in the UK Singles Chart for Costello, reaching #15 and spending a total of eleven weeks in the chart.
Elvis Costello (b. 1954, London) is an English singer-songwriter. He began his career as part of London’s pub rock scene in the early 1970s and later became associated with the first wave of the British punk and new wave movement of the mid-to-late 1970s.
Tim Hunter has appraised the Deloitte report and the activity -or not- of the lines company Aurora Energy and ‘contractor’ Delta Utility Services. He also provides brief overview of the companies’ position as seen (problematically!) by industry regulator, the Commerce Commission. The award-winning business writer typically shows fine ability to crack code, applying thrift and plain sense in noting gross impediments to good governance and operational performance. Mr Hunter could write the book on Aurora/Delta, the ugly sisters, a true Horror Story —not the kitten tale by Deloitte, which anyway gets things rolling. As one of three investigations, Deloitte’s was always going to suffer lack of scope and independence given its commissioners:
What if? Dunedin... 