Tag Archives: Paul Hudson

Whaleoil on “dodgy ratbag local body politicians” —just like ours at DCC

Whale Oil Beef Hooked logo### whaleoil.co.nz Fri, 31 Oct 2014 at 5:20pm
Why is there no law to rein in dodgy ratbag local body politicians?
By Cameron Slater
Former ARC Councillor Bill Burrill is not the first dodgy ratbag Councillor to trough from abuses of power to his own pecuniary advantage in recent years. A few years back in 2009 Council Watch was calling for a number of Councillors from the Canterbury Regional Council to be prosecuted and sacked from their positions after an investigation by the Auditor General Lyn Provost found that four individuals had broken the law by acting in conflict with their official role. Back then those Canterbury Councillors failed to declare a conflict on interest that [led] to a financial benefit for themselves by participating in discussion and voting on proposals before Council. Under investigation the Auditor General’s office chose not to prosecute stating that whilst the Councillors should have withdrawn as a matter of principle – they had each received and shared legal advice that they could participate. And here in lies the problem. The Auditor General and Office of the Ombudsmen publish clear guidelines for Councillors and council staff but the reality is that the law is erroneously filled with holes that are exploited and there is precious little oversight of Local Government leading to the Auditor General loathing to bother and the Courts uninterested.
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Posted by Elizabeth Kerr

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Filed under Architecture, Business, Carisbrook, Citifleet, Construction, CST, Cycle network, DCC, DCHL, DCTL, Delta, Democracy, Design, DVL, DVML, Economics, Enterprise Dunedin, Geography, Highlanders, Hot air, Media, Name, New Zealand, NZTA, ORFU, Otago Polytechnic, People, Pics, Politics, Project management, Property, Site, Sport, Stadiums, Tourism, Town planning, University of Otago, Urban design

DCC: Forensics for kids

Crime scene - forensic animation 09 - Tim McGarvey [tmba.tv] 11

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”.
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Crime scene - forensic [scottthornbury.wordpress.com] 2b

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.
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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

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)

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Filed under Business, Carisbrook, Citifleet, Construction, CST, Cycle network, DCC, DCHL, DCTL, Delta, Democracy, Design, DVL, DVML, Economics, Events, Media, Name, New Zealand, NZRU, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums, Town planning, Urban design, What stadium

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).

Finance - top secret (yahoofinance at facebook) 1Figures 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.

Finance your next car (goodcars.co.nz)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).

[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.

Finance (nzvf.co.nz)

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….
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● 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.

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)

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Filed under Business, Citifleet, DCC, DCHL, DCTL, Democracy, DVL, DVML, Economics, Events, Highlanders, Name, New Zealand, NZRU, ORFU, People, Politics, Project management, Property, Sport, Stadiums, What stadium

DCC tightens policy + Auditor-general’s facetious comments

The city council’s Whistleblower policy, originally written by Athol Stephens (!!), has recently been updated.

The proposed change came as independent financial consultant Deloitte continued its investigation into an alleged $1 million fraud within the Dunedin City Council’s Citifleet department. (ODT)

### ODT Online Wed, 6 Aug 2014
Council aims to tighten policies
By Chris Morris
The Dunedin City Council is moving to make it easier for whistle-blowers to speak out, but still has “a fair bit of work to do” to tighten other internal policies, senior managers say. The proposed change came as the council’s audit and risk subcommittee, meeting yesterday for just the second time, considered a schedule of 12 internal council policies it was now responsible for overseeing. The policies, ranging from risk management to staff travel and fraud prevention, were designed to promote good governance while protecting the organisation and its staff.
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Universally detested (except by a charming coterie of Wellington’s public servants, all living high off the pig’s back), Lyn Provost represents a fat salary-dollar value only. Fully complicit or was that comfortably incompetent, in not getting MULTIMILLION-DOLLAR RORTS and FRAUD stopped across the local authorities of New Zealand. She and her well-paid ‘academic’ staff ask: “Whatever is Crime?” —OHH! “New Zealand’s public sector boasted $240 billion worth of assets and managing them required continuous attention, she said.” (via ODT) …..What attention, steamed up spectacles??!!

Lyn Provost [liberation.typepad.com] 1 BWBugger off, Lyn [Photo: liberation.typepad.com]

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### ODT Online Wed, 6 Aug 2014
Praise for DCC’s new internal controls
By Chris Morris
The Dunedin City Council’s move to tighten internal controls has been praised by the Office of the Auditor-general, even as the investigation into an alleged $1 million Citifleet fraud continues. The words of encouragement came from Auditor-general Lyn Provost as she addressed a meeting of the council’s new audit and risk subcommittee during a visit to Dunedin yesterday. But, despite the headlines and unanswered questions about why the alleged fraud was not detected, including by auditors, the word “Citifleet” was not uttered yesterday.
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Posted by Elizabeth Kerr

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Filed under Business, Carisbrook, Citifleet, Construction, CST, Cycle network, DCC, DCHL, DCTL, Delta, DVL, DVML, Economics, Geography, Hot air, Media, Museums, Name, New Zealand, NZRU, NZTA, ORFU, People, Pics, Politics, Project management, Property, Queenstown Lakes, SDHB, Site, Sport, Stadiums, Town planning, Urban design, What stadium

DCHL: Aurora upgrade implicates Delta

The upgrade would cost DCC, as Aurora’s annual dividend – passed on to the council and used to offset rates – dropped by $2 million a year, to $7.5 million, from 2015-16.

Delta had shed almost 150 workers and closed its entire civil construction arm since mid-2012.

### ODT Online Sat, 2 Aug 2014
Aurora plans $139.2m upgrade
By Chris Morris
Dunedin City Council-owned lines company Aurora Energy says a planned $139.2 million investment in its network will create about 20 jobs and help ensure the lights stay on as growth picks up in Central Otago. The company’s five-year spending plan would result in upgrades and replacement of key pieces of ageing infrastructure across the network, which supplied 83,000 customers in Dunedin and Central Otago. […] The work would also generate spin-off benefits for another council-owned entity, infrastructure company Delta, which already managed Aurora’s network and shared the same management and directors.
Read more

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Ah well.

Grady Cameron 2a### ODT Online Sat, 2 Aug 2014
Cameron nominated
By Chris Morris
Aurora Energy chief executive Grady Cameron hopes to have put the challenges of the past few years behind him.
Mr Cameron (39), also chief executive of Delta, has been named one of three finalists in the Young Executive of the Year category of the Deloitte Energy Excellence Awards. The winner will be announced in Auckland on August 13.
Read more

Aurora Energy topbanner1b (1)Delta hero-think_4 (2b)

Related Posts and Comments:
5.7.124 DCC’s debt level — who do you believe?
2.6.14 QB 2014 gongs of ill-repute #Hudson COI = MNZM
17.4.14 Aussie wine – NO parallels at DCC/DCHL/DVML/DVL/Delta/ORFU
31.3.14 Audit services to (paying) local bodies #FAIL ● AuditNZ ● OAG…
25.3.14 Delta blues . . . and Easy Rider
20.3.14 Delta: Report from Office of the Auditor-General
14.3.14 Delta: Mayor ignores Cr Vandervis’ official complaint
8.11.13 DCHL, long wait for review (Larsen sighs)
15.7.13 Delta, Carisbrook, Fubar Stadium —Councillors “weak”, or worse
12.7.13 Delta Utility Services Ltd, missing column…
9.7.13 Delta Utility Services Ltd, full investigation needed
12.11.12 Delta purchases | Vandervis OAG complaint accepted
26.10.12 DCHL: New directors for Aurora, Delta, City Forests

For more, enter the terms *aurora*, *delta*, *dchl*, *dcc*, *auditnz* or *oag* in the search box at right.

Posted by Elizabeth Kerr

*Images: Grady Cameron and salary by whatifdunedin; auroraenergy.co.nz – Aurora by Joshua Strang (2006); St Clair by Sean Waller (2009); thinkdelta.co.nz – graphic reworked by whatifdunedin

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Filed under Business, Carisbrook, Construction, DCC, DCHL, DCTL, Delta, Democracy, DVML, Economics, Geography, Highlanders, Hot air, Media, Name, New Zealand, ORFU, People, Pics, Politics, Project management, Property, Site, Sport, Stadiums, Town planning, What stadium

QB 2014 gongs of ill-repute #Hudson COI = MNZM

(via ODT) Mon, 2 Jun 2014
Southern Queen’s Birthday Awards recipients

paul-hudson copyPaul Hudson
Dunedin
Services to business and the community

Paul Hudson (65), of Port Chalmers, said that he was “humbled and honoured” for the recognition of his involved with commerce, local government and the community in Dunedin for 50 years.
He worked for Cadbury Fry Hudson between 1973 and 1996 and, as managing director, led Cadbury’s transition to conducting its worldwide business from centralised locations.
He held elected positions on Port Chalmers and Dunedin City Councils between 1980 and 2013, including deputy mayor on both councils.
He was chairman of Dunedin City Holdings, Citibus-Dunedin Transport Ltd and Citiworks, and a board member of City Forests, Aurora Energy and Delta Utility Services.
He was chairman of Dunedin City Holdings for 18 years, when shareholder funds increased from $100,000 to more than $150 million and distributions to Dunedin City Council totalled more than $280 million.
He was council appointee for the Otago Theatre Trust, Dunedin Public Art Gallery Society and its acquisitions committee and the Dunedin Town Hall Organ Trust.
He was appointed treasurer to the Otago branch of the Save the Children Fund 50 years ago. “This was the beginning of my lifelong interest in serving the community.”
The service to the community included work for Port Chalmers Kindergarten, the Aramoana Trust, Regent Theatre, the Otago Arts Society, the Dunedin Council of Social Services and the Dunedin Community House Trust. “My involvement with the establishment of Community House, my early years in Save the Children Fund and various roles and involvement in local government have been very satisfying,” he said.

[ends]

DECLARATION
“I, Paul Richard Hudson, do solemnly declare I did not squander ratepayers’ money for the chance to receive specific mention in the freshly minted report of the Office of the Auditor-General’s investigation into Delta (2014). Nor at any time did I place or declare my Conflicts of Interest ahead of my ability to be judge and jury at DCHL and other council-owned companies, so to infuriate Warren Larsen (Report, 2012). I did not personally receive ANYTHING by way of payment for termination of lease of restaurant space in the Municipal Chambers. And, I am not at all obsequious, a fence-sitter — or, make that slimy.” … “Honest.”

Related Posts and Comments:
8.11.13 DCHL, long wait for review (Larsen sighs)
23.8.13 New DCHL Chair announced: Graham Crombie
24.7.13 DCC / DCHL shake up !!!
12.7.13 Hudson, DCC (ex DCHL)
7.7.13 DCHL changes lack transparency —where’s the report, Shale?
30.10.12 DCHL ‘run by a bunch of fools’ -agreed
26.10.12 DCHL borrowed $23 million to bail DCC
26.10.12 DCHL: New directors for Aurora, Delta, City Forests
17.10.12 DCC on DCHL, subsidiaries and DCTL
12.10.12 DCHL, subsidiaries and DCTL
30.8.12 Dunedin City Council seen by Fairfax Business Bureau deputy editor Tim Hunter
7.8.12 DCC, DCHL, debt, democracy (and professional rugby)
20.12.11 Delta and the GOBs #DCHL #DCC
28.10.11 DVML, DVL and DCHL annual reports
16.9.11 DCHL and subsidiaries: shuffling, no real clean out?
13.8.11 Ridding DCHL of conflicts of interest, Otago business monopoly ‘by director’, and other ghouls
9.2.11 DCC and DCHL, was there ever any doubt?
7.10.10 The time has come for biffing out
7.7.10 DCC, DCHL, CST, DVML, DVL?
22.10.09 DCHL chief executive replies to critics

Posted by Elizabeth Kerr

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Filed under Business, DCC, DCHL, DCTL, Delta, DVL, DVML, Economics, Hot air, Media, Name, New Zealand, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums, What stadium

Audit services to (paying) local bodies #FAIL ● AuditNZ ● OAG ● LynProvost

Typically, local government pays Audit New Zealand to audit and review annual financial statements. It’s a tame, tick-box sort of exercise. Audit NZ does a remarkably poor job and is certainly not in it to protect the Community from institutional or corporate misuse of public funds, or indeed from what amounts to perversion or defeat of the course of justice.

Audit NZ is paid handsomely to not see failures of tansparency and non-accountability — such that the enlightened Mangawhai Ratepayers and Residents Association (MRRA) has had Audit NZ sacked from providing audit services to Kaipara District Council.

In an opinion piece last week at Otago Daily Times, City ratepayers let down again, Russell Garbutt cleverly and succinctly summarised the depth of the problem with the Office of the Auditor-General (OAG) investigation into Delta Utility Services Ltd. He also noted: “It may seem strange, but if a local government body goes feral, the body which investigates this and the one which provided audit services to that local body are both business units of the Auditor-General.”

Dunedin City Council (DCC) has ‘overseen’ the Auditor-General’s probe into property purchases at Luggate and Jacks Point by Delta Utility Services Ltd, which also involved the council’s holding company (DCHL). A more scandalous, politically slant and irresponsible report from a Government agency it would be difficult to imagine.

(Thank-you, Mayor Dave Cull and the individual Stuart McLaughlan.)

Criminally, the OAG’s Delta report is what passes for ‘honest and comprehensive’ investigation of fraud and corruption in New Zealand… such that the main Delta complainant, Cr Lee Vandervis of Dunedin City, who holds evidence obtained from over 350 emails, was NOT interviewed by the Auditor-General. Nor was his evidence examined.

The fact that for years Audit NZ has refrained from investigating or bringing attention to underhand dealings of the DCC and with respect to DCHL, Delta, Aurora, and Dunedin City Treasury Ltd (DCTL), to identify just some of the ‘group companies’ involved in financial mayhem with public funds, is fully SYMPTOMATIC.

And now we have DCC — and DCHL (again) — in relationship with Dunedin Venues Management Ltd, tied directly to Otago Rugby Football Union (ORFU) and The Highlanders through shared staff and facilities at the Stadium, and the facilities at Logan Park. Meaning that DCC continues to squander millions and millions of dollars of public funds each year, yet Audit NZ is nowhere to be seen under ‘the Roof’. Don’t mention the black hole, Carisbrook.

█ Inquiry into property investments by Delta Utility Services Limited at Luggate and Jacks Point. The Auditor-General’s Overview and Full Report are available at http://www.oag.govt.nz/reports/2014/delta

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WHERE TO FROM HERE ???
In yesterday’s Business section of the Sunday Star-Times came inklings of hope that the tide of fraud and corruption created by local bodies and ‘their mates’ is up for possible scrutiny through a change of legislation. Greater public and professional awareness of fraud by local councils and their companies (as well as private trusts and other means used to launder public monies) is coming to bear.

[Message to ALL: Those of us working quietly away to expose Dunedin City Council and Otago Rugby will never give up in a month of Sundays.]

SST Business 30.3.14 (page D5) Bid to help auditorsSST Business 30.3.14 (page D5)

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NEWS: SFO has got into Mighty River Power and there are ‘reasons’ for non-disclosure of MRP fraud to the NZX…

A consultant says:
SST Business 30.3.14 (page D1) Mighty River Power

The following article goes on to cite other cases, one from last year mentions two men sentenced to prison and home detention following the payment of $849,000 in council funds for road and berm projects that were never completed.

█ Think DELTA, think AURORA, think DCC, think DCHL, think DCTL, think CWP, think CST (CSCT), think DVML…

█ Think of the individuals you know by name who fail to be prudent and conservative with Dunedin Ratepayer and Resident monies, whose actions (deliberate or otherwise) have been fraudulent and corrupt.

█ These entities and the individuals you know by name have been aided and abetted by Audit New Zealand, the Office of the Auditor-General, the Department of Internal Affairs, and indeed the Serious Fraud Office which doesn’t always show a clean pair of hands in assisting investigations by other Government agencies — if ‘supervised by’ mayors, local body politicians, local body employees, Members of Parliament, and Ministers of the Crown.

Welcome to the underbelly of New Zealand local government and the parties it pleases. STEAL from the poor to FATTEN the rich, by any means. Backed by Central Government.

SST Business 30.3.14 (page D1) Fraud at Mighty River Power (1)SST Business 30.3.14 (page D8) Fraud at Mighty River Power (1)SST Business 30.3.14 (pages D1 and D8) [click to enlarge]

*Links to articles not yet available at Stuff.co.nz.

Related Posts and Comments:
30.3.14 Paul Pope on local body annual plans
27.3.14 Jeff Dickie: Letter to the Auditor-General Lyn Provost
25.3.14 Delta blues . . . and Easy Rider
20.3.14 Delta: Report from Office of the Auditor-General
14.3.14 Delta: Mayor ignores Cr Vandervis’ official complaint
22.3.14 DVML, ‘Money for jam…..fig jam’
19.3.14 ORFU: Black-tie dinner, theft or fraud?
17.3.14 ORFU: Black-tie dinner on ratepayers

For more, enter the terms *carisbrook*, *cst*, *cull*, *cycle*, *dcc*, *delta*, *dia*, *draft annual plan*, *dvml*, *farry*, *orfu*, *nzru*, *pokie rort*, *pokies*, and *stadium* in the search box at right.

Posted by Elizabeth Kerr

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