Tag Archives: Finance Department

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

8 Comments

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

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

55 Comments

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