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 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

Queen’s Birthday honours to rogues #TTCF #ORFU #PokieRorts

### Stuff.co.nz
Last updated 15:04, June 1 2015
Weekes triplets grandfather awarded Queen’s Service Medal for service to community
A Wellington community stalwart, who lost three grandchildren in the Qatar mall fire, has been recognised in the Queen’s Birthday Honours. Rod Turner received the Queen’s Service Medal for service to the community, including a long career in the Army and dozens of volunteer organisations. The honour recognised “his leadership and selfless dedication to the community”. Turner spent 22 year in the military, rising to the rank of Lieutenant Colonel, before retiring and spending nine years as chief executive of the Children’s Health Camps.
Read more

—

The piece of skirt responsible for funding irregularities* around the Centre of Excellence for Amateur Sport [for Professional RUGBY] has claimed a QB Honour. Paperwork showing this fraud is held independently.

ODT: Queen’s Birthday Honours 2015
Members MNZM
Kereyn Maree Smith, Auckland, services to sports governance.

—

More at this ODT Link

—

● The Trusts Charitable Foundation (TTCF Inc) ● The Trusts Community Foundation Ltd (TTCF Ltd) ● Otago Rugby Football Union (ORFU) ● Professional Rugby ● Centre of Excellence for Amateur Sport ● Harness Racing ● Department of Internal Affairs (DIA) ● Gambling Commission ● Pokies ● Rorts ● Organised Crime ● Serious Fraud ● Political Interference

RECEIVED COMMENTARY
Tue, 2 Jun 2015 at 7:45 p.m.

Awards all round for those associated with gambling, pokies, serious audit failings and the negative findings of the NZ Gambling Commission.

Sad as the circumstances are for Ron Turner, he was a TTCF Trustee who approved grants to the Centre of Excellence for Amateur Sport in the hope of gaining ORFU’s pokie business after the ORFU had purchased the South Auckland Jokers Bars for about $3 million and so were desperate to align themselves with a pokie trust that would agree to illegally approve all the profits from those bars back to the interests of the ORFU.

The DIA investigated these arrangements and deemed that ORFU had an interest/ownership in the bars and therefore could not receive any proceeds from those bars. Facing potential financial disaster it would appear Kereyn Smith and other cronies associated with the ORFU agreed to front a new trust to counter DIA action.

Ex employees of ORFU, have confirmed that their contracts and pay were suddenly transferred over from the ORFU to the Centre of Excellence. The COE trustees then submitted grant applications to TTCF applying for salaries and costs that had previously been with the ORFU and avoided DIA scrutiny.

According to sources and documents, the very first grant of $500k from TTCF was needed and used for ORFU to meet its financial obligations to complete the purchase of the Jokers Bars and Ms Smith signature appears as sign off for the accountability.

There are serious anomalies which required proper investigation but as we know neither the DIA, the Police, the SFO or this Government are interested in proper investigations. Far easier to hold an award ceremony!!

—

Another TTCF trustee, Warren Flaunty, NZ’s most elected man, was convicted of careless driving after causing the death of a young motor cyclist in West Auckland in 2010.

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

—

Posted by Elizabeth Kerr

DIA —poor job as gambling regulator

LAUGHABLE
The costs of regulation outweigh revenue from fees by $9 million a year.

### NZ Herald Online 5:00 AM Monday Mar 9, 2015
Breaches by pokie operators spark fee increase
By Nicholas Jones
Half of all inspections of pubs and clubs with pokie machines identify breaches or non-compliance with the law. Fees paid by pokie operators are to be increased as levels of fraud and other breaches challenge the Government’s ability to police the sector. Internal Affairs Minister Peter Dunne is overseeing consultation on proposals that will increase fees paid by clubs and pubs with gambling machines by 54 per cent.

OPERATION CHESTNUT NEAR COMPLETION
DIA, SFO and the Organised Financial Crime Agency NZ scrutinised $30 million in gaming grants made by trusts including Bluegrass. Bluegrass’ licence was cancelled after the DIA ruled its start-up funding was sourced from three racing clubs, rather than from South Canterbury Finance, as claimed.

The past three years have seen an increase in complex investigations into fraud and illegal activity at clubs and societies with pokies. That, and the declining number of pokie machines, has put severe financial pressure on the Department of Internal Affairs (DIA). Gambling enforcement is funded through fees paid by gambling operators.
Read more

—

Related Posts and Coomments:
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* or *pokie rorts* in the search box at right.

—

Posted by Elizabeth Kerr

Operation Chestnut: DIA, SFO fluffing round the edges #TTCF #ORFU

“Operation Chestnut has been a significant investigation in the Class 4 sector and we’ve welcomed the opportunity to work in partnership with the SFO and OFCANZ.” –Maarten Quivooy, DIA

### NZ Herald Online 12:00 PM Monday Feb 2, 2015
Four in court charged with $30m pokie fraud
By Hamish Fletcher – Business reporter
A former chairman of Harness Racing New Zealand and three other people have been charged over an alleged $30 million pokie fraud. It is the biggest criminal case ever of its kind involving pokies outside of a casino. Four defendants have appeared in the Wellington District Court today over the alleged manipulation of grants which come from pokie machines, a Department of Internal Affairs spokeswoman said this morning. The defendants, charged by the Serious Fraud Office with obtaining by deception, are former HRNZ chairman Patrick O’Brien, his son Michael O’Brien, Paul Anthony Max and another person with interim name suppression. The alleged offending was uncovered during an investigation called Operation Chestnut which involved the DIA, SFO and the Organised and Financial Crime Agency of New Zealand.
Read more

*The name of the fourth defendant is known to What if? -Eds.

—

Related Posts and Comments:
22.1.15 ORFU chairman quits —no thanks to DCC for all its help *sniff
31.12.13 Martin Legge: Operation Chestnut [DIA’s PR exercise]

█ For more, enter the terms *operation chestnut*, *pokies*, *legge*, *whistleblower*, *rorts*, *dia*, *sfo*, *ttcf*, *gambling*, *orfu*, *rugby*, *jokers* and *racing* in the search box at right.

—

Posted by Elizabeth Kerr

Sport Otago’s Brimble and ORFU’s Kinley never give up —ugly paperwork exists boys !!

● The Trusts Charitable Foundation (TTCF Inc) ● The Trusts Community Foundation Ltd (TTCF Ltd) ● Otago Rugby Football Union (ORFU) ● Professional Rugby ● Centre of Excellence for Amateur Sport ● Harness Racing ● Department of Internal Affairs (DIA) ● Gambling Commission ● Pokies ● Rorts ● Organised Crime ● Serious Fraud ● Political Interference

### ODT Online Thu, 27 Nov 2014
Sport
Gambling: Gaming funds sport: Is the trade-off worth it?
By Adrian Seconi
Are sporting bodies turning a blind eye to problem gambling because of the estimated $120 million-$130 million gaming trusts provide each year? Reporter Adrian Seconi asks prominent administrators John Brimble and Richard Kinley their thoughts. It is an ethical minefield, but without the funding the gambling industry provides, many sporting organisations would collapse and sport would be out of reach for some families. Both Sport Otago chief executive John Brimble and Otago Rugby Football Union general manager Richard Kinley want to be very clear about that point.
Read more

█ TOMORROW: The TAB has its say.

****

“It’s going to be fun. The NZ Racing Board is a $2 billion business that plays a vital role in the New Zealand economy by supporting the racing and sports industries. It is also the owner and operator of the TAB which is an exciting commercial enterprise and iconic New Zealand brand.”–John Allen.

### NZ Herald Online 3:57 PM Wednesday Nov 26, 2014
Mfat chief executive John Allen moves to NZ Racing Board
–Herald Online / BusinessDesk
Foreign Affairs and Trade chief executive John Allen is resigning to take up the role of head of the NZ Racing Board. Mr Allen began as the Mfat head in in July 2009 and headed a controversial restructuring of the government department which was opposed by many staff and saw 49 ambassadors and heads of foreign missions co-sign a letter criticising the plan. […] Mr Allen’s departure was flagged by political newsletter Trans-Tasman, which said he planned to announce next Monday that he is leaving for a top post in the private sector.
This afternoon, the NZ Racing Board confirmed it had appointed Mr Allen as its new CEO.
Read more

For more, enter the terms *gambling*, *pokies*, *dia*, *rugby*, *racing* *rorts* *whistleblower*, *fraud*, *white collar crime* in the search box at right.

—

Posted by Elizabeth Kerr

Privatising Highlanders involves DCC (ratepayer funds?)

Jeremy Curragh had been appointed by the NZRU to help co-ordinate the sale and would work with Highlanders and NZRU staff to go through the whole process.

### ODT Online Wed, 9 Apr 2014
Rugby: Curragh involved in privatising Highlanders
By Steve Hepburn
The man deeply involved in saving Otago rugby from liquidation a couple of years ago is now helping privatise the Highlanders. The wheels are slowly turning on the Highlanders’ move to private ownership although, as with the other four New Zealand franchises, the New Zealand Rugby Union will retain majority ownership. A local committee, headed by Otago Rugby Football Union chairman Doug Harvie, had also been formed and would provide local input into the process. Included on this committee were representatives from other interested parties such as other provincial unions and local authorities.
Read more

█ Remember Jeremy Curragh’s role in ORFU’s misuse of funds and accounting for the union’s black-tie dinner held at the Stadium ???

—

Related Posts and Comments:
10.2.14 University of Otago major sponsor for Highlanders
11.12.13 Highlanders “Buy Us” entertainment: Obnoxious, noxious PROFESSIONAL RUGBY —stay away DCC !!!
27.5.12 Again: Oh, Mr Curragh… [emails]
26.5.12 DIA media release
23.5.12 Latest: Oh, Mr Curragh… [emails]
20.5.12 Update: Oh, Mr Curragh… [emails]
18.5.12 Oh, Mr Curragh… [emails]
11.5.12 Dunedin shootout: mafia bosses
2.5.12 Ratepayers pay for ORFU black tie dinner at stadium
22.4.12 DIA, OAG, TTCF and Otago Rugby swim below the line
29.3.12 Dunedin City Council company sponsors Highlanders
23.5.12 Latest: Oh, Mr Curragh… [emails]
20.5.12 Update: Oh, Mr Curragh… [emails]
18.5.12 Oh, Mr Curragh… [emails]
2.5.12 Ratepayers pay for ORFU black tie dinner at stadium
22.4.12 DIA, OAG, TTCF and Otago Rugby swim below the line
23.3.12 ORFU position
9.3.12 DCC considers writing off ORFU’s $400,000 debt
14.12.11 Davies “in the middle of a conversation” – how to fudge DVML, DCC, ORFU and Highlanders
22.12.09 DCC appoints Highlanders’ Board representative [Kereyn Smith]
16.10.09 Highlanders news [Stuart McLauchlan]
1.7.09 NZRU swings governance of Highlanders
28.5.09 Highlanders board less Farry

—

Posted by Elizabeth Kerr

ORFU: Black-tie dinner, theft or fraud?

[screenshot]

• Dave Goosselink — Dunedin face (and voice) for TV3 News & Sports
• Samuel Gilchrist — social media handler for The Highlanders @Highlanders

Retweets by @whatifdunedin and @SearleJamie
• Jamie Searle — Southland Times racing reporter

—

Correspondence received.
Wednesday, 19 March 2014 10:58 a.m.

From: Bev Butler
To: Steve Tew [NZRU]; Doug Harvie [ORFU]
CC: Murray Kirkness [ODT]; Steve Hepburn [ODT]; Rebecca Fox [ODT]; Ian Telfer [RNZ]
Subject: Black-tie dinner bill to be paid?
Date: Wed, 19 Mar 2014 10:56:35 +1300

Wednesday 19th March 2014

Dear Steve

The following was posted on a local blogsite “What If Dunedin”.

“The conscience of the ORFU is totally absent. The normal procedure for staging an event such as the black-tie dinner is to budget all costs, set the entrance fees to cover those costs and establish a profit level. That is both normal and straightforward – some I’m sure, would say honest, business practice..

The way the ORFU operated was to set the costs, pay out the organiser – who just happened to be the wife of Laurie Mains – ignore the costs and bank the difference. Can anyone tell me that if this scenario happened with anyone else other than the dear old rugby-mad idiots on the Council involved, would this be tolerated? Not on your nelly. Can anyone tell me why this isn’t either theft or fraud?” *

What especially interests me about this post is the question posed as to whether theft or fraud is involved.
It feels like it to me but I’m not sure whether it would hold up in a court of law.
Maybe it could…maybe it couldn’t.
My limited understanding of the Crimes Act is that the hardest part to prove is intent.
In the case of the black-tie dinner, did the ORFU have any intent on paying the bill?
In my opinion, if they did they would have paid it when they received the money from the guests – because obviously it was the intent of the guests for their money to be paid for their evening out.
What do you think, Steve? I’d appreciate your view on this.

I noticed on twitter, media and rugby officials tweeting about this issue.
Strange how the Highlanders’ social media official, Samuel Gilchrist, refers to me as a ‘warmonger’ because I am asking for some honesty from the ORFU. The problem down here is that there is no decent leadership in rugby and hasn’t been for years.
We have Roger Clark as the current CEO of The Highlanders – he was the CEO of Southland Rugby Union at the time when they
they owed over $100,000 in booze. I fear that nothing much has changed.

I had hoped that with the new ORFU board that some leadership would be shown over the black-tie dinner scandal but, to date, that hasn’t happened. Change needs to come from the top so that people like Samuel Gilchrist understands that it is not okay to run off without paying your bills. He doesn’t seem to be able to figure this out for himself. I guess when things have been bad down here for so long those who can’t think for themselves look to the leaders for guidance which is lacking.

That is why I have turned to you, Steve, to finally show some leadership and right this wrong.

I hope I don’t have to continue to prod any deeper.

Yours sincerely
Bev Butler

Previous letter to Steve Tew deleted, read it here

[ends]

*Link to source

—

Related Posts and Comments:
17.3.14 ORFU: Black-tie dinner on ratepayers
14.3.14 ORFU flush to pay creditors

For more, enter the terms *orfu*, *dinner*, *jeremy curragh*, *bailout*, *martin legge*, *dia*, *pokies*, *jokers*, *ttcf*, or *pokie rorts* in the search box at left.

—

Posted by Elizabeth Kerr

ORFU: Black-tie dinner on ratepayers

Correspondence received.
Monday, 17 March 2014 9:28 a.m.

From: Bev Butler
To: Steve Tew [NZRU]; Doug Harvie [ORFU]
CC: Steve Hepburn [ODT]; Rebecca Fox [ODT]; Murray Kirkness [ODT]; Ian Telfer [RNZ]
Subject: FW: ORFU board responsible for paying the black tie dinner bill
Date: Mon, 17 Mar 2014 09:26:55 +1300

Monday 17th March 2014

Dear Steve

It is a while since we corresponded and Doug [Harvie] has indicated he doesn’t intend to respond any further (always best to keep the lines of communication open when in a leadership role) so thought I would let you in on the current situation of the ORFU.
Please read from the bottom up and then read the rest of this email.

Either Doug doesn’t fully appreciate the situation or is just hoping the issue will go away.
Let me explain the situation from a different perspective so that both you and Doug may have a deeper understanding of the full implications.

Let’s say that you and Doug decide to borrow a considerable amount of money to build a new restaurant with a state of the art glass roof. Absolutely stunning – is going to be just wonderful for me to conduct my business dealings there. Just days after your restaurant opens I come along and make a booking for 350 guests. Unfortunately, my business hasn’t been going that well so am using your new restaurant to have a fund-raising dinner. I employ one of my close friends, Elly-May, to organise the dinner for my business. She sells tickets for this dinner for $250 each. Now 350 guests at $250 each is $87,500. You charge me about $75 per guest – a total of about $26,000. Now after the event I pay my close friend Elly-May about $10,000 and have a few other expenses which leave me with a ‘profit’ of $52,000. BUT instead of paying you the $26,000 I put the lot in my ‘pot’ and cry that I’m poor. You and Doug were such wonderful hosts, our guests were well fed, plenty of booze and cleaned up after us. Thanks for that.

One of your colleagues gets a bit shirty and accuses me of being dishonest. How dare him [sic]. I just wanted to spend the money on something else – I had other bills to pay even though my 350 guests were under the impression they were paying for the night out I just wanted to use the money for something else. Done it before – ask Jeremy Curragh. Well. I have some very important friends, you know. So I get them to sue him for defamation. Felt good when your colleague had to apologise.

Do you really think I have acted honestly and with integrity?

Now do you understand why the Dunedin ratepayers are still angry about this?
I am still being approached by people (as recently as yesterday – some of them rugby coaches) upset by the ORFU’s actions.

I suggest you two have a chat and do the right thing and pay this bill now that the ORFU have announced a ‘profit’ for the year. Someone needs to show some leadership over this. The Dunedin community deserve better. Personally I believe you have a moral obligation to pay this bill and set this wrong right. It is but a small gesture for the many indiscretions perpetrated by the ORFU on the Dunedin community.
Some people in the Dunedin community think that the ORFU are rotten to the core but I don’t actually agree with them. I am an optimist at heart and believe that there is human decency in everyone. In the ORFU’s case it just requires a bit of deeper prodding.

The ORFU have a moral obligation to show some human decency and pay this bill. It is a matter of principle. I will not be silenced on this. You have my word on that.

Yours sincerely
Bev Butler

—————————–

From: Bev Butler
To: Doug Harvie [ORFU]
CC: Steve Hepburn [ODT]
Subject: RE: ORFU board responsible for paying the black tie dinner bill
Date: Fri, 14 Mar 2014 09:43:19 +1300

Dear Doug

Saying that “ALL creditors have been satisfied in full, in one way or another” is not the same as saying that all creditors have been PAID in full.
I know it is uncomfortable for you to be reminded of this but it still does not excuse the ORFU from doing the decent thing and paying their obscene black-tie dinner given they already had the money but decided to pocket it instead.
How about showing some decency or goodwill towards those that bailed you out of your financial mess now that you are flush with $406,859 profit?

Yours sincerely
Bev Butler

—————————–

From: Doug Harvie [ORFU]
To: Bev Butler
CC: Steve Hepburn [ODT]
Subject: RE: ORFU board responsible for paying the black tie dinner bill
Date: Thu, 13 Mar 2014 20:16:32 +0000 [sic]

You have your facts wrong Bev – ALL creditors of ORFU have been satisfied in full, in one way or another.

I will not be responding to any further correspondence on this matter.

D J Harvie

Partner
Harvie Green Wyatt

(P O Box 5740, Dunedin 9016, New Zealand. Phone +64 3 4775005 or +64 21 2234169. Fax +64 3 4775447

—————————–

From: Bev Butler
Sent: Friday, 14 March 2014 7:32 a.m.
To: Doug Harvie [ORFU]
Cc: Steve Hepburn [ODT]
Subject: ORFU board responsible for paying the black tie dinner bill

Friday 14th March 2014

Dear Doug

In today’s ODT the ORFU have reported a profit of $406,859 for the 2013 financial year and a profit of $134,656 for the 2012 financial year. Part of this so called profit is just pocketing of monies from unpaid bills.

As you are fully aware, the ORFU ran up a DVML bill of $25,352 for their black tie fund raiser at the stadium on 5th August 2011. This was for food, booze, soft drinks and cleaning.

Not only did the ORFU run off without paying this bill but the ORFU paid no venue hire for this brand new venue. Then to top it off the ORFU pocketed $52,000 from this fundraising event into their ‘pot’ which then is reported as profit for the 2012 financial year.

The fact that the ORFU then pressurised the Council to ‘write it off’ does not excuse the ORFU from the moral obligation to pay this bill.

I was quoted in the ODT as saying this was ‘obscene’. It is like booking a large restaurant, gorging yourselves on all their food and drink and hospitality then doing a runner.

It is ‘obscene’ and I expect this bill to be paid in full.

Laurie Mains, and his wife, Anne-Marie, refused to answer questions as to whether Anne-Marie was paid for her services in organising this event. I actually have no problem with her charging for her professional services. What I do have a problem with is that it is standard practice for professional event organisers to ensure all outstanding bills are paid before the ‘surplus’ is paid to the organisation. This did not happen. I don’t know whether Anne-Marie was paid $10,000, $12,000 or even more but whatever the amount the issue is that the other bills should have been paid first.

I fully expect this bill to be paid as the ORFU did actually have sufficient funds to pay this bill as evidenced by the reported profit of $134,656 for the 2012 financial year.

I also remind you that the $350 guests to this black-tie dinner paid $250 per ticket which would have been paid with the understanding that this would cover the costs. When a function such as this is organised, the ticket price is to cover the costs of the meal, venue hire, cleaning etc. Once the bills are paid, then any surplus is genuine ‘profit’ and the organisation then can legally pocket this ‘profit’.

The fact that the ORFU pocketed this money instead of paying their bill is unacceptable.

It is time the ORFU did the decent thing and pay this bill.

Yours sincerely

Bev Butler

[ends]

—

Posted by Elizabeth Kerr

Mayoral DISGRACE: DCC won’t ask ORFU to repay $480K bailout

█ Related Posts and Comments:
14.3.14 ORFU flush to pay creditors

The Otago Rugby Football Union has recorded a $406,800 profit, just over two years after it faced going out of business because of debts of more than $2 million. The union now has reserves of more than $500,000, and is predicting a small profit for the coming year. […] When asked whether the union would consider repaying some creditors who lost money when the deal was agreed to save the union from liquidation, Union chairman Doug Harvie said that would not happen. (ODT 14.3.14)

24.5.12 ORFU board announced

The recovery package involved the NZRU providing a long term loan for working capital of $500,000 and Dunedin City Council writing off debt of $480,000. In addition, costs have been cut and additional sponsorship arranged. […] Almost $500,000 has been raised to allow the union to settle with creditors. A total of 156 non-profit organisations and other creditors who are all owed less than $5,000 will be paid in full. The remaining 24 creditors will be repaid the first $5,000 and half of what they are owed above that. The repayments are due to be made by the end of the month. (ODT 24.5.12)

—

Copy received. ODT 15.3.14 (page 14)

For more, enter the terms *orfu*, *dinner*, *jeremy curragh*, *bailout*, *martin legge*, *dia*, *pokies*, *jokers*, *ttcf*, or *pokie rorts* in the search box at left.

http://www.odt.co.nz/news/dunedin/295236/council-will-not-welsh-deal

—

Posted by Elizabeth Kerr

ORFU flush to pay creditors

When asked whether the union would consider repaying some creditors who lost money when the deal was agreed to save the union from liquidation, Union chairman Doug Harvie said that would not happen.

### ODT Online Fri, 14 Mar 2014
Profit pleases ORFU
By Steve Hepburn
The Otago Rugby Football Union has recorded a $406,800 profit, just over two years after it faced going out of business because of debts of more than $2 million.
The union now has reserves of more than $500,000, and is predicting a small profit for the coming year. […] In March 2012, the union was a few days away from going out of business, with debts of $2.2 million and creditors failing to come to agreement. But a rescue package was nailed down and the union traded its way out of difficulty, albeit with some concessions from creditors.
Read more

****

Correspondence received.

From: Bev Butler
To: Doug Harvie [ORFU]
CC: Steve Hepburn [ODT]
Subject: ORFU board responsible for paying the black tie dinner bill
Date: Fri, 14 Mar 2014 07:31:59 +1300

Friday 14th March 2014

Dear Doug

In today’s ODT the ORFU have reported a profit of $406,859 for the 2013 financial year and a profit of $134,656 for the 2012 financial year. Part of this so called profit is just pocketing of monies from unpaid bills.

As you are fully aware, the ORFU ran up a DVML bill of $25,352 for their black tie fund raiser at the stadium on 5th August 2011. This was for food, booze, soft drinks and cleaning.

Not only did the ORFU run off without paying this bill but the ORFU paid no venue hire for this brand new venue. Then to top it off the ORFU pocketed $52,000 from this fundraising event into their ‘pot’ which then is reported as profit for the 2012 financial year.

The fact that the ORFU then pressurised the Council to ‘write it off’ does not excuse the ORFU from the moral obligation to pay this bill.

I was quoted in the ODT as saying this was ‘obscene’. It is like booking a large restaurant, gorging yourselves on all their food and drink and hospitality then doing a runner.

It is ‘obscene’ and I expect this bill to be paid in full.

Laurie Mains, and his wife, Anne-Marie, refused to answer questions as to whether Anne-Marie was paid for her services in organising this event. I actually have no problem with her charging for her professional services. What I do have a problem with is that it is standard practice for professional event organisers to ensure all outstanding bills are paid before the ‘surplus’ is paid to the organisation. This did not happen. I don’t know whether Anne-Marie was paid $10,000, $12,000 or even more but whatever the amount the issue is that the other bills should have been paid first.

I fully expect this bill to be paid as the ORFU did actually have sufficient funds to pay this bill as evidenced by the reported profit of $134,656 for the 2012 financial year.

I also remind you that the $350 [sic] guests to this black-tie dinner paid $250 per ticket which would have been paid with the understanding that this would cover the costs. When a function such as this is organised, the ticket price is to cover the costs of the meal, venue hire, cleaning etc. Once the bills are paid, then any surplus is genuine ‘profit’ and the organisation then can legally pocket this ‘profit’.

The fact that the ORFU pocketed this money instead of paying their bill is unacceptable.

It is time the ORFU did the decent thing and pay this bill.

Yours sincerely

Bev Butler

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From: Doug Harvie [ORFU]
To: Bev Butler
CC: Steve Hepburn [ODT]
Subject: RE: ORFU board responsible for paying the black tie dinner bill
Date: Thu, 13 Mar 2014 20:16:32 +0000

You have your facts wrong Bev – ALL creditors of ORFU have been satisfied in full, in one way or another.

I will not be responding to any further correspondence on this matter.

D J Harvie
Partner

Harvie Green Wyatt
(P O Box 5740, Dunedin 9016, New Zealand. Phone +64 3 4775005 or +64 21 2234169. Fax +64 3 4775447

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From: Bev Butler
To: Doug Harvie [ORFU]
CC: Steve Hepburn [ODT]
Subject: RE: ORFU board responsible for paying the black tie dinner bill
Date: Fri, 14 Mar 2014 09:43:19 +1300

Dear Doug

Saying that “ALL creditors have been satisfied in full, in one way or another” is not the same as saying that all creditors have been PAID in full.
I know it is uncomfortable for you to be reminded of this but it still does not excuse the ORFU from doing the decent thing and paying their obscene black-tie dinner given they already had the money but decided to pocket it instead.
How about showing some decency or goodwill towards those that bailed you out of your financial mess now that you are flush with $406,859 profit?

Yours sincerely
Bev Butler

[ends]

For more, enter the terms *orfu*, *dinner*, *jeremy curragh*, *bailout*, *martin legge*, *dia*, *pokies*, *jokers*, *ttcf*, or *pokie rorts* in the search box at left.

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Posted by Elizabeth Kerr

University of Otago major sponsor for Highlanders

Announced today at Fubar Stadium
The University of Otago is the first university in New Zealand to sponsor a super rugby franchise.

The partners will exploit co-marketing initiatives and the Highlanders will be expected to participate in more university activities. The University logo will be painted on the stadium “grass” and added to the back of players’ jerseys alongside the Speight’s logo.

Does anyone realise Thugby is a dying art. YAWN.

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### ODT Online Mon, 10 Feb 2014
Otago University to sponsor Highlanders
The University of Otago has become one of the major sponsors of the Dunedin-based Highlanders rugby team. Vice-Chancellor Professor Harlene Hayne said the move is designed to raise the university’s profile. “[Forsyth Barr] Stadium and the Highlanders will be a canvas to highlight the University of Otago, which is located literally on the doorstep of this world-class facility,” she says. “Rugby is not just a game on a Saturday night – it’s a business as well.
Read more

### dunedintv.co.nz February 10, 2014 – 7:11pm
Local institutions partner up in a sponsorship deal the first of its kind
The University of Otago has become the first university in New Zealand to sign on as a major sponsor of a Super Rugby franchise. The deal between the university and the Highlanders was announced at Forsyth Barr Stadium this afternoon. Many of the Highlanders staff and players have studied at Otago, and both organisations feel the partnership will be beneficial.
Video

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THIS IS WHY A NEW “TRAINING POOL” IS NEEDED AT MOSGIEL

Names of “Stadium Councillors” (past and present) allegedly associated with driving the New Mosgiel Pool project:

● Syd Brown
● Colin Weatherall
● Peter Chin
● John Bezett

See pp14-15 of the following DCC document, and in particular point 4 (page 15):

http://www.dunedin.govt.nz/__data/assets/pdf_file/0011/401303/ma_council_m_2014_01_23,24,27.pdf

It’s easier to get a training pool for Professional Rugby built at Mosgiel (under the guise of it being a community pool) than it would be to have DCC ratepayers and general public get behind a pool at the Stadium/Logan Park, as mooted a few years back to go with the High Performance Sport New Zealand Dunedin Centre… the latter was foisted on Dunedin ratepayers with little if any consultation.

### ODT Online Tue, 20 Dec 2011
New centre to churn out champions
By Nigel Benson
A multimillion-dollar Dunedin sports excellence academy could be a factory for future world champions. The High Performance Sport New Zealand Dunedin Centre of Excellence was officially opened at Forsyth Barr Stadium yesterday. The $4.8 million building will be a hub for Otago athletes and house HPSNZ and its tenants – the Highlanders, Sports Medicine New Zealand and New Zealand Turf – which formerly occupied the old Logan Park art gallery building.
Read more

This NEW POOL project also “benefits” the likes of Martin Dillon and Co at Mosgiel because it will be built in the main street and attract more business to the shopping centre, and be a selling point (amenity!) for housing subdivisions in the area [forget noble district plan and spatial plan objectives to protect high class soils, said local developers].

KILLING many birds with one stone.
THE NEW POOL IS PROFESSIONAL RUGBY DRIVEN.
That is why it’s steaming ahead under the radar.

It’s a VERY cunning project that appears to have “not much resistance to it” at DCC because most plodders and desk huggers, councillors, and maybe even the chief executive, think it’s just a nice little community pool that’s out there to be benignly funded by the community –

CORRECTION: The thing is worth maybe $16 million AND MORE —definitely expensive enough for exclusive swim time booked for UNIVERSITY-RUGBY, all funded by the poor Mosgiel-Taieri ratepayers !!!!!!

The rorting RUGBY bastards. Imagine a (prestige) car firm will sponsor the RUGBY 4WDs and peoplemovers, on that new hot highway from DUD to MSG.

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Posted by Elizabeth Kerr

Martin Legge: Operation Chestnut [DIA’s PR exercise]

Received from Martin Legge.
Tuesday, 31 December 2013 10:54 p.m.

The relaunch of “Operation Chestnut” is nothing more than an expensive distraction for the masses – making them believe that the DIA and its Minister, Chris Tremain, are doing a great job. No small coincidence the operation was announced (Jan 2013) contemporaneous with the Government announcement that they did not intend changing the current pokie model despite the systemic corruption and the ongoing rorts. If you don’t agree with me then consider this:

1. “Operation Chestnut” was started way back in 2008 and the investigator submitted his report to Senior Management in 2008-09. The same management includes Debbie Despard, who now fronts the relaunch of Operation Chestnut but note she failed to tell media that the operation started in 2008 and she has been sitting on the report for five years watching as tens of millions flowed to people to whom it should not have.

2. DIA’s primary statutory function requires they properly regulate all the entities which they are solely responsible for licencing and that includes the pokie trusts, their managment and also the owners/operators of pokie bars. Current gambling law puts a clear statutory obligation on the DIA that they must be satisfied with these entities before they can lawfully issue a gambling licence. The legal obligation was put in place to ensure they did their job and prevented harm, and ensured the grant distribution process was fair to all grant applicants. That obligation does not require the resources of the Serious Fraud Office or the standard of proof required in a criminal case, just a balance of probabilities. Under these circumstances the public could now rightly demand why all of the issues and recommendations identified in Bermingham’s report of 2009 were not immediately addressed first and foremost with the pokie trusts named and why now after five years the taxpayer is funding a relaunch or rehash of an operation which until now was ignored by DIA.

3. In 2010, during the four to five years of DIA inaction, DIA seek and receive documents and testimony from me and others that not only linked ORFU and Harness Racing (Mike O’Brien) to three South Auckland bars but of far greater significance was the fact that the evidence implicated the involvement of one of NZ’s biggest trusts, TTCF Inc, now TTCF Ltd, and how its trustees were complicit to such arrangements and were knowingly approving millions of dollars of grants to both ORFU and Racing between 2005 and 2011.

The DIA, OAG, and now the SFO have all given me different stories about why TTCF has been excluded from Operation Chestnut but it is blatantly obvious to me and others that to include O’Brien’s relationship with ORFU and those three Jokers bars would mean including TTCF. It would open up a can of worms with the Government because, as we know, TTCF trustees are very very well connected and they have politicians who will pick up the phone.

Quite frankly, as an ex Police Prosecutor and Detective Sergeant, I am appalled at this situation. Operation Chestnut has become nothing more than an exercise in regaining the public confidence in DIA, its Minister and the gambling sector by taking scalps that fall outside their primary responsibility. Evidence implicating the pokie trusts and their trustees is being ignored or suppressed to take the scalp of someone who essentially sits outside the industry. Mike O’Brien would not have been able to get one cent, let alone the $30 million that DIA/SFO allege has been gained, if it weren’t for the primary offenders, the persons with the ultimate public responsibility, that approved that money back to those interests. Their part in the offending is far more serious than anyone outside the industry.

Pokie trust boards are stacked with high profile well connected personalities all of whom receive a payment of around $50-100k per annum for the privilege. The NZCT board includes ex Wellington Mayor, Kerry Prendergast, who is also an advisor to the Auditor General. TTCF’s Chairman is Ross Clow who is now with Auckland City Council, and then there is Warren Flaunty, NZ’s most elected man. They are the ones who approved these grants and yet they are barely mentioned, quoted or identified by media, let alone interviewed by DIA or SFO.

Last but not least, another conscientious DIA investigator recently contacted me to advise that they saw the full NZRU report into the demise of the ORFU that was supplied to the DIA. They have confirmed that it contains considerable detail of ORFU’s ownership of the Jokers bars and their relationship with Mike O’Brien and TTCF. The report was provided to DIA simply because NZRU wanted to judge the risk of DIA legal action before pumping funds into ORFU. Little wonder DIA continue to withhold that report.

[ends]

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Related Post and Comments:
30.12.13 DIA insights: Pokie rorts, money-go-rounds, names

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Posted by Elizabeth Kerr

DIA insights: Pokie rorts, money-go-rounds, names

This time last week you might have read front-page news at ODT, a story by Hamish McNeilly, Freeze on grants urged (23.12.13) — “Leaked documents confirm the earlier involvement of southern racing clubs in what has become a major multi-agency investigation involving alleged pokie money-go-rounds.” Cont./

Yesterday (and previous days) interesting activity has displayed in our Site Stats —referrers include racechat.co.nz and racecafe.co.nz

View two comments posted in response, here and here.

Go to this thread at RaceCafe—
Some light reading – started by Sheriff, 27 Dec 2013.
Mentions of Operation Chestnut, and more – Sheriff has posted two file attachments. [based on this ODT could’ve had a ‘field day’, it decided not to]

The second attachment of 22 pages compiled by gambling inspector DM Bermingham (Christchurch) is available for download here.

█ Report into Racing Club Activities 222 (DOC, 159.5KB)

The following draft provides a useful checklist [via screenshot]:

To open the file attachments at RaceCafe you’ll need to register as a member.

For more on Pokie Rorts at this website, enter terms such as *pokies*, *pokierorts*, *whistleblower*, *dia*, *sfo*, *racing*, *martin legge*, *orfu*, *ttcf* in the search box at right.

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Posted by Elizabeth Kerr

*Image: ODT 23.12.13 – front page detail tweaked by whatifdunedin

Corruption in NZ Sport: Where has John Key PM been hiding ???

● The Trusts Charitable Foundation (TTCF Inc) ● The Trusts Community Foundation Ltd (TTCF Ltd) ● Otago Rugby Football Union (ORFU) ● Professional Rugby ● Centre of Excellence for Amateur Sport ● Harness Racing ● Department of Internal Affairs (DIA) ● Gambling Commission ● Pokies ● Rorts ● Organised Crime ● Serious Fraud ● Political Interference

All-time classic lines from Dear John, Prime Minister and Minister of Tourism:

### NZ Herald Online 3:21 PM Thursday Dec 5, 2013
Allegations are ‘very, very serious’ – Key
By Dylan Cleaver
Prime Minister John Key said it would be “very, very serious” if match fixing allegations against three former New Zealand cricketers were proved true. “New Zealand is a country that sees itself as a very above-board, honest place both to do business and to play sport so it would be deeply concerning if this was factually correct.”
“New Zealanders expect sport to be played fairly and they expect sports men and women to perform – in a way which upholds the ethics of their sport and not to be doing it to make money in an underhand way.”
“It would be a very, very serious issue indeed if it is proved to be correct.”
NZH Link

Fairfax go further through Stuff, with McCully (Minister of Foreign Affairs and Minister for Sport and Recreation) doing a great line in used car sales:

### stuff.co.nz Last updated 15:06 05/12/2013
NZC won’t name trio in corruption investigation
By Matt Richens, Stacey Kirk and Fairfax Media
. . . CORRUPTION REPORT
The news comes within a week of the Government releasing a long-awaited report into corruption in New Zealand sport in which it asserted there was little for Kiwi sports fans to be concerned about. Sports Minister Murray McCully revealed few details of the nine-month investigation which was prompted by the scandal in Australia around doping and betting in sport. But McCully promised New Zealand would ramp up its fight against corruption in sport by implementing greater information-sharing among government and sporting bodies to stamp out potential match-fixing, doping and illegal activity. He added that a national match-fixing policy would also be established in 2014.
“The report found no evidence of widespread drug use or organised crime in New Zealand sport,” McCully said. “But it would be naive to think New Zealand is insulated from these problems. This is why we are taking pre-emptive steps to safeguard our athletes and clean sporting reputation.”
The report was instigated after the Australia Crime Commission earlier this year linked organised crime and banned substances to several Australian sporting codes including rugby league and Australian Rules football. But Sport New Zealand (SNZ) concluded there was little need for the Government, sporting or law-enforcement agencies to conduct a similar investigation in New Zealand.
Stuff Link

FACTSHEETS
● Organised Crime and Drugs in Sport New Zealand assessment and report
● New Zealand Policy on Sports Match-Fixing and Related Corruption

Note the assessment and report DO NOT extend to corruption, fraud and organised crime exercised in other ‘ways’ by New Zealand sporting entities to showcase, develop, and finance their activities in the bid to remain ‘solvent’
[by any means, it seems].

█ Enter the term *pokies* in the search box at right to find related posts and comments related to professional rugby, corruption, fraud, whistleblowing, and government departmental/political connections.

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Posted by Elizabeth Kerr

NZRU, ORFU blasphemies etc

● The Trusts Charitable Foundation (TTCF Inc) ● The Trusts Community Foundation Ltd (TTCF Ltd) ● Otago Rugby Football Union (ORFU) ● Professional Rugby ● Centre of Excellence for Amateur Sport ● Harness Racing ● Department of Internal Affairs (DIA) ● Gambling Commission ● Pokies ● Rorts ● Organised Crime ● Serious Fraud ● Political Interference

### ODT Online Tue, 15 Oct 2013
ORFU report to stay confidential
By Hamish McNeilly
A confidential report following the financial collapse of the Otago Rugby Football Union is likely to remain confidential.
The Dunedin City Council agreed to write off a debt of more than $400,000 and Dunedin Venues Management Ltd a debt of $80,000 to help the union avoid liquidation in March last year.
The New Zealand Rugby Union, which lent the cash-strapped union $500,000, commissioned a report by Cascade Consulting to look at the union’s involvement with pokie grants.
The report was later supplied to the Department of Internal Affairs, which declined to release the documents on the grounds it ”would be likely to prejudice the supply of similar information”.

”The department does not consider the withholding of the report on ORFU provided by NZRU would diminish public confidence in the department as a responsible regulator of the gambling sector and does not consider that these reasons for withholding the information are outweighed by other considerations which render it desirable, in the public interest, to make the information available.” –DIA

The Otago Daily Times lodged a complaint with the office of the Ombudsman on July 25, 2012, asking for the release of the information.
Chief Ombudsman Dame Beverley Wakem, in a provisional opinion released this week, said the department was entitled to withhold the information.
Read more

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For more information at this site, enter terms such as *dia*, *sfo*, *oag*, *orfu*, *martin legge*, *ttcf*, *russell garbutt*, *pokies* or *pokierorts” in the search box at right.

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Posted by Elizabeth Kerr

Leave Otago white collar criminals ALONE, and other unfairness

Ministers: Anne Tolley & Paula Bennett

### ODT Online Mon, 15 Jul 2013
Proceeds of crime forfeited
By Hamish McNeilly
Police have seized millions of dollars worth of assets – including almost $1 million from criminals in Otago and Southland – since a tough new law came into force. The Criminal Proceeds (Recovery) Act took effect on December 1, 2009. Assets worth an estimated $29 million have been forfeited, including cash ($10.48 million), properties ($13.67 million) and vehicles ($2 million). […] Figures released to the ODT under the Official Information Act show 14 assets with an estimated value of $862,105.22 have been forfeited in the Southern district.
Read more

● Whereabouts of Michael Swann assets?
People can contact Dunedin police on (03) 471-4800 or via the anonymous Crimestoppers line, 0800-555-111.

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Posted by Elizabeth Kerr

*Images: 3news.co.nz – Anne Tolley, zimbio.com – Paula Bennett

Carisbrook: Auditor-General #fails Dunedin residents and ratepayers

Dunedin residents Bev Butler and Russell Garbutt each sought an inquiry into the Carisbrook deals.

(see my comment and other comments received)

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### ODT Online Tue, 28 May 2013
No Carisbrook inquiry, auditor says
By Chris Morris
The Dunedin City Council’s possible multimillion-dollar loss from the sale of Carisbrook does not warrant an investigation, the Office of the Auditor-general says.

”We do not regard the purchase and disposal as raising issues that relate to our Delta inquiry, which is focused on the property investment actions of a council subsidiary.”

OAG staff have confirmed that there will be no investigation of the council’s purchase, and pending sale, of Carisbrook properties, which could end up costing the council more than $4 million. That followed two separate requests received by the office in February, asking for the Carisbrook deal to be added to a wider OAG investigation of land purchases by council-owned company Delta. An OAG statement yesterday said the decision not to proceed came after reviewing council documents, which showed the issue ”does not warrant further inquiry”.
Read more

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Related Post and Comments:
15.2.13 Carisbrook: Call for OAG investigation into DCC / ORFU deals

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Posted by Elizabeth Kerr

ORFU should be subject to full forensic investigation

The Trusts Charitable Foundation (TTCF Inc) ● The Trusts Community Foundation Ltd (TTCF Ltd) ● Otago Rugby Football Union (ORFU) ● Professional Rugby ● Centre of Excellence for Amateur Sport ● Harness Racing ● Department of Internal Affairs (DIA) ● Gambling Commission ● Pokies ● Rorts ● Organised Crime ● Serious Fraud ● Political Interference

In two words, pokie rorts.

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### ODT Online Fri, 15 Mar 2013
ORFU back in black, but position still ‘fragile’
By Steve Hepburn
The Otago Rugby Football Union is back in the black – recording an operating profit of more than $200,000 – but has warned its financial position remains fragile. It is the first profit recorded by the union since 2005, but it says it is still spending too much on its ITM Cup team. The union, saddled with debts of more than $2 million, flirted with liquidation last year, and only stayed afloat through a rescue package and community support. A new board was appointed and will present its first annual report to the union’s annual meeting on Monday. The union’s financial results are subject to the approval of the clubs at the meeting.
Read more

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Posted by Elizabeth Kerr

Carisbrook: Call for OAG investigation into DCC / ORFU deals

Time for Public Vote of No Confidence in your Council?

Latest via Fairfax . . . local residents Bev Butler and Russell Garbutt are calling for an investigation into Dunedin City Council deals involving Carisbrook and the ORFU (professional rugby).

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### stuff.co.nz Last updated 10:38 15/02/2013
Call for Carisbrook losses to be investigated
By Wilma McCorkindale – DUNEDIN
Critics of Dunedin City Council say more losses of millions of dollars for city ratepayers from the sale of Carisbrook should be included in a current Auditor General’s investigation. The Office of the Auditor-General is investigating other property deals by the council’s companies.
Russell Garbutt and Bev Butler, both critics of financial arrangements between the council and the Otago Rugby Football Union (ORFU), say the millions of dollars in losses incurred by city ratepayers in the sale of Carisbrook require explanation.
The council has entered a conditional sale agreement to unload Carisbrook, which it bought from the financially ailing ORFU for $6 million in 2009. It paid $1 million for adjacent housing owned by an ORFU trust resulting in the council borrowing the $7 million total package price. The council is releasing few other details about the sale agreement but it is being widely reported that construction company Calder Stewart is the buyer, for $3.5 million. Council had reportedly already sold half the car parking for $727,000 and the housing was sold some time ago for $692,000.
Ms Butler believed an investigation should be included in one under way by the Office of the Auditor-General into council-owned company land deals in the Lakes District. ”Obviously there are some questions that still need to be answered in terms of the actual value of the Carisbrook property.”
Mr Garbutt described the Carisbrook deals as extraordinary.
Read more

****

Councillors Kate Wilson and Richard Thomson should be DUMPED

### ch9.co.nz February 15, 2013 – 6:49pm
Auditor General advises councillors they can participate
The Auditor General has advised two DCC councillors they can participate in decisions on an Events Attraction Fund. Richard Thomson and Kate Wilson declared their business interests at an Annual Plan Meeting in January. Both said their businesses benefited from the Elton John Concert. They were excluded from participating and voting on proposed events. The Office of the Auditor General says while they were affected in a similar way to the public they would not be prohibited in participating.
Ch9 Link

Related Post and Comments:
29.1.13 Pecuniary interest: Crs Wilson and Thomson in events fund debate

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Posted by Elizabeth Kerr

Editorial bias

Received today from Russell Garbutt [email].

Have readers of the ODT online site noticed the failure of the ODT Online Editor to acknowledge that they are abridging comments or simply wiping them?

Two examples of mine recently spring to mind and the context shows where the sympathies of the ODT lies. The first was in response to a comment made by speedfreak43 who noted that the GV of Carisbrook at the time the dear old DCC masquerading as a body acting in the interests of the ratepayers was about $1.5m when the purchase price from the ORFU who really run the DCC, was $7m. This is what I wrote, which simply vanished into thin air:

“speedfreak43, I think you are pretty close to the mark with the recollection of a GV of about $1.5m for Carisbrook. That makes this story even more worth pursuing by the ODT. Here we have a previous owner in the financial doodah for $7m – interestingly because of their purchases of Auckland bars to carry out their pokie fund rort – bailed out by a Council decision to purchase at a price many times more than what is clearly a market price. All backed up by “valuations” that appear to be nothing other than part of the shonky deals done behind closed doors. All replicated almost exactly with Luggate and Jack’s Point. Bearing in mind that every $1m of spend without income that this Council does equates to 1% on the rates and you can see that these 3 property deals alone have cost Dunedin ratepayers close on 15% of rates increases. My question again – who is going to hold these Councillors accountable?”

Now why this sensitivity? The ORFU were involved in a rort and everyone knows that. Were there shonky deals done behind closed doors? Well, we have Carisbrook, Jacks Point and Luggate as examples that are in the public domain. Is it that the ODT don’t want some Councillors to be exposed for what they are? Well here my posting in another thread with the deleted portion emboldened.

“If the promoters are well aware in advance of sound issues at the stadium and have prepared accordingly, then a simple question remains unanswered. Why do patrons who shell out money to see and hear acts at the stadium rate the sound quality over the PA systems as “abhorrent”? While pondering that answer, why is it that, after we were all told that the surface was the most high-tech, durable and incredible surface ever devised that the recent soccer fixture rated the surface as being the worst they had played on? When considering the answer to that question, readers may like to consider just how much they have paid in their rates to achieve these levels of mediocrity. Perhaps Malcolm Farry and the stadium Councillors could provide some answers?”

So, the ODT had printed stories about the sound quality and the turf quality so they couldn’t take exception to that, but they didn’t want Farry and the Stadium Councillors being asked to be held accountable.

This I suggest, is a very clear indication of where the ODT’s sympathies and probable support will be for any forthcoming Council elections. Can it logically be seen in any other way?

[ends]

Related Posts and Comments:
23.1.13 Editorial spin, disagrees?!
1.1.13 Journalist sums up 2012, against the ‘odds’ how does it rate ?
10.6.12 What won’t get printed on ORT’s front page (pssst, about the Albatross…….)
3.8.12 Extraordinary editorials
28.7.12 Pokie fraud: ODT fails to notice own backyard
26.6.12 Defamation
7.5.12 ODT: “the cupboard has been bare” [still is]
4.2.12 Editor pitches for rugby nursery
31.12.11 Dishonourable mention
4.10.11 Something hyped in the news
[the list goes on . . . ]

Editorial Note:
When the What if? moderators enter “abridge” in their dashboard search box up come 74 items of observation and complaint on multiple threads about comments being abridged or not published after submission to ODT Online.
Spot the trend.

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Posted by Elizabeth Kerr

Martin Legge: DIA audit criticism #pokierorts #coverup

Comment received from Martin Legge
Sunday, 18 November 2012 5:41 p.m.

In 2007, the National Party criticised the Labour Government following a damning report by the Office of the Auditor General into DIA’s regulation of the pokie industry. The boot has been on the other foot for four years, and yet do we hear calls from anyone in the Labour Party, particularly in Dunedin?

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Press Release [2007]
Auditor-General slams Internal Affairs over gaming says National Party MP

Internal Affairs Minister Rick Barker must act now to address the criticisms of his department over its failure to effectively control the operation of non-casino gaming machines, says National Party Internal Affairs spokeswoman Sandra Goudie.

The Controller and Auditor-General, Kevin Brady, today released his report Department of Internal Affairs: Effectiveness of controls on non-casino gaming machines.

The report shows the department’s policies and procedures do not comply with the Gambling Act 2003 and includes 17 recommendations for change.

“The department’s own ‘comprehensive licensing manual’ outlines policies and procedures that do not comply with the Act and shows licensing staff were issuing and renewing licenses without delegated authority.

“The report also found that the department’s audit checklist and manual were not consistent with the Act, and information was missing from the department’s risk profile rating of operators.

“This report shows a department clearly out of touch with its key role and clearly being ignored by the Minister.

“How could the Minister have let his department get into such a state where any old staff member can approve a licence?

“Its [sic] no wonder eyebrows have been raised over the department’s inability to get convictions of operators in breach of the Act.

“It is time Mr Barker gave his department some much needed ministerial direction.”

—

Audit Report from Kevin Brady
14 February 2007

Foreword
Department of Internal Affairs: Effectiveness of controls on non-casino gaming machines.

I felt it timely to review the effectiveness of controls on non-casino gaming machines because of the large amount of money placed in the machines (estimated by the Department of Internal Affairs at more than $8,500 million annually), the potential for the machines to cause harm in the form of problem gambling, the amount of funds from the machines going to clubs and the wider community, and a relatively new legislative framework covering gambling.

The Department of Internal Affairs administers controls on non-casino gaming machines. My review focused on three main areas of controls. These were the controls on licensing of non-casino gaming machine operators and venues, on operator and venue costs, and on the distribution and application of funds to the community including through grants.

I found that the Department of Internal Affairs has extensive policies and procedures for licensing and auditing of venues and operators, and a risk-based approach to compliance. However, there were areas of its policies, procedures, and practice that did not meet all of the requirements of the Gambling Act 2003. These included its procedure for renewing licences and for auditing. I also found that its licensing staff were issuing and renewing licences without the necessary delegated authority. The Department has committed to rectifying this issue, and had largely done so at the time this report was being finalised.

While the Department of Internal Affairs has committed to comprehensively monitoring the outcomes being achieved in the non-casino gaming machine industry, it is not yet doing this in a systematic or comprehensive manner. This limits the Department’s ability to demonstrate the results of its work and refine the way it works to achieve better outcomes.

I thank staff in the Department of Internal Affairs for their assistance, responsiveness, and co-operation during the audit. I also thank people in the industry who generously gave their time and views during the audit.

The Department has been very engaged in, and supportive of, the audit process. Its commitment to implementing the audit findings to make improvements is pleasing.

K B Brady
Controller and Auditor-General

[ends]

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Recent Posts:
13.11.12 Martin Legge replies to Sunday Star-Times story #DIA #coverup
11.11.12 Department of Internal Affairs #pokierorts #coverup #TTCF

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Posted by Elizabeth Kerr

Martin Legge replies to Sunday Star-Times story #DIA #coverup

### Sunday Star-Times Sun, 11 Nov 2012
Pokie man stopped from rort inquiries
By Steve Kilgallon
A senior Internal Affairs investigator says he was prevented from probing pokie rorts by his own department because it did not have the confidence to prosecute major crimes. Dave Bermingham, an investigator and analyst who left the department in August, said Internal Affairs was incompetent and should be stripped of its role investigating gaming machine fraud. {continues}
*No weblink available. Full text reproduced at post.

Comment received from Martin Legge
Tuesday, 13 November 2012 11:37 a.m.

Tony Molloy QC had this to say about a Government Regulator after his enquiry into the collapse of the finance industry:

“The destruction of billions of dollars of ma and pa retail wealth, through finance company meltdowns was the inevitable consequences of at least three decades of unreadiness, unwillingness and inability of regulators, enforcers, courts, lawyers and accountants to fulfil their roles with integrity.”

The Commission of Enquiry into The Pike River Disaster had this to say about another Government Regulator, the Department of Labour:

“DOL’s compliance strategy did not require an assessment of Pike’s safety and operational information. The inspectors did not have a system, training or time to do so. When, at the hearings, they were shown examples of safety information obtained by the commission from Pike’s records, the inspectors were visibly dismayed. This was not a case of individual fault, but of departmental failure to resource, manage and adequately support a diminished mining inspectorate.

DOL’s main public accountability documents, the statements of intent and annual reports to Parliament, did not reveal any concern about DOL’s ability to administer the health and safety legislation. The statements of intent and the annual reports contained many high-level statements on outcomes and outputs but it was impossible to gain much insight into the performance of the mining inspectorate, or the health and safety inspectors as a whole. Measures used, such as the raw numbers of investigations carried out by the health and safety inspectorate, were not informative.

The gap between the high-level statements in those documents and the reality on the ground was remarkable.”

Maarten Quivooy was the NZ Safety Manager at the DOL over this period but left DOL to become DIA’s head of Gambling Compliance. When the Sunday Star-Times put the allegations of cover ups and closing down of investigations within the pokie industry which he now oversees he had this to say:

“They do their investigation work to the best of their ability and from their perspective it can seem like it goes into a black hole but it has had active and thorough scrutiny by senior management.”

His comments suggest that the “remarkable gap” between high level statements and reality is now opening up within DIA !!!

To comfort the public and Politicians, Quivooy is quick to claim their investigation into TTCF was reviewed by Office of the Auditor General. What he doesn’t tell the public is that in July 2009, over the same period that Bermingham and DIA investigators were conducting their investigations into TTCF, Audit NZ was conducting its own independent and statutory audit of TTCF, as a public entity. That audit also found serious issues involving expenditure but neither Audit NZ or its parent body (OAG) took action or followed up on the findings at the time. DIA and OAG only bounced into life when I appeared as a “whistleblower” in October 2010.

OAG have never given me a satisfactory explanation as to why they didn’t immediately act or follow up to protect millions of dollars of public money but their own failure to act might explain why OAG have been so willing to endorse the DIA investigation that I have labelled a whitewash and Bermingham recently describes as a cover up.

A case of two well- resourced government regulators sticking together to avoid embarrassment.

[ends]

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Posted by Elizabeth Kerr

Department of Internal Affairs #pokierorts #coverup #TTCF

● The Trusts Charitable Foundation (TTCF Inc) ● The Trusts Community Foundation Ltd (TTCF Ltd) ● Otago Rugby Football Union (ORFU) ● Professional Rugby ● Centre of Excellence for Amateur Sport ● Harness Racing ● Department of Internal Affairs (DIA) ● Gambling Commission ● Pokies ● Rorts ● Organised Crime ● Serious Fraud ● Political Interference

*Weblink not available at stuff.co.nz
The following text in the print edition of today’s Sunday Star-Times (page A6) has been scanned, in the public interest. This post will be updated when a link appears.

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### Sunday Star-Times Sun, 11 Nov 2012
Pokie man stopped from rort inquiries
By Steve Kilgallon
A senior Internal Affairs investigator says he was prevented from probing pokie rorts by his own department because it did not have the confidence to prosecute major crimes.
Dave Bermingham, an investigator and analyst who left the department in August, said Internal Affairs was incompetent and should be stripped of its role investigating gaming machine fraud.
Bermingham’s claims will be discussed in Parliament, with the Greens’ Internal Affairs spokeswoman Denise Roche prepared to table questions about the department’s behaviour. “They had no appetite for the [gaming] industry and they don’t understand it,” said Bermingham, a former fraud squad policeman.
“There are very clever people committing frauds… and a government agency which takes little or no action and wants to treat it as regulation and compliance. When investigators identified serious breaches of the Gaming Act, they were unsupported and stifled and their investigations [were] watered down, or just, over time, vanished.”
Bermingham said pokie scams revealed in the Star-Times over the past five years were just the “tip of the iceberg: some pokie trusts have been allowed to get away with blatant theft and dishonesty”.
For two years from 2008, Bermingham compiled several investigation reports into a controversial pokie trust, The Trusts Charitable Foundation (TTCF), and recommended serious sanctions, and even criminal action, be taken.
The case was later taken off him, and either no action taken or minor penalties issued.
When the case was reopened this year following Star-Times stories, Bermingham wasn’t asked for help. Instead, he says: “A senior manager here made a statement to me that he had been told to make the thing go away.
“I suspected it was a semi-flippant comment, but as it transpires, that’s what they have done. I was the person who knew the most information about the whole thing, but they deliberately never talked to me about it.”
Former TTCF contractor Martin Legge, who first brought the TTCF story to light, said Bermingham’s revelations were “further proof that the investigation into The Trusts Community Foundation was a cover-up. Internal Affairs are being dictated to by pokie trusts and protecting their interests above those of the community.”
After he filed his “damning” reports into TTCF, Bermingham said he was flown almost daily to Wellington to discuss them. Then suddenly he was shut out. “I accept you can’t always lay charges, but there are other avenues that can be taken. But the appetite was not there to act.”
Bermingham said he became increasingly frustrated and accepted redundancy in a reshuffle.
“The department has some very clever people who know how to follow the money, and they get stopped and everyone becomes deflated and stops looking.”
He said constant lobbying by politicians in specific cases had also made DIA gun-shy. Questions asked of the department by Revenue Minister Peter Dunne around the TTCF case had helped kill it, he said. “The mere questioning seemed to cause the department to go gun-shy and shut things down. Management fear for their careers; they would rather take no action, make no decision so they are not criticised.”
Just before leaving Internal Affairs, Bermingham conducted a detailed study of where TTCF gave grants, and discovered a huge flow of money from North Island poker machines into South Island racing clubs, but was told not to progress to the next stage.
Internal Affairs boss Maarten Quivooy denied managers had been told to shut down the TTCF inquiry.
He said decisions not to prosecute were rigorously tested with Crown Law while the TTCF inquiry had been examined by the auditor-general.
But he said he understood Bermingham’s frustrations.
“If you look from the perspective of a frontline inspector, that can sometimes be their experience,” Quivooy said. “They do their investigation work to the best of their ability and, from their perspective, it can look like it has gone into a black hole. But it has had active and thorough scrutiny and consideration by senior management.
“We can do better how we communicate that to staff and how we provide feedback.”
Graeme Ramsey, chief executive of the Problem Gambling Foundation, said despite a long history of rorts, there had yet to be a prosecution of a gaming trust trustee.

Who is Maarten Quivooy? See comment.

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Sunday Star-Times:
29.4.12 Steve Kilgallon Case closed without call to whistleblower
22.4.12 Steve Kilgallon The inside man

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Related Posts:
26.10.12 Department of Internal Affairs (DIA) – CULPABLE #pokierorts
24.10.12 Bad press for ORFU -NZ Herald
3.10.12 DScene: Russell Garbutt seeks DIA file to Crown Law #PokieRorts
1.10.12 Apology requested from ORFU [email]
15.9.12 Martin Legge responds to NZ Herald news
27.8.12 DIA’s political cover-up of TTCF and ORFU rorts
22.8.12 Martin Legge releases emails to Dunedin community #ORFU
15.8.12 Keeping ORFU sweet [email]
12.8.12 DIA reshuffle: new investigation teams, money laundering, criticism
28.7.12 Pokie fraud: ODT fails to notice own backyard
25.7.12 Martin Legge backgrounds TTCF (pokie trust) and Portage and Waitakere Licensing Trusts #DIA
24.7.12 Mention in NZ Herald dispatches: TTCF and friends ORFU
15.7.12 Martin Legge responds to media stories on Murray Acklin, TTCF and DIA
26.6.12 Department of Internal Affairs, ORFU, Centre of Excellence for Amateur Sport, and TTCF
22.6.12 Connections: ORFU and local harness racing
22.6.12 ORFU board responsibility for black-tie dinner bill [emails]
5.6.12 The Gambling (Gambling Harm Reduction) Amendment Bill
4.6.12 Questions: ORFU and the Centre of Excellence for Amateur Sport
26.5.12 DIA media release
23.5.12 NZRU-appointed change manager talks
29.4.12 Department of Internal Affairs, the gambling authority
22.4.12 DIA, OAG, TTCF and Otago Rugby swim below the line

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Posted by Elizabeth Kerr

Department of Internal Affairs (DIA) – CULPABLE #pokierorts

● The Trusts Charitable Foundation (TTCF Inc) ● The Trusts Community Foundation Ltd (TTCF Ltd) ● Otago Rugby Football Union (ORFU) ● Professional Rugby ● Centre of Excellence for Amateur Sport ● Harness Racing ● Department of Internal Affairs (DIA) ● Gambling Commission ● Pokies ● Rorts ● Organised Crime ● Serious Fraud ● Political Interference

### ODT Online Fri, 26 Oct 2012
Trust audit labelled ‘a white wash’
By Hamish McNeilly
[Whistleblower Martin Legge] says an Internal Affairs audit is a “whitewash” after it failed to act on his material involving the Otago Rugby Football Union, South Auckland bars and a pokie trust.[…]An audit of The Trusts Community Foundation Ltd (TTCFL) was released last week under the Official Information Act. Earlier this year, the ODT reported the union had bought three Auckland-based bars and entered a relationship with the pokies trust, then called The Trusts Charitable Foundation (TTCF).

“At each change of ownership, it was looked at, and there was no evidence of illegality, and we had no reason to not approve the changes,” the [DIA] audit noted.

Mr Legge alleges that relationship – concerning the ownership of the South Auckland bars known as the “Jokers Group” – resulted in the union receiving more than $6 million in pokie grants from the trust between 2005 and 2011.
The Internal Affairs audit, which covers the period April 1, 2010, to January 31 this year, noted “the Department has undertaken a number of separate investigations into ‘Jokers Group’ and its ownership company over the years”.

ORFU general manager Richard Kinley said he could not comment because the audit concerned an earlier administration, and he had not read the released audit.

The audit also examined three Jokers Group grants given to the ORFU from the trust totalling $379,767 in approved payments. They were found to be compliant.
Read more

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Posted by Elizabeth Kerr

Bad press for ORFU –NZ Herald

● The Trusts Charitable Foundation (TTCF Inc) ● The Trusts Community Foundation Ltd (TTCF Ltd) ● Otago Rugby Football Union (ORFU) ● Professional Rugby ● Centre of Excellence for Amateur Sport ● Harness Racing ● Department of Internal Affairs (DIA) ● Gambling Commission ● Pokies ● Rorts ● Organised Crime ● Serious Fraud ● Political Interference

### nzherald.co.nz 5:30 AM Wednesday Oct 24, 2012
Opinion
We’re relying on money poured through pokies
By Brian Rudman
The latest Pub Charity advertisement, promoting the $20,186,931 distributed to good causes over the past six months, has a certain similarity to the advertising blitzkrieg being conducted by the cigarette industry. Both try to distract us from the distinctly unpleasant underbellies of their respective industries.[…]Pub Charity chief executive Martin Cheer, in last Sunday’s advertisement[…]claimed that “charitable donations” that are “critical for causes from air rescue to opera” will be in jeopardy. He said Auckland Council was about to feed community groups and charitable organisations “a super size pile of bull about the future of charitable gaming machines in their territory” and that staff were using incorrect and misleading statistics to persuade community boards that “gaming machine funding is not that important or effective”. Mr Cheer’s comments are just a rehash of an earlier statement he issued in May, but they did draw my attention once more to where Pub Charities funds come from.

Two years ago, the former chief executive of the Community Gaming Association, Francis Wever, wrote to the Minister of Internal Affairs claiming that corrupt behaviour in his own industry was “all-pervasive and pernicious” with “endemic non-compliance”.

This year we read of how the Otago Rugby Union bought three South Auckland pubs then siphoned $5 million in pokie profits out of the areas – mainly Manurewa – to help prop up the failing Dunedin sporting body. What’s protecting the pokie industry from reform is that it props up respectable New Zealand.
Read more

● Brian Rudman is a Herald columnist looking at Auckland and national issues.

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Posted by Elizabeth Kerr