Tag Archives: Prosecution

Cr Vandervis replies to local newspaper

Updated post Sun, 26 Apr 2015 at 2:44 p.m.

Meeting of the Dunedin City Council on Tuesday, 28 April 2015 at 1:00 PM, Council Chamber, Municipal Chambers

Agenda – Council – 28/04/2015 (PDF, 96.6 KB)

Report – Council – 28/04/2015 (PDF, 172.7 KB)
Conduct Committee Report to Council

Updated post Sat, 25 Apr 2015 at 3:00 a.m.

From: Lee Vandervis
Sent: ‎Friday‎, ‎24‎ ‎April‎ ‎2015 ‎9‎:‎02‎ ‎p.m.
To: Chris Morris [ODT], Nicholas George S Smith [ODT]
Cc: Elizabeth Kerr
Subject: Follow-up questions

Dear Mr Morris,

There are serious DCC issues underpinning the Code of Conduct process.

DCC Bureaucracy has run many months of self-investigations costing quarter of a million dollars, which this Councillor has not been allowed to see the results of.

Unbelievable claims that the acknowledged $1.6++ million worth of fraud was all perpetrated by one man only, now dead.

Months of Police investigation leading nowhere, with no prosecutions because they only looked at missing vehicles and anticipated that all receivers had to say was they thought the dead man had authority to sell in the way he did. And they all did. This despite many assurances from CEO Bidrose to me from the beginning that there would be a full and wide investigation.

My requests to the Serious Fraud Office [including discussion of 3 year plus investigation of Landfill frauds by local Police] to do the job local Police are seem not to be up to. CEO Bidrose claims SFO had been asked to investigate but SFO have no knowledge of this when I ask them to investigate.

Police investigation only claimed to be widened by Police management after my exposing of their very narrow investigation. Still no prosecutions, or Police interest to date in my offered evidence of Citifleet maintenance contract fraud, credit card fraud etc.

Mayor Cull and CEO Bidrose saying that no public comment allowed while investigations ongoing, but commenting themselves that it was all down to just one man and that the public can have confidence in the living remainder of the DCC organisation.

Mayor Cull accepting non-confirming [devoid of any evidence] Conduct complaints against me.
Crs. Thomson and Staynes add tampered evidence to one of their complaints but not the other – both immediately accepted again by Mayor Cull.

Mayor Cull falsely claims it is within his authority to choose the membership of the Code of Conduct committee against me. Is defeated.
Mayor Cull chooses again, this time with majority Councillor rubber stamp.

CEO Bidrose fails to ensure proper meeting and Code of Conduct processes over many weeks, fails to read my related email, finally culminating in hallway loudness. My full apology should have been printed and still should.

Audit and Risk committee fails to address major DCC problem of contract fraud, identifying 17 types of fraud but not including contract or tender fraud which I have been complaining of repeatedly.
Audit and Risk chair refuses ultra vires to allow any discussion or debate on 40 page pivotal financial report confirmed agenda item which I had previously indicated in the meeting I wanted to speak to.
Cr. Calvert also wished to speak to it but the Chair abused her authority and shut it down. This along with a history of other A&R suppression was the cause of this loudness and my final exit from this committee.

These are all real issues with stories you should be interested in Mr Morris, but instead you bypass the reasons “Whatever the reasons for your frustration…” miss the important issues and ask 5 inane questions about my behaviour.
These are the actions of a gossip columnist, not a reporter.

Cr. Vandervis

{Draft text deleted at Cr Vandervis’s request. -Eds}

On 24/04/15 4:11 PM, “Chris Morris” wrote:

Lee,

I’m following up on this morning’s story. I tried to include as much as I could of your comments, where they addressed the issues being raised in the conduct committee’s report, but I’d still far rather talk through it all point by point, in detail.

Failing that, can you respond to these specific questions about where to from here:

1. Whatever the reasons for your frustration, do you now accept that your behaviour (as reported by witnesses in the report) was bullying, aggressive and intimidating and included swearing (which you initially denied)?

2. If you do, what changes (if any) will you make to modify your behaviour, other than the previously mentioned plan to raise concerns with council staff only by email?

3. What is your reaction to the comments by Richard Thomson, who said your approach was counter-productive and your talents wasted?

4. What is your reaction to the comments by Cr Thomson and others suggesting a genuine apology might be the best way forward? Will you consider this, or do you plan to offer one at Tuesday’s meeting or at any other time, or do you maintain that you have already offered one?

5. Do you think your behaviour (as described in 1) is in any way appropriate for an elected public representative? If not, and given the limited sanctions available to the council, will you be considering your position, including whether or not you should resign?

Chris.

SICK QUOTES
—care of whatifdunedin

Richard Thomson Facebook - ODT 24.4.15 Cr Thomson on Cr Vandervis 1Mayor Cull on Cr Vandervis - ODT 24.4.15

ODT articles:
Penalty urged for Vandervis
Voting rights loss ‘punishing wrong people’

█ For more, enter the terms *vandervis*, *cull*, *bidrose*, *citifleet* or *deloitte* in the search box at right.

Posted by Elizabeth Kerr

33 Comments

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

DCC re Dr Bidrose’s time as most senior Citifleet Manager

From: Sandy Graham
Sent: ‎Friday‎, ‎24‎ ‎April‎ ‎2015 ‎4‎:‎16‎ ‎p.m.
To: Lee Vandervis
Cc: Sue Bidrose, Elizabeth Kerr
Subject: RE: Overestimation of Dr. Bidrose’s time as most senior Citifleet Manager

Dear Lee

Please find attached the information you have requested about the responsibilities of Dr Bidrose.
It took a few days to collate as I wanted to ensure accuracy.

The information will also be forwarded to all Councillors for their information.

Regards
Sandy

[click to enlarge]

Sue Bidrose - timeline of managerial responsibilities 2010 - 2013 [screenshot]

█ Download: SUE BIDROSE RESPONSIBILITIES (PDF, 16 KB)

————

From: Sandy Graham
Sent: Friday, 17 April 2015 8:45 p.m.
To: Lee Vandervis
Cc: Sandy Graham; Sue Bidrose; Elizabeth Kerr
Subject: Re: Overestimation of Dr. Bidrose’s time as most senior Citifleet Manager

Dear Lee

I will get this information on my return to work on Monday.

Regards
Sandy

Group Manager Corporate Services
Dunedin City Council

————

On 17/04/2015, at 4:12 pm, Lee Vandervis wrote:

Dear Sandy and Sue,

Thank you for correcting my overestimation of the time Sue was senior manager of Citifleet prior to becoming DCC CEO.
I sincerely apologise for my inaccuracy.
To avoid future inaccuracy on my part, can you please clarify which departments Sue was in a managerial position over and for what periods in the years Sue was at the DCC prior to be coming our CEO.

Kind regards,
Lee

The overestimation was made in Cr Vandervis’s open letter found at the highlighted link below (15.4.15). -Eds

█ For more, enter the terms *vandervis*, *cull*, *bidrose*, *citifleet* or *deloitte* in the search box at right.

Posted by Elizabeth Kerr

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DCC severely FAILS councillor #naturaljustice #contempt

Updated post Sun, 26 Apr 2015 at 2:45 p.m.

Meeting of the Dunedin City Council on Tuesday, 28 April 2015 at 1:00 PM, Council Chamber, Municipal Chambers

Agenda – Council – 28/04/2015 (PDF, 96.6 KB)

Report – Council – 28/04/2015 (PDF, 172.7 KB)
Conduct Committee Report to Council

Received from Lee Vandervis
Thu, 23 Apr 2015 at 6:22 p.m.

█ Message: Your readers may be interested in this email exchange below.

—— Forwarded Message
From: Lee Vandervis
Date: Thu, 23 Apr 2015 15:58:40 +1300
To: Sandy Graham
Cc: Stuart Anderson [University of Otago], Andrew Noone, Andrew Whiley, Chris Staynes, Doug Hall, Hilary Calvert, John Bezett, Jinty MacTavish, Kate Wilson, Mayor Cull, Mike Lord, Neville Peat, Richard Thomson, David Benson-Pope, Aaron Hawkins, Sue Bidrose
Conversation: Code of Conduct public announcement
Subject: Re: Code of Conduct public announcement

This does not answer my governance question Ms Graham, as to why I was not advised that this was coming out.
There has been nothing standard about any of this Code of Conduct process.
Cr. Lee Vandervis

————

On 23/04/15 11:48 AM, “Sandy Graham” wrote:

Dear Councillor

The report formed part of the public agenda that was delivered to all Councillors last night in advance of Tuesday’s meeting.

The media receive a copy of the agenda at the same time as per our standard process.

Regards
Sandy

————

On 23/04/2015, at 10:34 am, Lee Vandervis wrote:

Code of Conduct public announcement
Dear [as in expensive] all,

I have been rung by media this morning wanting my comment on the outcome of the Code of Conduct claims against me.

Nobody has had the decency to inform me of what these outcomes might have been, despite the exceptionally long time the production of these outcomes has taken.

Can anyone advise me why the media seem to have this information well in advance of me, or is it just standard process for a show ‘trial’, in which I have not even been allowed to see 2/3 of the ‘evidence’.

Cr. Lee Vandervis

—— End of Forwarded Message

Received from Lee Vandervis
Thu‎, ‎23‎ ‎Apr‎ ‎2015 at ‎7:12‎ ‎p.m.

Re: Code of Conduct decision

I have sent my response to today’s Code of Conduct decision just sprung on me to you since I can not rely on ODT reporter Chris Morris to accurately present it.
Fortunately most interested parties read your blog anyway.

I am innocent of the Code of Conduct claim that I have misled the non-pubic Audit and Risk committee regarding the Citifleet fraud investigations.
The guilt lies with those DCC staff and some elected representatives who for years failed to act on my Citifleet fraud and other whistle-blowing allegations despite the DCC records evidence available to them. Some of this evidence has recently emerged in the Deloitte reports which I continue to seek.
If my allegations and evidence had been appropriately acted on, many matters of grave concern would have been dealt with when the record shows I raised them as early as 2011.
DCC staff refusal even now to let me see the full main unredacted Deloitte Citifleet Fraud report, or the Deloitte staff report, or the digitised relevant DCC records evidence, further increases my suspicion of a cover-up.
Questions regarding the role of new DCC CEO Bidrose as senior manager of Citifleet prior to becoming CEO, and of what she knew of my allegations in the years prior are some of the many questions yet to be answered.

What has been shown is that the Police investigation was certainly very narrowed up until my complaint of this narrowing to CEO Bidrose and the Police investigating officer, some six months after the Citifleet manager’s sudden death. Subsequent claims by Area Commander Jason Guthrie that the investigation has been widened have not been supported by Police following up on the evidence I tried to interest them in: the Citifleet maintenance contract fraud, DCC credit card use fraud, etc. or by any convictions, or other widened investigation action that has been visible to me.

The two loudness claims, evidence of which I have not been allowed to see and therefore defend, both come back to the shutting down of the wider DCC contract fraud debate, and the resulting multiple abuses of Code of Conduct process to try and shut me down.

The four prescribed penalties suggested in the Code of Conduct report are:

1 -Censure
– the Mayor has already done this on pubic and non-public occasions.

2 -Request Apology
– I already apologised for loudness at the time

3 -Suspension of voting right only in Committees, not Council
– abuse of my representative function, but a wet bus ticket given my continuing right to debate

4 -Dismissal from positions of Deputy Mayor, Chairperson or deputy chairperson of a committee
– Mayor Cull already did this at the beginning of the triennium.

The Mayor’s recommended members of the Code of Conduct Committee have run an expensive Kangaroo Court with only my loss of two months committee voting rights to be recommended. It will be interesting to see if enough Councillors will vote for that.
It will also be interesting to see what the voting public think – do they want wide investigation and full disclosure or do they just prefer good news stories from the DCC.

Kind regards,
Cr. Vandervis

Received from Lee Vandervis
Thu, 23 Apr 2015 at 7:17 p.m.

—— Forwarded Message
From: Lee Vandervis
Date: Thu, 23 Apr 2015 19:15:55 +1300
To: Chris Morris [ODT], Nicholas George S Smith [ODT]
Conversation: Code of conduct report
Subject: Re: Code of conduct report

Chris,

I have sent my response to the What If site, as I can not rely on you to accurately present it.

I was out last night, and the first I heard of the Code of Conduct decision today was radio media wanting comment.

Cheers,
Lee

————

On 23/04/15 3:34 PM, “Chris Morris” [ODT] wrote:

Lee,

I’ve sent you a text with a very basic outline of the key findings. Happy to hear from you at any time today or tonight for a detailed response once you’ve read the report in full. I understand it was hand-delivered to your house last night.

Cheers,

Chris.

—— End of Forwarded Message

Related Posts and Comments:
15.4.15 Cr Lee Vandervis: Open Letter to the DCC Code of Conduct Committee
18.3.15 Lee Vandervis releases emails #Citifleet investigation
17.3.15 DCC whistleblowing —what is open government ?
13.3.15 Cr Lee Vandervis: LGOIMA…. Citifleet Investigation – Deloitte Report
26.2.15 DCC and the day(s) of Madness
23.2.15 Lee Vandervis on DCC Code of Conduct process #emails #naturaljustice
15.2.15 DCC…. ‘CEO Bidrose confirms no Vandervis complaint with a hug’
6.2.15 Cr Lee Vandervis apology
5.1.15 DCC: Chairman denies true and correct Council record
19.12.14 Vandervis: Deloitte and Police Citifleet investigations
19.12.14 DCC Citifleet by email . . . . woops! (another timeline proof)
18.12.14 DCC: Deloitte report released on Citifleet #whitewash
24.10.14 DCC Citifleet, more revelations….
21.10.14 DCC Citifleet, undetectable….
1.9.14 DCC Fraud: Further official information in reply to Cr Vandervis
30.8.14 DCC Fraud: Cr Vandervis states urgent need for facts….

█ For more, enter the terms *vandervis*, *cull*, *bidrose*, *citifleet* or *deloitte* in the search box at right.

Posted by Elizabeth Kerr

35 Comments

Filed under Business, Citifleet, DCC, Democracy, Economics, Name, New Zealand, OAG, People, Police, Politics, Project management, Property, SFO

Cr Lee Vandervis: Open Letter to the DCC Code of Conduct Committee

Updated post Fri, 17 Apr 2015 at 6:45 p.m.
Correspondence from Lee Vandervis in reply to Sandy Graham and Sue Bidrose; and forwarded note to Code of Conduct Committee – entered below last update to post.

Updated post Fri, 17 Apr 2015 at 1:46 p.m.
Correction received by email from Sandy Graham, DCC General Manager Corporate Services entered below Open Letter.

Received Wed, 15 Apr 2015 at 11:24 a.m.

█ Message: I have forwarded this Open Letter to the DCC Code of Conduct Committee in an attempt to debunk the many misleading claims around the DCC Citifleet fraud investigations.
I am happy to provide supporting email evidence for anything stated below that your readers may find questionable.
Cr. Vandervis

—— Forwarded Message
From: Lee Vandervis
Date: Sun, 12 Apr 2015 22:48:00 +1300
To: John Bezett, David Benson-Pope, Stuart Anderson
Conversation: OPEN LETTER TO THE DCC CODE OF CONDUCT COMMITTEE
Subject: OPEN LETTER TO THE DCC CODE OF CONDUCT COMMITTEE

OPEN LETTER TO THE DCC CODE OF CONDUCT COMMITTEE

Dear Sirs,

Three separate Code of Conduct issues have been raised against me this year following my Code of Conduct complaint against Mayor Cull which Deputy Mayor Staynes decided, without giving his reasons to me, not to refer to you.
There has been an uncomfortable mix of assertions and facts in the limited evidence that has been presented regarding the claim that I misled over Citifleet investigations, which I would like you to consider.

Provable facts include my long mostly non-public attempts to clean out dysfunctional management at the DCC since I was first elected in 2004. Partial success keeps me going.
I never expected whistle blowing to be popular, but neither did I expect such personal attacks for my trouble on behalf of our ratepayers.

Regarding the Citifleet frauds, my records show my many 2011 complaints to senior DCC management of: inappropriate DCC vehicle disposal, Citifleet manager selling vehicles to himself, credit card fraud, vehicle maintenance tender fraud, and tyre fraud are all well documented.
What is equally clear is that nothing was done to seriously investigate these complaints which all turned out to have substance until almost 3 years later when the Citifleet manager’s ‘sudden death’ resulted in new CEO Sue Bidrose ordering the DCC accountants Deloittes to investigate.
Dr. Sue Bidrose had been the most senior manager in charge of Citifleet and many other DCC departments prior to becoming CEO. It is my view that whatever evidence she might have given is not only inadmissible in terms of process because I had not been advised in advance of her evidence or her intention to give evidence, but that Dr. Bidrose is compromised because of her years as the senior manager of Citifleet prior to the Citifleet manager’s sudden death.

In the month following the Citifleet manager’s sudden death I repeatedly urged CEO Bidrose and head of Governance Sandy Graham to resist the temptation to minimize the frauds’ fallout by narrowing the investigation or by blaming it all on the dead manager. Although later admitting that the initial request for investigation related mainly to missing vehicles, CEO Bidrose gave me assurances from the beginning that Deloittes and then later Police would conduct a wide investigation. This provably did not happen with the Police, and I have no evidence other than yet another management assurance that it has or will really happen.

CEO Bidrose also gave me assurances from the beginning of the investigations that if I could provide hard evidence of DCC staff stealing even one dollar she would ensure prosecutions followed. Unfortunately the DCC records evidence which I have sought to complete hard evidence cases against both DCC staff and those involved outside the DCC has been denied me by CEO Bidrose, despite my making LGOIMA requests for it last year, namely: both the full unredacted Deloittes report, the Deloittes staff report, and the digitised evidential files which Deloittes collated for their investigation.
In that month following the Citifleet manager’s death I became very concerned when CEO Bidrose did not achieve a proper Police investigation apparently ‘because Police lacked the resources’, and that only the accounting investigation by Deloittes was to take place. I was relieved that Deloittes’ investigator Kyle Cameron seemed to have a good grasp of the many Citifleet complaints that had been made to me during his detailed interview of me, and that subsequent to the Deloitte reports Police were to investigate fully after all.
My concerns about Police having a belated investigation three months later are recorded, as are my concerns that Police requested that no public statements be made about Citifleet while their belated investigation was in progress. This despite Mayoral and CEO public statements that the Citifleet frauds were all the work of one now dead man.

I have highlighted with evidence to the SFO and CEO Bidrose the extreme slowness of a previous Dunedin Police investigation into DCC Landfill frauds that took more than three years before one individual was finally prosecuted, and I have written to the Serious Fraud Office unsuccessfully urging them to have an outsider’s independent investigation into the Citifleet frauds because local Police seem unable to do the job. CEO Bidrose claimed that the SFO had been contacted re the Citifleet frauds, but curiously the SFO’s Sara Morris said to me that no request from the DCC to investigate had been received by the SFO prior to my request for them to investigate.

My worst fears for the hoped for DCC investigation were realised when the Police investigating officer Detective Mathew Preece interviewed me at my home six months after the Citifleet manager’s tragic death, in what he described as the last week of his investigation. Detective Preece said that the scope of his investigation was only the missing vehicles and that he had already interviewed all other people he intended to interview. He said that all those he interviewed regarding missing vehicles offered the defence that they thought the deceased Citifleet manager was authorised to dispose of the vehicles in the way that he did, and that subsequently there would be no prosecutions of anybody.
I told Detective Preece that I had received many Citifleet complaints for years regarding not only vehicle disposal but fraudulent Citifleet credit card use, tyre supply, fuel supply, and fraudulent Citifleet maintenance contracts and that I had a motor trade business owner and others prepared to give evidence on these issues.
That night I wrote the following email to CEO Bidrose, Head of Governance Sandy Graham and to Detective Preece voicing my concern at the very limited scope of the investigation, and the investigating officer’s understanding that he could not investigate anything else because he did not have any wider complaint from the DCC to act on.

From: Lee Vandervis
Date: Tue, 11 Nov 2014 22:57:31 +1300
To: Sue Bidrose, Sandy Graham, “PREECE, Matthew”
Conversation: Police Citifleet Investigation
Subject: Police Citifleet Investigation

Dear Sue,

An hour and a half spent with Detective Matthew Preece and another Policeman called Regan has left me with deep concerns regarding the Police Citifleet investigation.
Mr Preece has informed me that the scope of his investigation has been limited by the complaint the DCC has made to the Police, and that this complaint only concerns missing or inappropriately sold DCC vehicles.

Mr Preece says that because Police have not had a complaint from you or the DCC regarding;
– fraudulent Citifleet tender processes,
– fraudulent Citifleet tyre supply contracts,
– fraudulent Citifleet maintenance contracts
– fraudulent use of DCC Citifleet vehicle fuel
– fraudulent DCC accounting of Citifleet credit cards and other payment methods used and Citifleet managerial oversight
– and fraudulent use and conversion of DCC Citifleet vehicles [eg the conversion of a DCC-owned vehicle by Mrs Bachop]

and that consequently none of these fraud areas is being investigated!

Mr Preece did say that if you as CEO were to request that he broaden his investigation to include these other areas and not just the missing cars, that he would broaden his enquiry to include them. He insisted that he would have to have a broadened complaint from you as CEO for this to happen, and implied that a complaint from me as a City Councillor would not be enough to act on.

I have highlighted to Preece and Regan the urgent need to use the Citifleet manager’s tragic death to investigate and prosecute all Citifleet fraud areas, as a failure to do so will result in the loss of an unprecedented opportunity to clean out the culture of entitlement at Citifleet and in other DCC departments.

Can you please with urgency broaden the DCC complaint to include the 6 areas of potential Citifleet fraud listed above, so that Mr Reece can broaden his enquiry to include them.

Can you please also now with urgency, forward to me all instructions to Deloitte regarding the Citifleet investigation as previously requested in my email of 26/10/14 as below.

Is it possible to meet with you at any time tomorrow at your convenience to learn whether you have broadened the DCC Police complaint or not?

Kind regards,
Cr. Lee Vandervis

From: Lee Vandervis
Date: Sun, 26 Oct 2014 18:23:41 +1300
To: Sue Bidrose, Sandy Graham
Conversation: LGOIMA requests
Subject: LGOIMA requests

Hi Sue,

Further to my verbal requests of a week or two ago please forward copies of all original correspondence and or other direction given to Deloittes in regard to their investigation of Citifleet.
I wish to have the original brief stating the terms of reference, the subsequent brief where the investigation needed to be extended, and any other direction written or otherwise given to Deloittes regarding the Citifleet investigation.

I am deeply disturbed by what I have seen in parts of the investigation conclusions appearing without covering page or any details identifying them as parts of the Deloitte findings in non-public parts of the Audit and Risk subcommittee meetings.

I note a severe slowing on responses to my recent LGOIMA requests, and hope this has been a temporary frustration.

Kind regards,
Cr. Lee Vandervis

Subsequent email from Police Area Commander Guthrie claimed as follows:

From: GUTHRIE, Jason [mailto:Jason.Guthrie@police.govt.nz]
Sent: Saturday, 15 November 2014 10:48 a.m.
To: Sue Bidrose
Cc: COSTER, Andrew; INGLIS, Malcolm
Subject: RE: Investigation Update

Hi Sue.

I can confirm that DCC staff did not (and have not) in any way attempted to restrict, curtail, or limit the scope of the Police investigation stemming from the Deloitte report either at the 1 September meeting or at any other time.

At no stage has any undue influence been exerted by DCC staff on Police as to what should be investigated and what should not be investigated.

At the 1 September meeting it was agreed that the focus of the enquiry would be limited to activity around the 152 vehicles as this was considered to be the most likely aspect to potentially lead to a criminal prosecution.

To avoid any confusion, from the outset the Dunedin City Council has been clear in it’s desire that Police investigate matters arising from the Deloitte report independently, fully, and thoroughly as Police sees fit. The DCC has also been very clear in it’s desire that if any individual(s) are identified as being involved in criminal activity linked to the matters within the Deloitte report that those people be held accountable for that criminal activity.

I hope this clarifies the situation.

If you have any further questions please do not hesitate to contact me directly.

regards Jason.

Inspector Jason Guthrie
Area Commander | Dunedin Clutha Waitaki | New Zealand Police

Dunedin Central Police Station, 25 Great King St, Private Bag 1924, Dunedin, www. police.govt.nz
Safer Communities Together

Area Commander Guthrie’s response above says that “DCC staff did not (and have not) in any way attempted to restrict…the Police investigation”, but then goes on to say that …”it was agreed that the focus of the enquiry would be limited to activity around the 152 vehicles…”!

Commander Guthrie’s subsequent claim that the Police investigation would be widened has thus far failed to result in my being contacted to provide the further evidence I have already tried to give Detective Preece regarding credit card fraud, vehicle maintenance contract fraud etc. The lack of any prosecutions after so much time adds to my concern.
This seems to me to be another example of management claiming one thing but investigating officers doing another.

I am yet to be convinced either by Police taking an interest in my offered evidence or by any Citifleet related Police prosecutions that a serious Police investigation has really been effectively widened despite stated intention to widen, even at this now very late stage. I do not dispute Police management intentions, but see them as quite different to actual Police investigating actions, which seem to me to be more interested in sidelining me as a critic of their investigation than getting to the bottom of Citifleet fraud.

Regarding the two other loudness Code of Conduct claimed complaints, I do not recognise them and I remain far from content that CEO Bidrose and Cr McTavish at least have made ‘loudness’ statements to your Code of Conduct Committee [Cr. McTavish read hers] but not provided these statements to me in advance so that I could defend them. I see these loudness complaints as politically motivated attempts to ambush me outside of proper Code of Conduct process, and I do not accept that they can have any force.
The two staff that might have had reason to complain of my loudness, namely CEO Bidrose and Sandy Graham, have made no complaint and both have independently assured me that they did not make any complaint, CEO Bidrose with a hug, and Sandy Graham with an eye-roll.

I particularly resent the swearing allegation that no Councillor has admitted to claiming, despite Mayor Cull’s publicly repeatedly saying in the ODT that my swearing had been claimed by a Councillor. I note the irony that when Code of Conduct complaining Cr. Thomson left an earlier Audit and Risk meeting in a huff using the ‘F word’, that no complaint was forthcoming from anybody.

I take this opportunity to register my complaints regarding the running of this Conduct hearing.
1 – That the loudness complaints should never have been recognised as complying by the Committee for want of evidence.
2 – That I was not permitted to record the public part of the hearing in which I spoke, but that Media were allowed to take short-hand and thus given the opportunity to misquote me with impunity.
3 – That no reason was given when asked for, for not being able to record the pubic hearing.
4 – That parts of the hearing evidence were in public, but that apparently some evidence parts were non-public.
5 – that I have been given an extract only from your draft report, on grey paper marked confidential, ensuring that I can not as a result comment on it. The claim that “This is to ensure that the principles of natural justice and due process are observed.” is absurd, given that natural justice and due process have been absent throughout.

Looking forward to having this wasteful exercise in enmity drawn to a conclusion.
Cr. Lee Vandervis

—— End of Forwarded Message

[ends]

*Email addresses, phone numbers and web links removed. The company referred to above is “Deloitte”. The councillor surname is “MacTavish”. -Eds

CORRECTION

From: Sandy Graham [DCC]
Sent: ‎Friday‎, ‎17‎ ‎April‎ ‎2015 ‎1‎:‎31‎ ‎p.m.
To: Elizabeth Kerr [What if? Dunedin]
Subject: Correction

Dear Elizabeth

As discussed, I wish to correct a statement made by Cr Vandervis in his “Open letter to the Conduct Committee” which is published on your website.

The statement that the CEO Sue Bidrose had “years as the senior manager of Citifleet prior to the Citifleet manager’s sudden death” is incorrect. Sue had Regulatory Services (which included Citifleet, Building Control, Environmental Health, Parking Services) added to her General Manager portfolio for less than five months in 2013, immediately prior to being appointed CEO. This is clearly not “years” and needs correcting. Cr Vandervis’ assertions that Sue’s evidence to the Conduct Committee was therefore compromised is not supported by the facts.

Regards

Sandy

Sandy Graham
Group Manager Corporate Services
Dunedin City Council

—— Forwarded Message
From: Lee Vandervis
Sent: ‎Friday‎, ‎17‎ ‎April‎ ‎2015 ‎5‎:‎01‎ ‎p.m.
To: John Bezett, David Benson-Pope, Stuart Anderson
Subject: FW: Overestimation of Dr. Bidrose’s time as most senior Citifleet

Dear Code of Conduct Committee,

Please accept my apology for ignorantly overstating the length of time Dr Bidrose was most senior manager of Citifleet prior to becoming our CEO.
‘Years’ should read ‘5 months as the senior manager of Citifleet and then 6 months as CEO’ prior to the Citifleet manager’s sudden death.

Kind regards,
Cr Lee Vandervis

—— Forwarded Message
From: Lee Vandervis
Date: Fri, 17 Apr 2015 16:12:33 +1300
To: Sandy Graham, Sue Bidrose
Cc: Elizabeth Kerr [What if? Dunedin]
Conversation: Overestimation of Dr. Bidrose’s time as most senior Citifleet Manager
Subject: Overestimation of Dr. Bidrose’s time as most senior Citifleet Manager

Dear Sandy and Sue,

Thank you for correcting my overestimation of the time Sue was senior manager of Citifleet prior to becoming DCC CEO.
I sincerely apologise for my inaccuracy.
To avoid future inaccuracy on my part, can you please clarify which departments Sue was in a managerial position over and for what periods in the years Sue was at the DCC prior to be coming our CEO.

Kind regards,
Lee

—— End of Forwarded Message
—— End of Forwarded Message

█ For more, enter the terms *vandervis*, *cull*, *bidrose*, *citifleet* or *deloitte* in the search box at right.

Posted by Elizabeth Kerr

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Filed under Citifleet, DCC, Democracy, Name, New Zealand, People, Police, Politics

DIA regulates what? Not white collar crime, not with govt looking on!

This one’s for Sue Ingram, DIA.

Charity expert Michael Gousmett has labelled the failure to pursue the investigation a cop-out. “To brush it under the carpet, [Internal Affairs] is basically abdicating their responsibility,” Gousmett said. “They tend to pick on the low-hanging fruit and you would have to question what the real purpose of the regulator is.”

### NZ Herald Online 5:00 AM Sunday Dec 14, 2014
Glenn charity probe dumped
By Bevan Hurley – chief reporter
Internal Affairs has abandoned an investigation into alleged irregular payments for a thoroughbred racehorse made by Sir Owen Glenn’s charity. After being under investigation for 18 months, the Glenn Family Foundation Charitable Trust charity was voluntarily deregistered on December 1. The charities regulator launched an investigation after emails appeared to show payments from the Glenn Family Foundation to a bloodstock company and Sir Owen’s personal bank account.
The alleged irregular payments surfaced in an email from former trust chief executive Peter McGlashan to Sir Owen, in which he wrote “large international transfer payments you requested be made to Bloodstocks Ltd and to your account in Sydney”. McGlashan’s email stated the payments “are not typical” of a charitable trust and will “no doubt need explaining” when the charity’s accounts were being prepared.
Charities service general manager Lesa Kalapu defended the length of the investigation, and lack of a resolution, saying there had been delays because Sir Owen lived overseas. “Purely because of the scale, and the international aspect to it, there were delays.” She said there was a “fair level of co-operation”.
Sir Owen told the Herald on Sunday negative media coverage had forced him to leave New Zealand.
The Charities Service came under the Department of Internal Affairs in July 2012.
Read more

DIA Charities Services

DIA Gambling compliance investigations and audits

A lot has happened, a lot of investigation files have been deliberately buried.
The Department of Internal Affairs (DIA) has been deficient, dissembling and politically influenced to not pursue prosecution of innumerable persons — recognised pillars of society, professional trustees, lawyers and accountants amongst them — known to be involved in multimillion-dollar white collar crime.
A public disgrace, no less for the successive Ministers concerned.
But don’t worry, no-one is naïve in saying this.

A short reflection, by topics 2012 – 2014 . . . .

Related Posts and Comments:
27.11.14 Sport Otago’s Brimble and ORFU’s Kinley never give up —ugly paperwork exists boys !!
19.9.14 Chief Ombudsman Beverley Wakem to launch post-election inquiry
22.8.14 DCC: Deloitte report referred to the police #Citifleet
5.8.14 Gambling Commission shuts down racing’s Bluegrass pokie trust
27.7.14 NZ journalism, Ean Higgins got it in one #knowwhatwethinkofGerry
13.7.14 Great quote: men
13.5.14 Stuff: Colin Espiner usefully defines Corruption
31.3.14 Audit services to (paying) local bodies #FAIL ● AuditNZ ● OAG ● LynProvost
20.3.14 Delta: Report from Office of the Auditor-General
19.3.14 ORFU: Black-tie dinner, theft or fraud?
15.3.14 Mayoral DISGRACE: DCC won’t ask ORFU to repay $480K bailout
14.3.14 ORFU flush to pay creditors
20.2.14 National-led government rejects state sector reform
15.2.14 Corruption: US mirror to ministerial meddling in DIA business
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
8.12.13 SFO budget slashed, how useful were they ?! #politicalinterference
7.12.13 Corruption in NZ Sport: Where has John Key PM been hiding ???
15.10.13 NZRU, ORFU blasphemies etc
11.10.13 New Zealand: Pokie trusts same everywhere #pokierorts
10.10.13 Whistleblowers’ message heard ??! #OtagoRacingClub #pokierorts
26.8.13 New Zealand rorts and sports —dependence on gambling and white collar crime
1.8.13 Politicians keeping DIA/SFO quiet on ORFU and TTCF #pokierorts
15.7.13 Leave Otago white collar criminals ALONE, and other unfairness
29.6.13 Audit NZ and OAG clean bill of health —Suspicious!
7.6.13 Peter Dunne, undone
28.5.13 Carisbrook: Auditor-General #fails Dunedin residents and ratepayers
31.3.13 DIA and Office of the Auditor General stuff up bigtime #pokierorts
15.3.13 ORFU should be subject to full forensic investigation
21.2.13 DIA, SFO investigation #pokierorts
11.2.13 Recognising whistleblowers
7.2.13 DIA not releasing report #ORFU #NZRU #pokierorts
24.1.13 Pike River, Department of Internal Affairs #skippingthebusiness

30.12.12 Internal Affairs is a whole other planet #whitecollarcrime #DIArorts
18.11.12 Martin Legge: DIA audit criticism #pokierorts #coverup
13.11.12 Martin Legge replies to Sunday Star-Times story #DIA #coverup
11.11.12 Department of Internal Affairs #pokierorts #coverup
26.10.12 Department of Internal Affairs (DIA) – CULPABLE #pokierorts
3.10.12 DScene: Russell Garbutt seeks DIA file to Crown Law #pokierorts
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
24.7.14 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
5.6.12 The Gambling (Gambling Harm Reduction) Amendment Bill
● 4.6.12 Questions: ORFU and the Centre of Excellence for Amateur Sport
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]
2.5.12 Ratepayers pay for ORFU black-tie dinner at stadium
29.4.12 Department of Internal Affairs, the gambling authority
22.4.12 DIA, OAG, TTCF and Otago Rugby swim below the line
23.3.12 ORFU position

● [3.3.10 Yep, Kereyn Smith thinks like ‘stadium boys’ – see more]

Posted by Elizabeth Kerr

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Filed under Business, Carisbrook, Citifleet, Construction, CST, DCC, DCHL, DCTL, Delta, Democracy, DVL, DVML, Economics, Geography, Hot air, Media, Name, New Zealand, NZRU, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums

Gambling Commission shuts down racing’s Bluegrass pokie trust

According to Barry Stewart on Channel 39 there’s a story in tomorrow’s ODT about: “A pokie trust established to fund the racing industry closed down.”

Why wait?

The Decision – Gambling Commission

Here’s the Department of Internal Affairs (DIA) press release
(in which the devils at DIA, racing and pokie industry make Mike O’Brien the fall guy):

Pokie trust obtained licence by deception – Gambling Commission

5 August 2014

The Department of Internal Affairs has welcomed a decision by the Gambling Commission which has found that a Blenheim based gaming machine society, Bluegrass Holdings Limited, obtained its licence to operate pokie machines by deception and that a decision to cancel its Class 4 operator’s licence was warranted. The Commission’s decision, published today, 5 August 2014, comes after a two year protracted and complicated process between Bluegrass Holdings and the Department.

Internal Affairs’ Acting Director of Gambling Compliance, Raj Krishnan, says action was taken to cancel Bluegrass’s licence in July 2012 because of concerns about the suitability of Bluegrass’s operations including the actions of particular key individuals.

“Bluegrass’s deliberate and repeated efforts to deceive the Secretary were intolerable. There is no room for such behaviour in the gambling sector and we are pleased that those involved will now need to move on. We put a lot of effort into this case as we believe ensuring the integrity of the gambling sector is of great importance. Gaming machine societies exist to distribute funds for the community. Millions of dollars are involved and the utmost integrity is required,” says Mr Krishnan.

The Gambling Commission found that Bluegrass provided false and misleading information to Internal Affairs about its funding, those involved in the society and the role of Blenheim man Mike O’Brien in particular. Mike O’Brien is well-known in the harness racing community and is the son of Patrick O’Brien, former chairman of Harness Racing New Zealand and former chair of Bluegrass, which primarily provided grant money to the racing sector. The Commission says documentary evidence indicates Mike O’Brien “covertly exercised influence over the society’s grants and operation….” (Paragraph 66)

The Commission’s decision notes that the efforts to deceive the Department were repeated and took place from the time of Bluegrass’s initial application, through the investigation process and continued during the course of formal proceedings. The deceit stemmed from Bluegrass’s failure to advise the true source of funding to establish the society as well as the role of Mike O’Brien.

“It is unlikely that the Secretary [of Internal Affairs] would have granted the licence application if he had known either that the money had been advanced by Mike O’Brien or that its ultimate source was three racing clubs. The Appellant obtained its licence by providing materially false and misleading information to the Secretary.” (Paragraph 82)

The Commission also found there was evidence that Bluegrass was open to being influenced by its venue operators, contrary to the Gambling Act 2003 and it believed that allowing venue operators to exercise influence over grants was necessary to its survival. (Paragraph 65)

The Commission found the evidence of Bluegrass’s present chair, Blenheim electrician, Peter Gurr not to be sufficiently credible and compelling to remove the doubts as to Bluegrass’s suitability. The Commission says the nature of the deception means it is appropriate for Bluegrass’s licence to be cancelled to “deter other applicants from similar attempts in the future”.

“The circumstances of the case illustrate that detection of this sort of deception is difficult and it is important therefore that the consequences following detection are sufficiently serious to prevent the operation of licensing regime being undermined by the provision of false or misleading information for the advantage of applicants.” (Paragraph 89)

Mr Krishnan says: “This type of behaviour detracts from the good work of many others who distribute pokie grants for the benefit of the community. We’d encourage operators to take close note of this decision and let it serve as a benchmark as to what is expected from them. This type of deceptive conduct and efforts to mislead are also captured in investigations presently being conducted by Internal Affairs, the Serious Fraud Office and Police.”

Bluegrass Holdings Ltd owns 144 gaming machines (pokies) at eight pubs around New Zealand.

“Internal Affairs is currently assessing the behaviour of the people who are responsible for the gaming machines at those venues. We have a duty to the wider community to ensure that venue operators are ethical and uphold the law. Whether those pubs will be allowed to continue operating pokies will depend on whether we are satisfied that all the relevant criteria are met,” says Mr Krishnan.

In accordance with the Commission’s decision the licence cancellation will come into effect on 18 August 2014.

Questions and Answers

1. What happens on 18 August to the pokie machines owned by Bluegrass?
Once Bluegrass’s licence to operate is cancelled on 18 August all its machines are turned off. We’d expect the machines to be sold possibly to another gaming machine society. (See Q5 for further details)

2. Doesn’t this action mean less money will go into the community?
There is no evidence to suggest that overall gambling profits will decrease if the venues in question cease to offer gambling. Those who gamble at these venues are likely to simply gamble elsewhere if the venues lose their licences.

3. What happens to the money already collected from people gambling on the machines?
The Gambling Act (2003) specifies that once a society’s licence is cancelled the remaining net proceeds from its Class 4 gambling must be distributed to authorised purposes in the community within 20 working days, unless a further period is agreed to by the Secretary (for Internal Affairs). Internal Affairs will be working with Bluegrass to ensure the correct distribution takes place.

4. What happens to the organisations which received money from Bluegrass last year?
No organisations which have had their funding applications already accepted by Bluegrass should lose out. Bluegrass was set up to primarily distribute funds to the racing sector. There is nothing to stop the racing clubs (or other community organisations) that received funds from Bluegrass from applying for pokie grants from other gaming machine societies, which are the organisations responsible for distributing the proceeds from gaming machines to the community.

5. What happens to the eight pubs which have Bluegrass machines? Can they transfer to another society?
Yes they can, however this requires a fresh licence application to be made to the Department for each venue, and we will assess each application on a case by case basis. We will assess in detail both the behaviour of the venues and the history of compliance of the societies applying to take the venues on. We have a duty to the wider community to ensure that the operators in the gambling sector are ethical and uphold the law. Each time the Secretary (of Internal Affairs) makes an approval decision in respect of an application by a society to take on a new venue, he must be satisfied of both the venue’s ability and the society’s ability to operate in a compliant fashion. We will not grant a venue application until we have worked through the enquiries we need to make to be sure that these venues and societies are compliant in all respects. It should be noted a recent decision by the Gambling Commission emphasises that the onus is on the applicant society to satisfy Internal Affairs that the relevant criteria are met.

6. Does the action of DIA mean that those pubs will go under?
If a venue is compliant with the law and aligns with a compliant gaming machine society, then there is no reason why is should not continue to be able to operate pokie machines. We should point out that pubs host pokie machines voluntarily, and when they do, they are only able to recover the cost associated with hosting those machines, up to a limit. The Gambling Act did not intend for pubs to make profits from hosting pokie machines. Therefore, if these venues are dependent on the money from pokies for their survival something is wrong with the underlying viability of the venue

7. Does this action mean that those involved in Bluegrass will never be able to operate in the pokie sector again?
Yes, it is our intention to ensure the integrity of a sector which generates approximately $800 million per annum in turnover. Given the large amount of funding generated by gambling the highest levels of sector integrity are vital to make sure that the community doesn’t lose out on much needed grant money, and that those in the sector, who comply and do the right thing, aren’t undermined. Our recent actions demonstrate that we will detect unlawful and dishonest behaviour, and take whatever action necessary to reduce and eliminate non-compliance.

Media contact:
Sue Ingram, Communications
Department of Internal Affairs Te Tari Taiwhenua
Direct Dial: +64 4 494 0584 | Mobile: +64 27 541 4696

[ends]

DIA Link

Related Posts and Comments:
11.10.13 New Zealand: Pokie trusts same everywhere #pokierorts
31.3.13 DIA and Office of the Auditor General stuff up bigtime #pokierorts
21.2.13 DIA, SFO investigation #pokierorts
18.11.12 Martin Legge: DIA audit criticism #pokierorts #coverup
28.7.12 Pokie fraud: ODT fails to notice own backyard
15.7.12 Martin Legge responds to media stories on Murray Acklin, TTCF and DIA

█ For more, enter the terms *dia*, *pokies*, *pokie trusts*, *orfu*, *nzru*, *gambling commission* and *ttcf* in the search box at right.

Posted by Elizabeth Kerr

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Filed under Business, Carisbrook, DCC, DVML, Economics, Geography, Highlanders, Media, Name, New Zealand, NZRU, ORFU, People, Politics, Project management, Property, Sport, Stadiums

NZ journalism, Ean Higgins got it in one #knowwhatwethinkofGerry

Come back Ean Higgins, too true — ALL IS FORGIVEN !!!!!

Ean Higgins, 29 Miners Still Missing [zimbio.com]Journalist Ean Higgins of The Australian newspaper asks a question during a media briefing [zimbio.com]

### stuff.co.nz Last updated 07:47 27/07/2014
Brownlee lashes ‘tosspot’ journalist
By Steve Kilgallon and Neil Reid
The Australian journalist who fled New Zealand after being labelled a “boorish tosspot” by National minister Gerry Brownlee for his insensitive approach to the Pike River mine disaster has declared it the finest moment of his career. Brownlee, however, has told the Sunday Star-Times that Ean Higgins remained a tosser, but had also proven himself a fantasist and an “obnoxious twerp”.
[…] Higgins’ self-congratulatory essay about his brief Pike River coverage was certainly inflammatory.

He called New Zealand “a small, meek and mild democracy” and said: “The New Zealand journalists didn’t ask any uncomfortable questions, being happy to accept whatever the police, the company and the miners’ rescue people told them . . . the Australian journalists, coming from a more robust tradition . . . did ask the tough questions”.

He describes the two groups of journalists dining separately in “the only good restaurant” in Greymouth and the Aussies deciding “we were really going to get stuck into the company and the authorities and show the Kiwis real journalism and workshopped a few really brutal questions”.
Read more

Related Posts and Comment:
1.8.13 Politicians keeping DIA/SFO quiet on ORFU and TTCF #pokierorts
7.6.13 Peter Dunne, undone
7.2.13 DIA not releasing report #ORFU #NZRU #pokierorts
24.1.13 Pike River, Department of Internal Affairs #skippingthebusiness
13.11.12 Martin Legge replies to Sunday Star-Times story #DIA #coverup

Posted by Elizabeth Kerr

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Filed under Business, Democracy, Economics, Events, Geography, Hot air, Media, Name, New Zealand, People, Pics, Politics