Tag Archives: Mayor Dave Cull

Audit and Review, Deloitte

U N N E R V I N G ● N E W S

“If Deloitte was caught with one such brazenly egregious case, just what else is there that goes unreported, and undiscovered when it comes to corporate “books”, not only in Brazil but also in the US.”

### zerohedge.com Dec 5, 2016 9:43 PM
Auditor Deloitte Fined A Record $8 Million For Massive Fraud
By Tyler Durden
Remember when auditors were, by their very definition, supposed to be the embodiment of credibility, trustworthiness and moral fibre? The Brazilian arm of Big Four auditing giant, Deloitte, forgot these simple prerequisites and as a result the US auditing watchdog fined the firm a record $8 million for what amounts to massive fraud: falsifying audit reports, altering documents and providing false testimony during an investigation that unearthed what it described as its “most serious” finding of misconduct.
The US Public Company Accounting Oversight Board, or PCAOB, also penalised or barred 12 former partners, including a national practice director, and auditors of the Brazil-based Deloitte Touche Tohmatsu Auditores Independentes.
The Deloitte Brazil case is the first time the PCAOB has “charged a member of the Big Four auditing firms with fraud and for failing to co-operate with an investigation” according to the FT [Financial Times]. Worse, unlike banks which resolve similar cases without admitting or denying guilt, in settling, Deloitte Brazil admitted it had violated quality control standards and failed to co-operate with the auditing board’s inspection and subsequent investigation.
“This is the most serious misconduct we’ve uncovered. It’s cover-up after cover-up after cover-up,” Claudius Modesti, director of enforcement at the PCAOB, said. “As an investor you’re expecting that the audit was done properly and sufficiently and that wasn’t the case here.”
Not only was that not the case, but the details read like straight out of a fictional account of third-world crime.
Read more

deloitte-svg

Deloitte Touche Tohmatsu Ltd, commonly referred to as Deloitte, is a UK-incorporated multinational professional services firm with operational headquarters in New York City in the United States.
Deloitte is one of the “Big Four” accounting firms and the largest professional services network in the world by revenue and number of professionals. Deloitte provides audit, tax, consulting, enterprise risk and financial advisory services with more than 244,400 professionals globally. In FY 2016, the company earned a record $36.8 billion USD in revenues. As of 2016, Deloitte is the 6th-largest privately owned organisation in the United States.

The Big Four:
● PricewaterhouseCoopers (PwC), largest accounting firm in terms of revenue.
● Deloitte Touche Tohmatsu (Deloitte)
● Ernst & Young (E&Y)
● Klynveld Peat Marwick Goerdeler (KPMG)

OTAGO RUGBY & RACING ASIDE

Remember the old chestnut…. The connection between TTCF (The Trusts Community Foundation Ltd; formerly, The Trusts Charitable Foundation Inc) —and Deloitte.

“TTCF engaged Deloitte when they desperately needed an ‘independent’ audit so as to put the Department of Internal Affairs (DIA) and Audit NZ off the scent. Unfortunately, even though Deloitte uncovered approximately $40k per month in mis-spent funds, TTCF ensured that was left out of the report because after all they were paying the Deloitte bill.”

Related Post and Comments:
2.6.15 Queen’s Birthday honours to rogues #TTCF #ORFU #PokieRorts
11.3.15 DIA —poor job as gambling regulator
2.2.15 Operation Chestnut: DIA, SFO fluffing round the edges #TTCF #ORFU
11.1.15 Southern complainants: IPCA won’t ensure upfront investigation…
14.12.14 DIA regulates what? Not white collar crime, not with govt looking on!
5.8.14 Gambling Commission shuts down racing’s Bluegrass pokie trust
3.2.14 DIA signed up Intralot amid concerns about bribery and corruption
31.12.13 Martin Legge: Operation Chestnut [DIA’s PR exercise]
30.12.13 DIA insights: Pokie rorts, money-go-rounds, names
11.10.13 New Zealand: Pokie trusts same everywhere #pokierorts
10.10.13 Whistleblowers’ message heard ??! #OtagoRacingClub #pokierorts
1.8.13 Politicians keeping DIA/SFO quiet on ORFU and TTCF #pokierorts
31.3.13 DIA and Office of the Auditor General stuff up bigtime #pokierorts
21.2.13 DIA, SFO investigation #pokierorts
11.11.12 Department of Internal Affairs #pokierorts #coverup #TTCF
25.7.12 Martin Legge backgrounds TTCF (pokie trust) and Portage and Waitakere Licensing Trusts #DIA

█ For more, enter the terms *pokies*, *pokie rorts*, *ttcf*, *orfu* or *dia* in the search box at right.

Posted by Elizabeth Kerr

This post is offered in the public interest.

*Image: Deloitte via Wikimedia Commons

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Filed under Aurora Energy, Business, Central Otago, Citifleet, DCC, DCHL, DCTL, Stadiums

Johnstone on ORC report : ‘The Natural Hazards of South Dunedin’ (July 2016)

The Natural Hazards of South Dunedin – July 2016 [read online]
Otago Regional Council
ISBN: 978-0-908324-35-4
Report writers:
Michael Goldsmith, ORC Natural Hazards Manager
Sharon Hornblow, ORC Natural Hazards Analyst
Reviewed by: Gavin Palmer, ORC Director Engineering, Hazards and Science
External review by: David Barrell, Simon Cox, GNS Science, Dunedin

Received from Neil Johnstone
Sun, 29 Aug 2016 at 8:17 p.m.

Message: Misinformation on the causes of the June 2015 South Dunedin flood have abounded since the event. As if the victimised residents haven’t suffered enough from others’ inactions (before and during the event), they are now being subjected to a hazards discovery process whose vigour appears to be exceeded only by its own recklessness. Following are a commentary of the hazards approach adopted by the Otago Regional Council (ORC), and a summary of my investigations into the flood event that I commenced after the publication of Dunedin City Council’s first flood report back in November 2015.

You can download Neil Johnstone’s report or read it below (formatted slightly differently to suit the WordPress template).

█ Download: A REVIEW OF ORC REPORT THE NATURAL HAZARDS OF SOUTH DUNEDIN (1) (PDF, 587 KB)

AN APPRAISAL OF RECENT REPORTING OF SOUTH DUNEDIN HAZARDS

N.P JOHNSTONE, BEng (Civil), MIPENZ

1. Introduction

There is some irony that DCC and ORC should be planning “drop in” sessions for residents in respect of South Dunedin hazard issues during September 2016, some 15 months after the major flood. The prime cause of flooding in June 2015 was DCC’s failure to maintain its infrastructure (not just mudtanks), and its failure to operate its pump stations to their intended capacities. The subsequent spread of misconceptions (i.e. groundwater levels, rainfall significance etc) surrounding the flood causes was at least partly due to inaccurate ORC analyses and reporting.

Repetitive and new doubtful information emanating from ORC via its latest report has been noted. Presentations and an over-simplistic video production have been observed. A footnote covering these observations is included at the end of this appraisal.

Long-delayed DCC reports on causes of the South Dunedin flooding have already been strongly criticised by the author. Specifically discredited are misrepresentations of sea level, groundwater and rainfall ranking. Accepted now by DCC as factors (somewhat grudgingly, and depending on the audience) are mudtank blockage and Portobello Road pump station failures (plural); still to be fully acknowledged are the failures at Musselburgh Pumping Station.

Attention is now turned to significant parts of hazard reports produced by the Otago Regional Council and utilised by DCC.

2. Coastal Otago Flood Event 3 June 2015 (ORC, published October 2015)

This report deals with a wider area than South Dunedin. It is apparent that ORC staff never visited the flooding areas of South Dunedin on 3 June, but took advantage of fine weather to take some water level readings the following day. The opportunity for useful progressive surface water level recording was thus lost. Levels were collected at some 150 points on 4 June. ORC’s main conclusion was that “localised variations in topography were probably the main driver of flood depth”. Or, put another way, water depth was deepest where the ground was lowest. This seems hardly surprising, and even trivial. No attempt was made to explain the photographic images presented of extensive ponding remaining well after the rains had ceased. The phenomena of blocked mudtanks and unutilised pumping capacity went seemingly unnoticed.

The report does usefully reference ORC’s four borehole recorders of groundwater, but makes the somewhat misleading assessment that groundwater levels were “elevated” prior to the rainstorm. This misinformation was seized upon by agencies such as DCC and the Office of the Parliamentary Commissioner for the Environment to highlight climate change impacts.

Having obtained the actual groundwater level data from ORC via the LGOIMA process, the author was able to reveal this “groundwater fallacy” in reviews from February 2016, but it was not until the publication of NZ Listener’s article (June 11-17, 2016) entitled ‘FLOOD FIASCO’ that ORC admitted that pre-flood groundwater levels were in fact “just a little bit above average”. ORC now seems intent on resurrecting this fallacy.

The ORC report fails to address the real and key issues of pumping station failures (Portobello Road and Musselburgh), or comparisons with much lesser flood impacts in the larger rainfall event of March 8/9 1968.

The report states that the 2015 24-hour rainfall was the largest since 1923. This was patently incorrect, but again was utilised by DCC to divert blame from their role in the disaster.

3. The Natural Hazards of South Dunedin (ORC, published July 2016)

The report states unambiguously in its Opening Summary that the major flooding of June 2015 was “a result of heavy rainfall, surface runoff, and a corresponding rise in groundwater”. By now, most people are aware that the causes of the flooding’s disastrous impact were failure to optimally operate pumping stations, failure to clear mudtanks, and failure to deploy staff to key areas during the event. Again, none of these factors is addressed in ORC’s report.

The report presents a table on its second page entitled “Factors Which Can Influence Flood Hazard”. Examples of exaggerated negativity include:

1. Heavy Rainfall:
– Many recorded instances of rainfall leading to surface flooding.
– Heavy rainfall events have occurred frequently over the last decade.

Comment: These conclusions do not appear to be supported by the report’s text, and are vague, factually challengeable and alarmist. Prior to 2015, no major flooding had occurred in South Dunedin since 1968, and even that was minor by comparison.

2. Sea Level:
– Groundwater level fluctuates (by up to 0.5m near the coast) on a twice-daily cycle in response to normal ocean tides.

Comment: All of South Dunedin is near the coast; most of the area does not experience such large fluctuations. This should have been made clear by the inclusion of groundwater data from all 4 ORC sites across the plain, not just from Kennedy Street.

3. Seismic:
– Large earthquakes could result in increased flood hazard on the South Dunedin plain, due to liquefaction-related land subsidence or direct, sudden, changes in land elevation relative to sea level.

Comment: All areas of NZ have some susceptibility to earthquake damage. Dunedin is amongst the areas at lowest risk; no incidences of even minor liquefaction have ever been reported in South Dunedin, and little or no clearly liquefiable materials have been identified (Refer GNS, 2014*). Continue reading

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Cr Whiley clarifies at ODT #letters

ODT LOCAL BODY ELECTIONS SOAPBOX

[click to enlarge]

ODT 18.8.16 (page 10)

2016-08-18 22.15.53

ODT 27.7.16 (page 12)

ODT 27.7.16 Letters to editor Oaten Whiley p12 (1)

Related Post and Comments:
28.7.16 Truthful Letters : Stadium + DCC #toobadaboutmayoralreply

Posted by Elizabeth Kerr

Election Year. This post is offered in the public interest.

*Images: whatifdunedin

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ODT: Vandervis v Cull

Dave Cull merge v1

‘Mr Cull maintained he was correct to call Cr Vandervis a liar during a furious bust-up at a council meeting last December, telling the Otago Daily Times yesterday “a lie is a lie”.’

### ODT Online Sat, 7 May 2016
Threat to ‘double damages’
By Vaughan Elder
Councillor Lee Vandervis has threatened to “double the damages” from defamation action after Dunedin Mayor Dave Cull stood by calling him a liar. […] Cr Vandervis launched the defamation action this week, saying Mr Cull calling him a liar during a discussion on a new council procurement policy was incorrect and defamed him. A letter sent to Mr Cull by Cr Vandervis’ legal counsel, Alistair Paterson, said he would be willing to forgo defamation action if Mr Cull paid his legal costs and made a public apology in a full council meeting filmed by Dunedin Television and in the presence of Allied Press [Otago Daily Times] reporters.
Read more

Channel 39 Published on Dec [14]*, 2015
Councillor asked to leave meeting
Councillor Lee Vandervis was instructed by Mayor Dave Cull to leave a Dunedin City Council meeting today. The request came after Cr Vandervis alleged that tender contracts could not be secured unless a relationship was developed with staff. The Mayor rejected his claims, saying he had no proof. Cr Vandervis then proceeded to continue discussing the matter and was asked to leave.
Note: Incorrect date of meeting given at YouTube entry.

Dunedin City Council Published on Dec 15, 2015
[full meeting video – relevant segment near end from 2:07:19]

Unconfirmed Minutes of Meeting (14.12.15)
No reason given for minutes as yet unconfirmed by Council.

Related Posts and Commments:
14.3.16 Cr Vandervis co-operates with investigators #mediaslant
20.12.15 More emails —DCC aftermath of full council meeting 14.12.15
19.12.15 Member of the public lays Conduct complaint against Mayor Cull
15.12.15 Santa Cull’s idea of standing orders 14.12.15 #xmasface

█ For more, enter the term *vandervis* in the search box at right.

Posted by Elizabeth Kerr

Election Year —this post is offered in the public interest.

*Image: dunedintv.co.nz – archivemash by whatifdunedin

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Filed under Business, DCC, Democracy, Dunedin, Economics, Events, Finance, Media, Name, New Zealand, Ombudsman, People, Politics, Project management, Property, Public interest, Site, Travesty

South Dunedin Action Group: Notes of meeting with DCC (3 May 2016)

Received.
Friday, 6 May 2016 6:02 p.m.

From: Clare Curran [Dunedin South MP]
Subject: Notes from the Meeting with DCC on 3 May
Date: Fri, 6 May 2016 00:31:05 +0000
To:

Dear everyone
Further to my last email here is the notes taken by office from the meeting with the Mayor and senior Council management on 3 May.
This is to keep you informed and for transparency purposes.

A new meeting date will be set up soon and I will keep you all informed

Kind regards

Clare Curran

[begins]

Notes from meeting 3 May 2016
South Dunedin Action Group (SDAG) and mayor + senior management

Mayor Cull
– acknowledged that there was collective concern, that they were pleased to meet with the group and that the meeting provided the best place to provide clarifications
– Acknowledged that the process had been lengthy and frustrating, and “sloppy”
– Council was now very sceptical about evidence relating to the flood and had been let down. He added that they would not make any changes to anything without evidence.
– If the event occurred again even with the proper maintenance there would have been severe flooding
– Determined to make the system we have work the best that it can
– Agreed need another mechanism other than the ODT to communicate with the community
– Will consider the discussion and come back with a proposal for the next meeting with a smaller group

Laura McElhone. Group Manager Water and Waste
– All mudtanks had been cleaned in South Dunedin (marked with green spray)
– Screen has been redesigned at pumping station, work about to go to tender, installation expected July/August
– Screen currently cleaned weekly by contract with photograph for proof
– Proposed screen modifications would see a 4 part screen to allow for safer and easier cleaning – could not confirm bar spacing
– Approx. 100 manholes had been lifted (Oct/Nov 2015) to identify any siltation – none identified as a problem – map can be provided of manholes checked – this exercise will be repeated in Oct/Nov 2016
– Confirmed that with the work carried out or in progress expected reduction in level of water would be about 200mm – however difficult to predict because too many variable to undertake modelling
– On issue of foul sewage infiltration confirmed that work being undertaken in Kaikorai Valley was to reduce the pressure on the system before it came through to Caversham
– On the issue of diverting foul sewage to Green Island treatment works stated that it was only able to handle a certain amount as it had been set up for a different type of sewage
– With regard to pumping out to sea, confirmed that they now know who to contact at the ORC and will maintain valves to enable this to happen if necessary
– Advised Musselburgh pumping capacity cannot run at maximum [this is disputed by Darrel]
– Forecast received on 2 June was for 1/3 less rain – only after midday on 3 June did they receive prediction on the size of the event
– Definitely had contractors and staff monitoring and out in South Dunedin, but did not have enough people to cover the scale of event
– Door-knocking by DCC did not record the number of flooded houses [DCC has not been back to check]
– 1968 flood had two peaks so had time to recover [disputed by Darrel]
– Too many variables to accurately measure topographical data
– Understand need to reassure and quantify but have to be careful not to give false impression
– Advised that 4/5 engineers employed in planning and 6/7 at the delivery end – acknowledged the identified lack of a storm water specialist – currently under recruitment

Ruth Stokes. Infrastructure and Networks General Manager
– Contractors have been asked to verify status of periphery areas
– Need to build resilience in the community – have recognised need to contact secondary schools and community groups and extend beyond the ‘What’s the plan Stan” initiative

Sue Bidrose. Chief Executive
– Unable to provide a figure on the number of roads closed by DCC as the water washed the cones away.
– Civil defence, Fire and Police all advised DCC that only 20-30 houses had been flooded – suggested that volunteers sandbagging were not part of the information loop and therefore message did not get through to emergency services

Kate Wilson. Councillor
– Have been advocating for a rain radar for a number of years on the Taieri

David B-P. Councillor
– Not just South Dunedin affected but other areas also, we need answers to give the community reassurance that the system is operating

[ends]

█ For more enter the term *flood* in the search box at right.

Posted by Elizabeth Kerr

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Filed under Business, DCC, Democracy, Dunedin, Economics, Housing, Infrastructure, Name, New Zealand, People, Politics, Project management, Property, Proposed 2GP, Public interest, Resource management, Site, South Dunedin

DCC spending + Cycleway redesigns #OutOfControl

ODT 8.2.16 (page 8)

ODT 8.2.16 Letter to editor Dickie p8 (1)

ODT 6.2.16 (page 34)

ODT 6.2.16 Letters to editor Vandervis Smith p34

Received from Lee Vandervis
Mon, 8 Feb 2016 at 10:11 a.m.

FYI The version with attached email that I sent to ODT.

—— Forwarded Message
From: Lee Vandervis
To: EditorODT, Nicholas George S Smith, Julian Smith
Conversation: Councillors kept in the budget dark
Subject: Councillors kept in the budget dark

Dear Editor,

Last year in my letter to the Editor I complained that DCC staff had wasted $500,000 on two incompetent unsafe attempts to turn the 4 lanes of Portobello Road [from the Andy Bay BP to the foreshore] into a massive cycle-lane plus an unworkable 2 lane road. I argued that a $200 spend on signage making the eastern footpath into the desired cycleway would have catered for the few cyclists that use this short stretch. In our Annual Plan opportunity to discuss big budgets last week when I asked our new head of Transportation how much the third attempt to create a Portobello Road cycle lane was costing, budget debate was effectively shut down with the answer that staff had no idea. This was confirmed in an email to me on 2/2/16 which said “Staff do not yet have a formal cost estimate for the works associated with the redesign.” yet the following day the ODT reported “a fresh redesign is expected to cost more than $500,000”, new design costs “about $70,000” with Mayor Cull saying “the community should be confident in its ability to roll out cycleways in the city”!!! I say we should stop throwing good money after bad, stop the $8 million proposed one-way separated cycleway experiment, and stop the obsession with further cycleway spending [which was justified assuming the crock of ever-increasing and unaffordable fossil-fuel prices] until we have clear evidence of the cost/benefit of such expensive projects.

Kind regards,
Cr. Lee Vandervis.

█ 2/2/16 email evidence:

From: Ian McCabe [DCC]
Date: Tue, 2 Feb 2016 01:21:49 +0000
To: Lee Vandervis
Cc: Sandy Graham [DCC]
Subject: RE: Portobello Road (Portsmouth Drive to Timaru Street) Redesign

Hi Lee

My apologies for the delay in coming back to you on this.

Staff do not yet have a formal cost estimate for the works associated with the redesign. The cost will become apparent once staff have evaluated tenders for the construction.

Staff are committed to tendering the works in order to get the best price possible.

Costs associated with the redesign will be met from the existing Strategic Cycle Network budget.

Regards
Ian

Ian McCabe
Group Manager Transport
Dunedin City Council

Related Post and Comments:
22.10.15 Bloody DCC —superlative cost blowout #cycleways #SUCKS

█ For more, enter the term *cycle* in the search box at right.

Posted by Elizabeth Kerr

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Douglas Field counters DCC climate change bunkum

Received.
Mon, 8 Feb 2016 at 5:19 pm (GMT+12:00)

Douglas Field Published on Feb 7, 2016
Dr John Christy testimony US House Committee 2 Feb 2016
Comparison between local politicians’ opinions on climate and Professor John Christy’s testimony at US senate committee hearing.

The full text of Christy’s testimony to the Senate Science committee. It really reinforces the little clip above and is so clear and easy to comprehend.

[begins] I am John R. Christy, Distinguished Professor of Atmospheric Science, Alabama’s State Climatologist and Director of the Earth System Science Center at The University of Alabama in Huntsville. I have served as Lead Author, Contributing Author and Reviewer of United Nations IPCC assessments, have been awarded NASA’s Medal for Exceptional Scientific Achievement, and in 2002 was elected a Fellow of the American Meteorological Society.
It is a privilege for me to offer my analysis of the current situation regarding (1) the temperature datasets used to study climate, (2) our basic understanding of climate change and (3) the effect that regulations, such as the Paris agreement, might have on climate. I have also attached an extract from my Senate Testimony last December in which I address (1) the popular notion that extreme climate events are increasing due to humaninduced climate change (they are not), and (2) the unfortunate direction research in this area has taken.
My research area might be best described as building datasets from scratch to advance our understanding of what the climate is doing and why. Cont/

█ Download: https://science.house.gov/sites/republicans.science.house.gov/files/documents/HHRG-114-SY-WState-JChristy-20160202.pdf

Posted by Elizabeth Kerr

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