Warning! NZ disposable income down

Link received Mon, 6 Apr 2015 at 1:00 p.m.

█ Message: Wouldn’t read this in local media !!!

—

### marketoracle.co.uk Apr 05, 2015 – 01:28 PM GMT
Economics / Asian Economies
New Zealand Economy – There’s Trouble Brewing In Middle Earth
By Raul I Meijer
For the second time in three years, I’m fortunate enough to spend some time in New Zealand (or Aotearoa). In 2012, it was all mostly a pretty crazy touring schedule, but this time is a bit quieter. Still get to meet tons of people though, in between the relentless Automatic Earth publishing schedule. And of course people want to ask, once they know what I do, how I think their country is doing.
My answer is I think New Zealand is much better off than most other countries, but not because they’re presently richer (disappointing for many). They’re better off because of the potential here. Which isn’t being used much at all right now. In fact, New Zealand does about everything wrong on a political and macro-economic scale. […] I’ve been going through some numbers today, and lots of articles, and I think I have an idea what’s going on. Thank you to my new best friend Grant here in Northland (is it Kerikeri or Kaikohe?) for providing much of the reading material and the initial spark.
To begin with, official government data. We love those, don’t we, wherever we turn our inquisitive heads. Because no government would ever not be fully open and truthful.

This is from Stuff.co.nz, March 19 2015:
New Zealand GDP grew 3.3% last year

New Zealand’s economy grew 3.3% last year, the fastest since 2007 before the global financial crisis, Statistics NZ said. Most forecasts expect the economy to keep growing this year and next, although slightly more slowly than in the past year. For the three months ended December 31, GDP grew 0.8%, in line with Reserve Bank and other forecasts. That was led by shop sales and accommodation. That sounds great compared to most other nations. But then we find out where the alleged growth has come from (I say alleged because other data cast a serious doubt on the ‘official’ numbers) […] while the economy ostensibly grew by 3.3%, disposable income was down. That’s what you call a warning sign.

….Meijer’s commentary continues in reference to recent New Zealand news stories:

Stuff: Dairy Slump Hits New Zealand Exports To China
Radio NZ: Export Drop Rattles Companies
NZ Herald: World Dairy Prices Slide 10.8% On Supply Concerns
Radio NZ: World ‘Awash With Milk’
NZ Herald: Stress Too Much For Farmers
NZ Herald: Hot Properties: Auckland Valuations Out Of Date Within Months

He ends by citing NZ Herald: New Zealand’s Economic Winds Of Change:

Chaos theory calls it the butterfly effect. It’s the idea that a butterfly flapping its wings in the Amazon could cause a tornado in Texas. The New Zealand economy has plenty of its own butterflies changing the weather for GDP growth, jobs, interest rates, inflation and house prices. [..] One of the flappiest at the moment is the global iron ore price. It’s barely noticed here but it’s an indicator of growing trouble inside our largest trading partner, China, and it is knocking our second-largest partner, Australia, for six. It fell to a 10-year low of almost US$50 a tonne this week and is down from a peak of more than US$170 a tonne in early 2011.
[…] President Xi has reinforced the contrasting effects of the changes in China on Australia and New Zealand by encouraging consumers and investors to spend more of China’s big trade surpluses overseas. Tourism from China was up 40% in the first two months of this year from a year ago, and there remains plenty of demand from investors in China for New Zealand assets.
The dark side of this tornado in New Zealand after the flapping of the butterfly’s wings in China was felt in Nelson this week. The region’s biggest logging trucking firm, Waimea Contract Carriers, was put into voluntary administration owing $14m, partly because of a slump in log exports to China in the past six months.
That’s because New Zealand’s logs are now mostly shipped to China to be timber boxing for the concrete being poured in its new “ghost” cities. The Chinese iron ore butterfly has flapped and now we’re seeing Gold Coast winter breaks become cheaper and logging contracts rarer.

█ Read full article

Website: http://theautomaticearth.com (provides unique analysis of economics, finance, politics and social dynamics in the context of Complexity Theory)

—

Posted by Elizabeth Kerr

Stadium costs +$20M per annum, against one Fleetwood Mac concert….

THIS DOESN’T SINK NEWS OF LATEST DELTA FINANCIAL BLOWOUT – NOBLE VILLAGE SUBDIVISION

I experienced Fleetwood Mac at Western Springs, Auckland in the 1980s, there is no way I want to see them live now in a crap-for-sound covered stadium at Dunedin. This cat has already eaten the cream. I might see them at Mt Smart, however.

How much has DCC/DVML paid to the promoter to get the band here?
They’ve spent $350,000 on tired roller Rod Stewart, who has yet to perform.

—

### ODT Online Fri, 20 Mar 2015
Fleetwood Mac to play Stadium
By Chris Morris
The rumours are true — Fleetwood Mac is coming to Dunedin. It was confirmed yesterday the group, one of the world’s best-selling bands, will perform its only South Island show at Forsyth Barr Stadium on Wednesday, November 18. Tickets costing between $100 and $300 plus fees will go on public sale from 10am on April 1, and a bumper crowd is predicted to pump millions of dollars into Dunedin’s economy. The British-American group’s Dunedin show will feature all five original band members, with Christine McVie having reunited with Mick Fleetwood, John McVie, Lindsey Buckingham and Stevie Nicks.
Read more

CroNix99 Uploaded on May 26, 2010
Fleetwood Mac – The Dance -1997 – Gypsy

CroNix99 Uploaded on Jul 2, 2010
Fleetwood Mac – Rhiannon – The Dance -1997

CroNix99 Uploaded on May 27, 2010
Fleetwood Mac – Landslide – 2004
Live In Boston – Say You Will Tour

—

Posted by Elizabeth Kerr

*Image: Fleetwood Mac – Christine McVie rejoining Fleetwood Mac 12.1.14 [pitchfork.com]

Malcolm Farry, revisited at Nine to Noon (December 2008)

WARM FUZZIES

### radionz.co.nz Friday, 12 Dec 2008
Radio NZ National
Nine to Noon with Kathryn Ryan

Carisbrook Stadium in trouble (Link)
09:30 Malcolm Farry, Chairman Carisbrook Stadium Trust; and Jeff Dickie, property investor and outspoken critic of the stadium.
Audio | Download: Ogg  MP3 ( 13′ 15″ )

—

Posted by Elizabeth Kerr

*Image: Malcolm Farry tweaked by whatifdunedin

DCC Draft Long Term Plan: more inanity from Cull’s crew pending

DANGER | WARNING SIGNS | DESPAIR
CORRUPTION PET PROJECTS MORE DEBT HIGHER RATES SAME AGAIN

yay

### dunedintv.co.nz January 14, 2015 – 5:41pm
DCC prepares to launch into draft long term plan
The Dunedin City Council is preparing to launch into its draft 2015/2016 long term plan. Councillors will begin formal discussion of the document next week.

The long term plan outlines the council’s financial strategy for the next ten years. It takes into consideration major changes and development, in respect of infrastructure, assets, services and economic development.

The plan also highlights how the council intends to fund work, with information about budgets, financial sources and changes to rates. A final version will be prepared after public consultation, which will begin in mid-March.
Ch39 Link [no video available]

f***

—

Posted by Elizabeth Kerr

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

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

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

—

[screenshot]

—

Posted by Elizabeth Kerr

Stadium Review: LGOIMA request and 2009 Town Hall speeches

████ Download: Stadium Review Nov v 15 (585 KB, DOC)

Copy received from Bev Butler
Sun, 30 Nov at 12:17 p.m.

Message: A while back I was told there was Rugby pressure happening behind the scenes to exclude the mothballing option.
Cheers, Bev

From: Bev Butler
To: Sandy Graham [DCC]; Grace Ockwell [DCC]
Subject: LGOIMA REQUEST: Stadium Review/Mothballing
Date: Sun, 30 Nov 2014 12:10:47 +1300

Sunday 30 November 2014

Dear Sandy and Grace

Earlier in the year it was announced that the stadium was to be reviewed and that all options would be considered, including mothballing.
Now with the recent release of the Stadium Review only two options are presented, namely, the status quo and the most extreme option of demolition.
1. Why were the options of sale and mothballing not reported on?
2. Did the Stadium Review committee look at the sale and mothballing options? If so, I request a copy of the findings. If not, why not?
3. Whose decision (names) was it to not include mothballing as an option?
4. Did the NZRU and/or ORFU have any input into the Review? If so, I request a copy of all documentation.
5. Who (names) from the NZRU/ORFU was consulted/involved in the Review?
6. Did any member of NZRU and/or ORFU influence/pressure/request that the mothballing option be removed/excluded from the Review? If so, who (names)?
7. Mayor Cull has publicly stated that the demolition option was included in the Review to show the “lunatic fringe” that demolition is not a realistic option.
a) Who (names) are the “lunatic fringe”?
b) If Mayor Cull is unable to name members of the “lunatic fringe” then why was the demolition option considered?
c) Why were the mothballing options not considered when well informed stadium critics had publicly called for this option? ie. Why was the extreme option from an unidentified “lunatic fringe” considered over the mothballing option proposed by identifiable well informed stadium critics, like myself, who have been proven correct in their predictions?
8. What part did Sir John Hansen play in stifling the mothballing option?
9. Will the mothballing options now be reviewed?

Yours sincerely
Bev Butler

___________________________________

REFRESH
Speeches made to Stop The Stadium public meeting held at Dunedin Town Hall on 29 March 2009:

● Alistair Broad
● Dave Cull
● Gerry Eckhoff
● Michael Stedman
● Sukhi Turner

Speeches to Otago Regional Council (ORC) public forums for stadium:

● Public Forum Speech to ORC by Bev Butler 11.2.09 – stadium meeting
● Public Forum Speech to ORC by Bev Butler 3.3.09

___________________________________

On behalf of ratepayers and residents Dunedin City Council decided on and publicly listed ten conditions (10 lines in the sand) to be met for the stadium project. Unfortunately, this summary table shows the extent of departure!

Received from Bev Butler – Summary of Conditions
Sat, 29 Nov 2014 at 7.44 a.m.

[click to enlarge]

Recent Posts and Comments:
26.11.14 Cr Hilary Calvert, an embarrassment
22.11.14 ODT puffery for stadium rousing ?
21.11.14 Stadium Review: Mayor Cull exposed
19.11.14 Forsyth Barr Stadium Review
15.11.14 Stadium #TotalFail

—

Posted by Elizabeth Kerr

ODT puffery for stadium rousing ?

The banner at today’s ODT Online home page

Received, a snapshot at 11:14 a.m. (to read the article get the latest budgie cage liner full of advertising with not much else EXCEPT an exclusive interview)

Oh Dear Times —
Sue Bidrose, ‘I’ve always said I just don’t want to work for someone who’s not as good as me’.

Alternative text, just an observation —
From King James Bible, Psalms 8:2, “Out of the mouth of babes and sucklings hast thou ordained strength”.

Updated post 23.11.14 at 10:47 a.m.
● Read the interview (Sunday release) at ODT Online

—

The completely under-researched yet highly threshed and winnowed
Fubar Stadium Review released on Thursday 20 November will be tabled at Monday’s Extraordinary Council Meeting (Edinburgh Room, Municipal Chambers at 1:00 PM).

████ Download: Stadium Review Nov v 15 (585 KB, DOC)

As to timing of review and puffery, coincidence?

ODT used the same new face the day before to sell the ‘Stadium in the black’ message (see Friday’s front page graphic)

—

Anything for tenure. The motorbike makes her one of the boys, and the girls. This popularity farce-triumph(ant) is costing ratepayers +$20million pa.

The newspaper can’t distract from an extremely inadequate Stadium Review by throwing us lines about a recreational biker’s “life, job and sleepless nights”. There’s a public excluded Chief Executive Appraisal and Appointment Committee meeting at the Mayor’s Office on Monday 8 December, 8:00 AM.

—

Related Post and Comments:
21.11.14 Stadium Review: Mayor Cull exposed
20.11.14 Forsyth Barr Stadium Review

—

Posted by Elizabeth Kerr

Stadium Review: Mayor Cull exposed

### radionz.co.nz Thursday 20 November 2014
Checkpoint with Mary Wilson
Dunedin Mayor: ‘Stadium is not a lemon’
A Dunedin City Council report has looked into demolishing the city’s covered rugby stadium built for 200 million dollars just three years ago.
Audio | Download: Ogg  MP3 (4:48)

████ Download: Stadium Review Nov v 15 (585 KB, DOC)

● 15.3.11 Post: Cr Dave Cull speech to Town Hall Meeting [31.3.09]
● 27.4.09 Post: Contract signed

—

### stuff.co.nz Last updated 09:08 21/11/2014 | Southland Times
Stadium demolition option only for ‘lunatics’
By Wilma McKay
Dunedin’s mayor has said the city council only included an option to demolish the city’s stadium to shut down “a lunatic fringe”. In an interview with Mary Wilson from Radio New Zealand, Dunedin mayor Dave Cull said demolition was included in a review of stadium funding, ownership and operation “to put to bed the frequent and strident claims of a lunatic fringe”. Cull described the opposing group as “a small vociferous band of critics all the way along through this process who have said it would be much better to knock [the stadium] over”. “So, we said ‘okay, we’ll look at that option, we’ll cost it, and that should put it to bed once and for all’,” he said in the interview. As it turned out demolition proved unworkable economically, Cull said.
City councillors are to gather for an extraordinary meeting on Monday to discuss its recommendations out of the review, including one that ratepayers stump up $18.1 million extra over the next 10 years to keep the arena afloat.
Read more

● Stuff: Stadium under fire as city eyes next steps | Southland Times

****

### ODT Online Fri, 21 Nov 2014
Stadium review ‘kick in the guts for ratepayers’
By Chris Morris
Dunedin city councillors are preparing for a fresh war of words over Forsyth Barr Stadium, following confirmation it needs another $1.81million a year from ratepayers. The extra costs, together with a nearly $1million budget hole to be plugged by mid-2015, would see nearly $20million in extra ratepayer funding pumped into the venue over the next decade.
The findings – outlined with the release of the Dunedin City Council’s stadium review yesterday – prompted a mixture of resigned acceptance and recriminations from some councillors.
Read more

● ODT: ‘I don’t think we had much choice’- councillor
[Richard Thomson, chairman, DCC Finance Committee]

Agenda for Extraordinary Meeting | Monday 24 Nov at 1.00 PM
Venue: Edinburgh Room, Municipal Chambers

—

Related Posts and Comments:
19.11.14 Forsyth Barr Stadium Review
15.11.14 Stadium #TotalFail
12.11.14 DVML: Two directors gone before release of stadium review
8.10.14 Stadium: Liability Cull warns ratepayers could pay more to DVML
6.10.14 Stadium misses —like it would ever happen, Terry
4.10.14 DCHL & DVML: Call for directors
30.9.14 DCHL financial result
25.9.14 DVML on Otago Rugby and Rod
13.9.14 DVML and ORFU refuse to disclose 2012 Otago Rugby deal
10.9.14 Stadium: Behaviours at Suite 29 (intrepid tales)
8.9.14 Jim Harland and the stadium MESS
28.8.14 Stadium Review: dark yet rosy thoughts [joke, honest]
15.7.14 Stadium: Who is being protected?
15.7.14 Rugby stadiums not filling #SkyTV
29.6.14 Stadium: NZRU in the sights
24.6.14 Stadium: DVML, mothballing, and ‘those TVs’ #LGOIMA
18.6.14 Crowe Horwath Report (May 2014) – Review of DVML Expenses
13.5.14 Stadium benefits, what?! (Copeman)
11.5.14 Stadium: DCC proposes extra funds for stadium debt repayment
5.3.14 Stadium: Fairfax business editor pokes DCC’s Fubar
26.2.14 Stadium costs, read uncapped multimillion-dollar LOSSES
24.2.14 Carisbrook Stadium Trust: ‘Facts about the new Stadium’ (31.5.08)
22.2.14 Carisbrook Stadium Trust costs
2.2.14 Stadium: ODT editorial (1.2.14) —Garbutt debunks myths
1.2.14 Stadium: ODT editorial (1.2.14) —“Palpable claptrap” says Oaten
27.1.14 Stadium: No 4 at interest.co.nz
24.1.14 Stadium: It came to pass . . . [stadium review announced]

█ For more, enter *stadium*, *dvml*, *terry davies*, *cst*, *dchl*, *dcc*, *annual plan*, *rugby* or *carisbrook* in the search box at right.
ODT 31.5.08 (advertisement) | PDF fax copy cleaned by whatifdunedin
[click to enlarge]

—

Posted by Elizabeth Kerr

Forsyth Barr Stadium Review

Updated post 20.11.14 at 2:31 p.m.

████ Download: Stadium Review Nov v 15 (585 KB, DOC)

This Report should be left on the table by Councillors at the Extraordinary Council Meeting on Monday 24 November, since the implications of the Review’s published content and lack of content are very serious indeed.

—

Posted by Elizabeth Kerr

DCC: What happened to $20 million cash on hand? #LGOIMA

1. Council had $22 million cash on hand.
2. Council spent $20 million (cash) on “capital projects”.
3. Council won’t account for the $20 million.
4. Council seeks open cheque to make discovery.

█ Report – FIN – 08/09/2014 (PDF, 2.3 MB)
Interim Financial Result – 12 Months to 30 June 2014

—

On 8 September 2014, the Council’s interim financial result for 12 months to 30 June 2014 was tabled at a meeting of the Finance Committee. A week later, ODT (15.9.14) reported Mayor Cull as saying there was a “significant improvement” to the Council’s core debt position.

In the same item, “Council group chief financial officer Grant McKenzie said the turnaround was partly due to a significant change in the amount of cash held by the council. The forecast had included about $22 million in “cash on hand”, but, since Mr McKenzie’s arrival, the decision had been made to slash the amount to about $2 million, he said. The cash was instead used to pay for capital projects, avoiding the expected need to borrow for the work, which reduced the council’s need to borrow by $20 million, he said.” ODT Link

What if? flagged the ‘cash-no-longer-on-hand’ illumination with a post:
● 15.9.14 Cull’s council spent the cash

Capital projects?
How was the money spent, and who by?
Then, we completely lost sight of it.
As the following correspondence shows, Council spent $20 million of ratepayer funds but refuses to declare where the cash went. Mr McKenzie plays the convenient game of obfuscation —like so many before him, and alongside him now at DCC.

█ Apparently, I’m to be personally charged for demanding relevant paperwork to track down the Public Money.

Accountability? Transparency? What the HELL is that?
NOT something DCC values, that’s a dead cert.

[begins]

From: Elizabeth Kerr
Sent: Tuesday, 23 September 2014 11:13 p.m.
To: Sandy Graham [DCC Group Manager Corporate Services]
Subject: LGOIMA request

Dear Sandy

Re: Cull warns debt still hurdle for council (ODT 15.9.14)http://www.odt.co.nz/news/dunedin/315949/cull-warns-debt-still-hurdle-council

Within the news item it says:

“The forecast had included about $22 million in “cash on hand”, but, since Mr McKenzie’s arrival, the decision had been made to slash the amount to about $2 million, he said.

“The cash was instead used to pay for capital projects, avoiding the expected need to borrow for the work, which reduced the council’s need to borrow by $20 million, he said.”

I would like the DCC to precisely itemise the way(s) in which the city council has spent this $20 million of “cash on hand”, to include the capital projects by name or other reference; the name(s) of the relevant council department(s) and or committee(s) that incurred this expenditure; the dates of expenditure; the spending delegations attributable to which, by name, formal signatories on account; and any other information in legible form that would assist the city council to meet my request in a forthright, full and transparent manner.

I look forward to reply.

Thanks, kind regards

Elizabeth Kerr

__________________________

From: Sandy Graham [DCC]
Sent: ‎Wednesday‎, ‎24‎ ‎September‎ ‎2014 ‎9‎:‎01‎ ‎a.m.
To: Elizabeth Kerr
Cc: Grace Ockwell [DCC]

Thanks Elizabeth

I have forwarded to staff to consider and a response will be provided as soon as possible but in any event within twenty working days. It may be that I need to come back to you with questions of clarification or refinement depending on how this information is stored/held but I will be in touch as required.

Warm regards
Sandy

__________________________

From: Elizabeth Kerr
Sent: Friday, 31 October 2014 1:42 p.m.
To: Sandy Graham [DCC]
Cc: Grace Ockwell [DCC]
Subject: Re: LGOIMA request [DCC expenditure of $20M cash on hand]

Dear Sandy

The official information request I made on 23 September 2014 (see emails [above]) is yet to have a response, we are now well outside the twenty working day limit.

Please provide update on how soon the information will be released.

Many thanks, and kind regards

Elizabeth

__________________________

From: Sandy Graham [DCC]
Sent: ‎Friday‎, ‎31‎ ‎October‎ ‎2014 ‎2‎:‎03‎ ‎p.m.
To: Elizabeth Kerr
Cc: Grace Ockwell [DCC]

Sorry Elizabeth.

My fault. I had been supplied with a response and had not forwarded it.

The Group Chief Financial Officer advises:

“This request cannot be completed for what they are requesting as I do not know what capital and operating activity we would assign to the $20 million. In addition the work involved in getting the invoices etc would be significant. What has happened is that we have used our cash on hand to fund council activity (operating and capital) instead of borrowing to do this.”

If you would like me to pursue the possibility of tracking down invoices, I would need to consider charging for this work because there would be significant collation and research required, and even then, we may not be able to fully answer your question. Let me know if you would like me to investigate this further.

The GCFO has indicated he is happy to meet and talk through the issues but is unable to provide any further information at this stage.

Again, apologies for my tardiness.

Sandy

__________________________

From: Elizabeth Kerr [mailto:ejkerr@ihug.co.nz]
Sent: Friday, 31 October 2014 2:05 p.m.
To: Sandy Graham [DCC]
Cc: Grace Ockwell [DCC]; Grant McKenzie [DCC GCFO]
Subject: Re: LGOIMA request [DCC expenditure of $20M cash on hand]

Dear Sandy

Thanks for getting back to me promptly today. I acknowledge receipt.

I’m considering your response fully and as a consequence looking into all my options.

Kind regards, Elizabeth

[ends]

—

Serendipitously, the same day (31.10.14), I heard from Cr Lee Vandervis —unbeknownst to me, a couple of days earlier he had voiced a similar query about the [MISSING PRESUMED DROWNED] $20 million “cash on hand”, and more, following his study of the Council’s Annual Report 2013-14.

█ Report – Council – 30/10/14 (PDF, 2.5 MB)
Approval and Adoption of Annual Report

[begins]

—— Forwarded Message
From: Lee Vandervis
Date: Tue, 28 Oct 2014 22:38:15 +1300
To: Sue Bidrose [DCC], Sandy Graham [DCC]
Conversation: Annual Report
Subject: Annual Report

Hi Sue,

The beginning of the Annual Report seems very reassuring with your highlighting our billion dollars worth of saleable assets, and our debt levels in pretty good shape and improving.

Looking further into the body of the report there is a lot of tabulation of various kinds of assets, but I seem not to be able to find the same depth of discussion on debt or the historical debt graph that I fought for years to finally get included. [A Consolidated term liabilities figure of $622,843,000 does appear on p199. I had been led to expect a historical graph of DCC debt and of total consolidated debt]
Is it possible to also have a graph of all inclusive historical staff costs included? There was one a while ago but it seems to have been dropped again.

At the end of the document I find a number of graphs that feature a fetching orange colour bar that seems to indicate that our “thriving and diverse economy” under Affordability has exceeded our LTP quantified limit on rates income in 2013 and 2014, exceeded the quantified limit on rates increase this year, slipped below the balanced budget benchmark, and also slipped below the essential services benchmark for this year.
It is no surprise to me that Citipark has not achieved targets, but I am surprised that your opening comments are so upbeat when the closing benchmarks are not met and the quantified limits seem to be exceeded.
These benchmark and limit graphs may have been misinterpreted by me because despite reading them several times I remain unsure of their real import.
Is it possible for someone to explain to me how the ‘pretty good shape and improving’ overview is supported, especially in light of the $20 million cut [from $22 million] in cash on hand and various sales that we have apparently recently instituted, combined with further expected constraints on DCHL subvention payments?

Looking forward,
Lee
__________________________

—— Forwarded Message
From: Lee Vandervis
Date: Fri, 31 Oct 2014 15:34:29 +1300
To: Debbie Porteous [ODT], Nicholas GS Smith [ODT]
Conversation: Annual Report
Subject: FW: Annual Report

Hi Debbie,
The Tuesday 28th email [above], which still remains unanswered, may help explain some of what deeply concerns me regarding yet another DCC Annual Report presented as up-beat.

Kind regards,
Cr. Vandervis
—— End of Forwarded Message
—— End of Forwarded Message

[ends]

If there was a plot to hide the way $20 million slid from sight, it thickens.
Not done yet, because I’m not a turkey dinner.

—

Posted by Elizabeth Kerr

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

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

interest.co.nz on today’s Dunedin City bond issue

Simply…

### interest.co.nz October 8, 2014 – 04:00pm
Post by David Chaston
A review of things you need to know before you go home on Wednesday; record beef prices, new Wtgn quake faultline, fewer home loan approvals, Dunedin borrows $70 mln, swap rates fall
Link

Crap!

—

Tweets:

What if Dunedin (@whatifdunedin) tweeted at 10:09 PM on Wed, Oct 08, 2014:
@sue_bidrose news today Dunedin City is doing more borrowing – to be precise, it has issued $70 million of bonds at 4.88% #laughorcry :(

Sue Bidrose (@sue_bidrose) tweeted at 10:14 PM on Wed, Oct 08, 2014:
@whatifdunedin yep – money comes off term borrowings and gets refixed. Not new borrowings – our debt continues to decline (very slowly)

What if Dunedin (@whatifdunedin) tweeted at 10:18 PM on Wed, Oct 08, 2014:
@sue_bidrose unfortunately, it’s gone out on interest.co.nz website as MORE borrowing so Dunedin City has a little PR problem

Sue Bidrose (@sue_bidrose) tweeted at 10:21 PM on Wed, Oct 08, 2014:
@whatifdunedin Thanks. Bugger.

—

Updated post 13.10.14 at 10:55 a.m.

Total debt of the council group of companies was $621 million on June 30.
Move saves city $1 million a year in interest on seven-year loan.

### ODT Online on Mon, 13 Oct 2014
City debt overhaul to save millions
By David Loughrey
Dunedin is set to save $7 million after better economic times meant the city council was able to renegotiate a $75 million loan. Council company Dunedin City Treasury has renegotiated the loan through ANZ and Westpac.
Read more

—

Posted by Elizabeth Kerr

DCC considers sale of “149 properties”

Tomorrow’s ODT carries carefully arranged details…

Kevin Taylor, City Property “good, bad and ugly” manager

—

Updated post 19.9.14 at 11:29 a.m.

### ODT Online Fri, 19 Sep 2014
$10m property sell-off possible
By David Loughrey
Houses, empty sections and parkland are among 149 parcels of property across Dunedin being considered for sale, as the city council looks to add $10 million to its coffers. The council released its “work in progress” list after a Local Government Official Information and Meetings Act request from the Otago Daily Times. […] Council infrastructure and networks general manager Tony Avery yesterday said the list was a starting point.
Read more

—

News conferred last week:
█ Cr Lee Vandervis now sits on the DCC Audit and Risk Subcommittee. [ Minutes ]

—

Related Posts and Comments:
15.9.14 Cull’s council spent the cash
11.9.14 DCTL: New treasury manager
1.9.14 DCC Fraud: Further official information in reply to Cr Vandervis
30.8.14 DCC Fraud: Cr Vandervis states urgent need for facts and the record…
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)
22.8.14 DCC: Deloitte report referred to the police #Citifleet
7.8.14 DCC issues shoddy treatment to Caledonian Bowling Club
● 30.7.14 Dunedin City Council | Consolidated council debt
● 28.4.14 DCC loses City Property manager in restructuring
24.1.14 Stadium: It came to pass… [stadium review]
14.10.13 DCC: New chief financial officer
21.3.13 DCC: Opportunity created by Stephens’ departure
6.3.13 Carisbrook: Cr Vandervis elaborates
20.11.12 Dunedin City Council vs Anzide Properties decision…
9.6.12 City Property to compete more obviously in the market…

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Posted by Elizabeth Kerr

*Image: odt.co.nz (tweaked by whatifdunedin) – Kevin Taylor blackened, a bit

DCTL: New treasury manager

Dunedin City Council – Media release
DCC Appoints Treasury Manager

This item was published on 10 Sep 2014

Richard Davey has been appointed to the new position of Dunedin City Council Treasury Manager. Mr Davey, who is originally from Dunedin, has had more than 21 years of banking experience in New Zealand and Australia. His experience centres on dealing with corporate treasuries and solving their risk management and funding issues.

As Treasury Manager, Mr Davey will oversee Dunedin City Treasury Ltd – a DCC-owned company provides funding and financial services to other companies in the Dunedin City Holdings Ltd group. Mr Davey will report to Group Chief Financial Officer Grant McKenzie.

Mr McKenzie says, “We are delighted to announce Mr Davey’s appointment. His extensive skills and experience mean he will be a welcome addition to the DCC’s financial team.”

Mr Davey says, “I am very pleased to be part of the DCC’s financial team, especially given the diverse treasury operations and exposures the group has. It’s also pleasing to be able to live in Dunedin and progress my career further with the Council.”

Mr Davey was most recently Director Corporate and Institutional Markets with the National Australia Bank in Melbourne. He has a Bachelor of Commerce and a Postgraduate Diploma in Commerce from the University of Otago.

The new Treasury Manager role was created following the retirement of Dunedin City Treasury Ltd Chief Executive John Knight, who left last month. Mr Davey starts in his new role on Monday, 15 September.

Contact Group Chief Financial Officer on 03 477 4000.
DCC Link

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### dunedintv.co.nz September 11, 2014 – 5:56pm
DCC in a better financial position
The Dunedin City Council is in a better financial position than it had forecast for the financial year just finished. An interim result for the council during the last twelve months was presented to councillors this week. And while there are things to be celebrated, it’s not all good news on the council’s books.
Video

█ Report – FIN – 08/09/2014 (PDF, 2.3 MB)
Interim Financial Result – 12 Months to 31 June 2014

█ Report – FIN – 08/09/2014 (PDF, 668.6 KB)
Financial Result – 1 Month to 31 July 2014

█ Report – FIN – 08/09/2014 (PDF, 391.2 KB)
Waipori Fund Quarterly Report to June 2014

Related Posts and Comments:
23.8.14 DCC public finance forum 12.8.14 (ten slides)
14.10.13 DCC: New chief financial officer

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Posted by Elizabeth Kerr

*Image: odt.co.nz (tweaked by whatifdunedin) – Richard Davey

DCC: Forensics for kids

Fairfax Media has obtained Audit NZ letters of management to the DCC from 2005 to 2012, released under the Local Government Official Information and Meetings Act. The letters show that in the years 2007-2010 auditors consistently urged the DCC to tighten up its risk-management policies and processes.

Audit NZ expressed concern over what it indicated could be inadequate controls over several internal processes, including verifying signatures of those authorised to sign invoices and purchase orders, independent review of creditor files, and controls of sensitive areas such as sale of council assets to staff. (Fairfax)

### stuff.co.nz Last updated 08:17 26/08/2014
Dunedin council officers ‘not kids’
By Wilma McCorkindale
The Dunedin City Council (DCC) appears to have ignored calls by Audit New Zealand to improve its risk and fraud processes, saying its officers were “supposedly people with integrity … not kids”.

The DCC revealed in June it was investigating a suspected major fraud within its Citifleet unit. The fraud was suspected to have been carried out over a decade. Citifleet team leader Brent Bachop died suddenly in May. His death has been referred to the coroner. Council chief executive Dr Sue Bidrose said the alleged fraud of $1.5 million included alleged illegal transactions resulting in the loss of profits from the sale of 123 council fleet vehicles. The findings have been passed to the Dunedin police for further investigation.

Fairfax Media has obtained Audit NZ letters of management to the DCC from 2005 to 2012, released under the Local Government Official Information and Meetings Act. The letters show that in the years 2007-2010 auditors consistently urged the DCC to tighten up its risk-management policies and processes. It appears Audit NZ was compelled to repeat similar advice over the period and noted the DCC met only minimum requirements.

Council managers’ response to the Audit NZ findings in 2010 was to say the council had considered creating an audit and risk committee but concluded its finance and strategy committee adequately performed the role. In December 2010 Audit NZ raised the issue of reviews of areas “susceptible to fraud”, but management commented that specific audits in the “most sensitive areas” had found “no transactions of concern or deficiencies in controls”.
Read more

Five council staff were involved in “employment processes”, with some facing the prospect of losing their jobs, the ODT understands.

[Irony] Local Government New Zealand president Lawrence Yule yesterday told the ODT the “mind-boggling” alleged fraud was the biggest involving a local authority he could recall.

### ODT Online Tue, 26 Aug 2014
Council overlooked audit advice
By Chris Morris
Dunedin Mayor Dave Cull concedes a chance to detect the alleged $1.5 million Citifleet fraud may have been missed, after the council twice overlooked advice from Audit New Zealand. The revelation came in Audit New Zealand’s annual reports to the council, obtained by the Otago Daily Times, which highlighted gaps in council processes dating back to 2003. […] The findings have triggered finger-pointing between past and present council staff, councillors and Audit NZ, but council chief executive Dr Sue Bidrose said responsibility for failing to detect the alleged fraud rested with the council.
Read more

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Related Posts and Comments:
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

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Posted by Elizabeth Kerr

*Images (tweaked by whatifdunedin): tmba.tv – Tim McGarvey: 3D forensic animation (TMBA Inc. Animation Studio, New York City); scottthornbury.wordpress.com – F is for forensics (illustration by Quentin Blake, from Broughton, G. (1968) Success With English. Harmondsworth: Penguin)

DCC public finance forum 12.8.14 (ten slides)

The ten powerslides presented by DCC group chief financial officer Grant McKenzie, as discussed at the public finance forum held earlier this month are available for download (see PDF below).

Figures might be, but the forum was advertised….

Public notices advertising the forum and the warm invitation extended by Cr Richard Thomson, chair of the Finance Committee, were unfortunately met with low attendance on the night. Few of the well-known vocal commentators on DCC’s financial position, or indeed, leaders of the Otago Chamber of Commerce, bothered to show. Those individuals lose a measure of credibility. Where were all the beleaguered ratepayers and residents? The local ‘interested’ accountants, economists, board directors, investors, and successful business people? Their apologies? Has everybody drowned with rising sea levels or been knocked from their bikes on the one-way? Blame Dave Cull.

Rob Hamlin and ‘JimmyJones’ did make the effort to be there, solidly plying their observations and questions in debate. Other members of the public also engaged. We didn’t hear the names of people who forwarded questions prior to the meeting, or what their questions were. Notwithstanding, the slides are the Council’s attempt to respond to issues commonly raised, in summary.

The first public finance forum was held on 27 November 2013. The second on 12 August was an opportunity to hear Grant McKenzie who arrived at the Council in January. He proves to be approachable, mild-humoured and self-effacing. Grant explores the expanded GCFO role ably supported by senior finance staff; his already onerous duties include the overlay of current fraud investigations, new systems for accountability and risk management, as well as the stadium review (due in September).

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[click slides to enlarge – scanned from forum handout]

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█ DCC Finance Forum (powerslides 1-10) (PDF, 18.6 MB)

For more information on DCC, enter the terms *finance*, *dcc*, *dchl*, *delta*, *cst* *dvml* or *stadium* in the search box at right.

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Other Reading – link supplied by Calvin Oaten
Sat, 23 Aug 2014 at 12:08 p.m.

An interconnected world was meant to reduce inequality – but that doesn’t seem to be happening.

### blogs.telegraph.co.uk August 22, 2014 13:18
Finance
Nobel gurus fear globalisation is going horribly wrong (technical)
By Ambrose Evans-Pritchard
David Ricardo’s Theory of Comparative Advantage has broken down after 200 years, or so I learned at the Lindau forum of Nobel laureates in Bavaria. The theory published in 1817 has been a guiding principle of free trade, taken as a given by every student of economics in the modern era. It has served us well, but just as Newton’s theories ran into limits and were overtaken by Einstein’s relativity, comparative advantage no longer explains the world. Under Ricardo’s model, inequality was supposed to narrow within countries as globalisation accelerated exponentially in the Nineties. Instead it is getting wider. The Gini coefficient measuring the spread between rich and poor is narrowing between countries, but is widening almost everywhere within countries, leading to a corrosive concentration….
Read more

● Ambrose Evans-Pritchard has covered world politics and economics for 30 years, based in Europe, the US, and Latin America. He joined the Telegraph in 1991, serving as Washington correspondent and later Europe correspondent in Brussels. He is now International Business Editor in London.

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Posted by Elizabeth Kerr

*Images: (from the top) Facebook – yahoofinance (advert); goodcars.co.nz – Finance your next car (advert); nzvf.co.nz – New Zealand Vehicle Finance (advert)

DCC: Deloitte report referred to the police #Citifleet

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

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█ 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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Posted by Elizabeth Kerr

John Ward, no mention of stadium or CST trusteeship

The University of Otago chose to profile its chancellor, Invercargill’s John Ward, in the June 2014 issue of Otago Magazine (pages 22-24). Note Mr Ward omits to mention the Stadium, or his trusteeship on the Carisbrook Stadium (Charitable) Trust. Isn’t that funny. Well, he looks a bit pursed in the photograph anyway.

Source: http://www.otago.ac.nz/otagomagazine/otago072837.pdf
Thumbnail: Photo by Alan Dove

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Related Posts and Comments:
20.5.14 Tim Hunter on Ward, McLauchlan, Hayne #Highlanders
10.2.14 University of Otago major sponsor for Highlanders
31.5.13 University of Otago development plans

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Posted by Elizabeth Kerr

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

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

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Posted by Elizabeth Kerr

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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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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Posted by Elizabeth Kerr

Stadium: DCC proposes extra funds for stadium debt repayment

Comment received from Mike
Submitted on 2014/05/11 at 12:42 pm

Now is a great time to remind people of section 63 the Local Government Act which reads:

Restriction on lending to council-controlled trading organisation
A local authority must not lend money, or provide any other financial accommodation, to a council-controlled trading organisation on terms and conditions that are more favourable to the council-controlled trading organisation than those that would apply if the local authority were (without charging any rate or rate revenue as security) borrowing the money or obtaining the financial accommodation.

http://www.legislation.govt.nz/act/public/2002/0084/latest/DLM171886.html

Which as I read it means that the council can’t fund DVML in a more advantageous way than it would receive itself from its own bankers – my reading of this is that just bailing DVML because it’s losing money would be illegal, they have to loan them money at a comparative rate to what they would get from the bank.

It’s an obvious target for a ratepayer’s injunction …..

The reason for this law is pretty obvious, the government wanted CCOs to compete with private enterprise on a level playing field – if DVML wants to rent out space it shouldn’t be able to undercut a competing landlord who can’t tap the ratepayers’ pockets to charge a rent below cost.

[ends]

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Dunedin City Council – Media Release 9 May 2014
Extra Funds Proposed for Stadium Debt Repayment
The Dunedin City Council will consider using savings to repay more debt associated with the Forsyth Barr Stadium. The Council will next week consider approving a one-off payment of $2.271 million to help balance the Forsyth Barr Stadium accounts. Of that, $1.77 million would be used to repay DVML debt, with the balance to fund a cash shortfall. The payment would be funded from DCC savings made in the current financial year. DCC Group Chief Financial Officer Grant McKenzie says, “A one-off payment to reduce debt further would be good for all parties and would clearly respond to community demand for the DCC to reduce its overall debt level.” Read more

█ Download the Forsyth Barr Stadium 2014/15 Budget Report (PDF, 200KB)

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Media Stories:
9.5.14 ODT Stadium debt reduction to be considered
9.5.14 Stuff (Fairfax News) Stadium could cost Dunedin ratepayers millions
10.5.14 ODT Stadium payment may rise

Related Post and Comments:
9.5.14 DCC Draft Annual Plan 2014/15 Submission by Bev Butler
10.5.15 (via comment) ODT In Brief: Stadium review sought

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Posted by Elizabeth Kerr

DCC Draft Annual Plan 2014/15 Submission by Bev Butler

Received Friday, 9 May 2014 at 12:00 p.m.

Submission to DCC Annual Plan 2014/15 by Bev Butler

Thank you for the opportunity to speak to my submission.

I would like to express my support for the stadium review announced a few months ago.

Stadium Review

Due to concerns expressed by various members of the community, and my own growing concerns about the stadium issue, I decided to enquire into spending by DVML, through LGOIMA. It soon became clear that inappropriate spending had been occurring for some time within DVML eg hotel bills for up to $US350 per night etc. Purchase of boys t-shirts, gloves, hat, chewing gum and shaving gear. These are not business expenses. It is clear from some of the expenditure claimed that there is an ingrained sense of entitlement, which is unacceptable.

I understood that Council staff have been committed to curbing their budgets because of the debt problem and were unhappy to see the unbridled spending occurring within DVML. It wasn’t without its difficulties to obtain this information – DVML didn’t release it willingly. DVML treated the request as an imposition rather than an obligation. I was however – persuasive. Without the mechanism of LGOIMA requests some of this information may not have seen the light of day and hence steps made to address this wastage. It was reported in the ODT recently that DVML are now looking into charging for the future release of information. I believe this is a retrograde step: the purpose of acquiring official information is an important check on how public officers use public money or carry out their duties. Without it, unbridled corruption could occur.

Unfortunately for the Carisbrook Stadium Trust, they also operated inappropriately never dreaming that a group of citizens including myself would request information officially to expose their inappropriate spending. In fact, the former CEO, Jim Harland, informed me in 2008 that the CST was not subject to LGOIMA. What Mr Harland failed to tell me was that he had sought two legal opinions which both confirmed that CST was subject to LGOIMA through the DCC under section 2(6). To this day, Mr Malcolm Farry still shows considerable resistance to this and I have had to make several complaints to the Office of the Ombudsman. Mr Farry could have been prosecuted under the Ombudsman Act for his obstructiveness in releasing certain information should the Ombudsman have chosen to do so.

Why has this group of citizens continued to obtain information about the construction of the stadium? After all, it is now built and why don’t people just move on, as some say. I shall now explain why many people have not let go as would normally be expected.

Some may recall after the Christchurch earthquake there was a news item on TV1’s Close Up program. Shock and horror was expressed over invoices being sent to Christchurch residents for repair of their chimneys damaged in the quake. These invoices were for $2,000 and criticism was expressed at so little detail on these invoices. They just stated labour and materials $2,000. This was considered completely inappropriate invoicing and at the time there were questions of possible fraud.

Well, those quake invoices pale into petty significance compared with the CST invoicing. The CST presented millions of dollars worth of invoices to the DCC with merely two words on them: “Trust costs”. And, furthermore, this is after the Auditor General stated in his September 2007 report that no payments would be made to the CST without detailed invoices.

The former DCC Chief Financial Officer also sent me a letter in October 2007 stating that no CST invoices would be paid without third party invoices to support them. It was recently stated in an official information request that these third party invoices do not exist. In response, Mr Farry has now produced some paperwork, which the DCC is processing. This should have been done at the time and not retrospectively. When discussing this with a lawyer I said that the CST invoice process left the door wide open for fraud. The lawyer’s response was: “Not an open door, Bev, but a bloody great cavity!”

I emphasise that I am not saying that fraud occurred, what I am saying is the process was so flawed that no-one would know whether fraud had occurred or not. There is no statute of limitations on private or public fraud. According to the CST financial statements presented to the Charities Commission more than $71 million of public money went through this Trust. Every single dollar must be accounted for. Personally, I think it appalling that the process was so sloppy given that all the CST trustees are so-called top business people including two accountants. At best it shows the sheer arrogance of those trustees. I have also found other unexplained discrepancies in some of their financial reporting which I will deal with in another forum.

Another reason why a group of citizens are still investigating the stadium is because we believe criminal activity may have occurred.
So the issue is not whether you are pro or anti stadium but whether you are pro or anti corruption.

Outcomes from the stadium review

What I hope eventually comes out as a result of the stadium review includes:

1. A cost/benefit analysis of all the possible scenarios for the stadium including:
(a) Retaining the stadium under DVL ownership and DVML management
(b) Bringing the stadium “in house” under direct DCC ownership and management
(c) Privatising the stadium
(d) Mothballing the stadium until the private funding is raised as was promised by the CST prior to the stadium construction.

2. A cost/benefit analysis of the natural turf vs artificial turf .

3. An honest, full analysis of the entire stadium costs – by this I mean a report showing ALL annual costs of the stadium including DVML costs, DVL costs, DCHL costs (including from all the companies directly and indirectly). Ratepayers deserve an honest assessment – it won’t make ratepayers feel any better but at least we will know the full extent of the cost of the stadium. Many people think that the stadium costs Council just a million or two per year when in actual fact it is costing Council approximately $20 million per year overall, directly or indirectly. Ratepayers have a right to know. It is also very difficult to expect Council to make decisions when they are not presented with the full extent of stadium costs.

4. A formal request from the Council for the CST to front up with the three $1 million donations for construction which Mr Farry very excitedly announced in 2007. None of these donations have materialised nor has Sir Eion Edgar’s $1 million donation he announced in DScene in August 2009. A request for interest on late payment at market rates would also be appreciated.

5. A request for an increase in payment for naming rights from Forsyth Barr to keep it in line with what was initially promoted to Council by the CST’s agent The Marketing Bureau. Council was told naming rights were worth over $10 million but Forsyth Barr is only paying $5 million. Eion Edgar is trying to double count his $1 million ‘donation’ as being part of the $5 million naming rights. Naming rights are a corporate contract not a ‘donation’. As a trustee of a number of Charitable Trusts Sir Eion Edgar knows this. He can’t have it both ways.

6. A review of the Stadium Hire Agreement with the ORFU. David Davies, a former CEO of DVML, said ratepayers would be very angry if they knew what was in it – obviously this agreement is not advantageous to the ratepayer. So much so the ORFU are in a position where they only need to sell 200 tickets to break even.

7. No DVML staff should be working for the ORFU – ORFU is a private business and it is not up to the ratepayer to be subsidising the Union through providing staff support.

8. An assessment of the estimated substantial maintenance costs which are looming as reported in the DVML/DVL annual reports. Part of the projected $188 million (‘not one dollar more’) construction cost was a $6.4 million maintenance fund, which never eventuated, like the $45 million ($55 million including interest) in private funding for the construction lie.

Finally, the inappropriate spending, which occurred in the CST and continued through DVML when CST staff transferred to DVML, needs to be addressed. The community were provided with misleading information throughout the stadium construction but thankfully there is a democratic process in place which allows these matters to be exposed, to prevent this from happening in the future and bring those responsible to account.

[ends]

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Posted by Elizabeth Kerr