Some Councils/CCOs get cleanup from FRAUD and CORRUPTION #NotAll

Stephen Borlase (centre) and Murray Noone (right) at Auckland High Court [NZ Herald]

### NZ Herald Wed, 22 Feb 2017
Herald Business
Two jailed over NZ’s largest bribery case
By Matt Nippert
Two men convicted of corruption in New Zealand’s largest bribery case have been sent to prison. Former Auckland Transport manager Murray Noone, and roading contractor Projenz managing director Stephen Borlase were investigated by the Serious Fraud Office and in December found guilty on six and eight charges, respectively, of taking and giving bribes involving more than $1 million. Justice Sally Fitzgerald this morning at the High Court at Auckland jailed Borlase for five years and six months, and Noone for five years.
Read more + Video | Documents

During the eight-week trial, Crown prosecutor Brian Dickey laid out what he considered to be a “culture of corruption” in the roading department at RDC and Auckland Transport centred on the two accused. Dickey outlined hundreds of thousands of dollars in entertainment spending by Projenz on council staff, and in cross-examining Borlase claimed the arrangement had bound the pair tight.

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Posted by Elizabeth Kerr

This post is offered in the public interest.

Corruption serious threat to New Zealand #CAANZ

Anyone home at Dunedin City Council ?
[indicators only serve to show New Zealand hasn’t been properly measured and reported for corrupt practice in this and previous decades, dodgy as]

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### Stuff.co.nz Last updated 14:30, September 17 2015
CAANZ: Rising corruption a serious threat to New Zealand
By Ellen Read
Rewarding whistle-blowers and ensuring companies have anti-corruption policies are just two things needed to help fight financial corruption and protect New Zealand’s reputation.

That is according to Chartered Accountants Australia New Zealand (CAANZ), which released a trans-Tasman report Are Australia and New Zealand corrupt? in Sydney on Thursday along with a strong message that complacency is not an option.

A high level roundtable is planned to follow the launch with New Zealand represented by Serious Fraud Office director Julie Read, Financial Market Authority head of enforcement Belinda Moffat and Suzanne Snively, head of Transparency International NZ.
While New Zealand ranked a healthy second in the 2014 Transparency International Corruption Perceptions Index, it was a slip from the top place it had held for many years. Denmark now holds the top spot. Australia is ranked 11th, the second consecutive drop.

“Not only do reports indicate that rates of corruption in [Australia and New Zealand] may be rising, we are also doing more business with countries that have different ethical frameworks from our own,” CAANZ president Fred Hutchings says in the report.

Of New Zealand’s top 10 trading partners two rank poorly in the Transparency International Index – China sits in 100th place (out of 176 countries surveyed) and Thailand at number 85.
There is no measure or estimate of how much corruption costs New Zealand each year but the CAANZ report singled out recent finance company collapses and director prosecutions as costly examples.
Read more

█ Stuff: Bribery and corruption report should be ‘a wake-up call’

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### charteredaccountantsanz.com 17 September 2015
NEWS
Calls for action in fight against corruption
Australia and New Zealand risk losing their global standing in anti-corruption efforts, prompting our calls for a holistic and sustainable approach to addressing bribery and corruption in the region. Corruption is on the rise according to our latest future[inc] publication, Are Australia and New Zealand Corrupt?, with both countries increasingly trading with countries considered to be corrupt.

Research suggests bribery and corruption has increased by upwards of 80% and both Australia and New Zealand have fallen in global rankings for transparency and corruption.

Chartered Accountants ANZ CEO Lee White said that while both Australia and New Zealand have traditionally traded on reputations of honesty and integrity, this reputation is at risk if the issue isn’t addressed, and steps put in place to mitigate the threat. […] The report suggests legislation alone will not stamp out corruption, but does outline a series of recommendations which could be adopted across Australia and New Zealand. Recommendations include compulsory anti-bribery and corruption policies in NZX and ASX listing rulings, regulation to prohibit the awarding of public sector contracts for those with past convictions, and a prohibition on rewarding public sector contracts to companies without corruption policies.
Read more

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Posted by Elizabeth Kerr

Fairfax Media: Police release Citifleet investigation report

Updated post
Wed, 12 Aug 2015 at 4:50 p.m.

██ CITIFLEET POLICE REPORT (PDF, 4.41 MB) —via Fairfax Media

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The detective, who has since left the police force, also noted the council did not supply Bachop’s credit card or fuel card statements as requested.

### Stuff.co.nz Last updated 13:08, August 12 2015
Police raised possibility of others involved in Dunedin City Council Citifleet fraud
By Hamish McNeilly
It had been billed as the work of a sole suspect, but a police file into the investigation of the theft of 152 cars from the Dunedin City Council fingers the “highly suspicious” activity of another unnamed person. Police have released to Fairfax Media their investigation report into the Citifleet fraud.
Read more

Previous articles:
18.12.14 Stuff: Car fraud pinned on dead man
3.6.14 Stuff: Dunedin council unit under scrutiny

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[screenshot – click to enlarge]

█ For more, enter the terms *citifleet*, *conduct* and *vandervis* in the search box at right.

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Posted by Elizabeth Kerr

DCC AMAZE —oh, more fraud

DCC CULTURE OF ENTITLEMENT
‘Enormously disappointing’ —And Enormously Expected.
‘ONE MAN’ did it. An outright fairytale.
DOLLY didn’t, either. More to come !!

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### ODT Online Mon, 10 Aug 2015
Further cases of fraud at council
By Chris Morris
The Dunedin City Council says the discovery of five more examples of fraud and theft inside the organisation is “enormously” disappointing. […] Details of the smaller incidents emerged last week, in response to Otago Daily Times questions, a year after the discovery of the Citifleet fraud.
Read more

█ ODT blocks public comments to this item.

ODT 10.8.15 [Source: DCC]

[screenshot]

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Related Posts and Comments:
7.8.15 MOU DCC and TCFT New Aquatic Facility #MosgielPool
4.8.15 Hundreds of DCC Staff receive fraud detection/prevention training
28.7.15 DCC tender fraud includes Citifleet —not for discussion
23.7.15 Publicise: laudafinem.com
207.15 Noble property subdivision —DELTA #LGOIMA
13.7.15 Jeff Dickie: Edinburgh tough, Dunedin (DUD)
4.7.15 DCC Citifleet, [a] Deloitte report leaked
25.6.15 DCC Citifleet COVERUP #screwy
17.6.15 Citifleet: ‘Checkpoint’ interviews Dave Cull
4.5.15 Cr Lee Vandervis: Why I continue to vote. #email
1.5.15 Cr Vandervis unlikely to quit several missions #coverup #naturaljustice
24.3.15 Noble property subdivision —DELTA
23.3.15 Noble property subdivision: “Denials suggest that we have not learned.”
17.3.15 DCC —Delta, Jacks Point Luggate II….
3.1.15 DCC: Street talk NEVER HAPPENED
28.4.15 Today at DCC in pictures
24.4.15 DCC re Dr Bidrose’s time as most senior Citifleet Manager
23.4.15 DCC severely FAILS councillor #naturaljustice #contempt
18.3.15 Lee Vandervis releases emails #Citifleet investigation
13.3.15 Cr Vandervis: LGOIMA request – Citifleet … Deloitte Report
24.12.14 Dunedin: Watching the detectives
1.12.14 Stadium Review: LGOIMA request and 2009 Town Hall speeches
18.12.14 DCC: Deloitte report released on Citifleet
21.11.14 Stadium Review: Mayor Cull exposed
19.11.14 Forsyth Barr Stadium Review
1.9.14 DCC Fraud: Further official information in reply to Cr Vandervis
30.8.14 DCC Fraud: Cr Vandervis … urgent need for facts and record to be public
27.8.14 DCC whitewash on serious fraud, steals democracy from citizens
22.8.14 DCC: Deloitte report referred to the police #Citifleet
3.7.14 Stuff: Alleged vehicle fraud at DCC
1.7.14 DCC: Far-reaching fraud investigation Citifleet
28.5.14 DCC: Audit and risk subcommittee
20.3.14 Delta: Report from Office of the Auditor-General
19.3.14 ORFU: Black-tie dinner, theft or fraud?
26.2.14 DCC: New audit and risk subcommittee a little too late !!
14.2.14 DCC: Broadband AND bicycles #fraudband speed
1.12.13 Secret Commissions Act aka ‘Backhanders Law’

█ For more, enter the terms *deloitte*, *citifleet*, *fraud*, *conduct*, *vandervis*, *delta*, *orfu* in the search box at right.

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Posted by Elizabeth Kerr

DCC Citifleet, [a] Deloitte report leaked

WHY WASN’T THE SERIOUS FRAUD OFFICE CALLED IN RIGHT FROM THE VERY START WHEN CR LEE VANDERVIS ALERTED FORMER DCC CHIEF EXECUTIVE PAUL ORDERS TO CAR FRAUD ???

Then too, think of all the people who had access to the Deloitte reports (plural) – more specifically those without access to the digitised data report. That ‘narrows’ the field of leaks to Deloitte itself, NZ Police, private investigators, counsel, privileged council staff, privileged mayor and (some) councillors, those council staff whose lawyers worked on their ‘resignations’ / exit packages….
Who else? A veritable feast.

No-one named in the ODT today hasn’t been mentioned at What if? posts and comments previously – this includes the names of the car companies.

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### ODT Online Sat, 4 Jul 2015
Questions still unanswered
By Chris Morris
[…] even after reading Deloitte’s full “Project Lewis” investigation report – the Otago Daily Times was leaked a copy – there are still many unanswered questions … [The report] named members of three Dunedin families who, together, bought dozens of council-owned cars … Those names included Wayne McFadyen, Destry Duff and Shayne Perkins and members of their extended families, who between them bought 42 vehicles, Deloitte found.
Read more

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Anngow Motors was sold in 2007 to Armstrong Mazda, which was, in turn, sold to Dunedin City Motors in 2009.

### ODT Online Sat, 4 Jul 2015
Long list of car deals
By Chris Morris
Council cars bought and sold within days, and handfuls of cash that disappeared without trace are detailed in Deloitte’s full report into the $1.5 million Citifleet fraud. The report outlines a long list of transactions between former Citifleet team leader Brent Bachop, private buyers and Dunedin car dealers dating back more than a decade.
Read more

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“Mr Bachop or Mr McFadyen kept a significant proportion of the sale proceeds for these vehicles,” the [Deloitte] report said.

### ODT Online Sat, 4 Jul 2015
Nothing to hide, says car buyer
By Chris Morris
Wayne “Tubby” McFadyen says he has nothing to hide. Instead, the man identified as one of the main buyers of Citifleet vehicles says the Dunedin City Council should be looking “in the mirror” if it wants to point the finger. “If there’s anyone to blame, it all falls on their heads too. They can blame everyone else for buying vehicles and whatever they want to do, but at the end of the day the buck stops with them.”
Read more

█ For more, enter the terms *citifleet*, *conduct* and *vandervis* in the search box at right.

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Posted by Elizabeth Kerr

SFO fails to clean up Far North District Council

Council members and employees apparently failed to comply with internal systems and controls.

### ODT Online Thu, 2 Jul 2015
SFO rules out crime at council
By Imran Ali – Northern Advocate
A year-long Serious Fraud Office inquiry into the Far North District Council found some councillors and staff failed to follow rules governing the approval of projects and use of ratepayers’ money, but insufficient evidence to lay criminal charges against anyone. But exactly what the SFO was looking into and who was at fault may never be known, with the office and mayor John Carter unable to discuss the matter further due to restrictions under the SFO Act. NZME
Read more

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Posted by Elizabeth Kerr

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

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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.

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More at this ODT Link

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● 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!!

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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.

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Posted by Elizabeth Kerr

Lee Vandervis releases emails #Citifleet investigation

Updated post Wed, 18 Mar 2015 at 4:53 p.m.

Site Admin
What if? Dunedin has received a total of 17 emails from Lee Vandervis, including two with email attachments. A further three emails have been withheld from publication due to privacy reasons, and which may be actionable.

The first batch of seven emails feature at this post, with the remaining ten emails (some repeats to different recipients as Mr Vandervis follows up with Kyle Cameron of Deloitte, responsible for the Citifleet investigation) to be added at Comments after being photographed and stitched back together to retain threads.

To be noted, this is part document proof of Cr Vandervis’ efforts from 2011 forward to elicit information on suspicion of fraud occurring at Citifleet. The emails show DCC Senior Management were aware of fraud allegations well prior to 2013/14, despite Council’s formal media statements to the contrary last year. They also support the obvious need that existed for a wider fraud investigation in regards to Council tendering processes, service contracts, traffic of car parts and tyres, staff credit card spending (by multiple available cards) and more – quite apart from disposal of at least 152 Council vehicles in the period 2003-2013, the set arbitrary window for investigation by Deloitte.

The DCC chief executive having taken a fraud complaint to Dunedin police was advised police had insufficient resources for follow up. There was then a three-month gap before police received the Deloitte investigation report commissioned by the Council. Three months is long amount of time to minimise and remove critical evidence within Council and about town. Dunedin City Council knows that. Deloitte knows that. Dunedin police know that. We can assume the Council’s insurers know that, yet they paid out $1 million in two instalments, for the ‘lost’ vehicles only [see DCC media release]. The three-month gap in itself is a suspicious if not criminal activity against Dunedin ratepayers and residents.

For more information at this website, enter the term *citifleet* in the search box at right.

Received from Lee Vandervis
Tue, 17 Mar 2015 10:19 a.m.

█ Message: I have had enquiries today from members of the public regarding my initial 2011 investigation of Citifleet complaints. For the public record, I am forwarding the related emails I have on record from that period, some of which you may find interesting enough to publish.

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Batch #1 (six emails distinguished by blue subject lines and flags)

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Attachment 1

Attachment 2

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Posted by Elizabeth Kerr

DCC whistleblowing —what is open government ?

### ODT Online Tue, 17 Mar 2015
Council sets up whistleblower committee
By Eileen Goodwin
An internal audit policy adopted by the Dunedin City Council shifts responsibility to governance level, an “important change”, councillor Richard Thomson told a council meeting yesterday. […] Cr Lee Vandervis asked how easy it would be for the general public to tip off the council’s whistleblower, given he was “beginning to tire of the role, given recent events”.
Read more

█ Comments not allowed at ODT Online.

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It is completely ludicrous that our little Cr Thomson is today making public comment on DCC’s new Whistleblower Policy – given Cr Thomson as chair of DCC Finance Committee has had every opportunity to treat his colleague, Cr Vandervis, the Council’s most notoriously effective Whistleblower, with all fairness and due respect but has actively failed on that count, time and time again.

What is it with Cr Thomson, our import from Southern District Health Board and former Otago District Health Board. Doesn’t the Councillor see it as his mission to relieve Dunedin Ratepayers from the living hell of the nearly unsurpassable multimillion-dollar mountain of corruption and fraudulent activity perpetuated at the Council and through its CCOs. Whitewash is not removal, Councillor.

A quietly spoken SDHB informant tells me Susie Johnstone, a chartered accountant, was wheeled in by the Health Board after the Swann fraud, for mop up. Well, Detectives, who wheeled her in and what was the nature of the mop up?

Separately, following Cr Thomson’s uptake into local body politics, Ms Johnstone was recommended for the position of independent chair of the DCC Audit and Risk Subcommittee.

The ARS committee is now to deal with Whistleblowing (no surprises there). As we have already published in previous months, via intimations of the Draft Whistleblower Policy: the DCC contact for Whistleblowers has been a Balclutha woman, whether actively.

Connections regularly multiply. The timing of Council’s announcement of its new Whistleblower Policy is sheer craziness in light of yesterday’s illegitimate farce of a conduct hearing, held at the expense of the DCC Chief Whistleblower. A woman from Balclutha was a witness at the hearing….

Rule of Thumb for DCC Whistleblowers: use outside means.

Good to see Eileen Goodwin reporting on Council business.

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### ODT Online Tue, 17 Mar 2015
Vandervis accused of ‘bullying’ behaviour
By Vaughan Elder
Dunedin City councillor Lee Vandervis’ aggression towards colleagues was slammed as unacceptable at a code of conduct hearing yesterday. The committee heard evidence relating to three complaints, two of which related to him behaving in an “aggressive” manner. […] The panel’s independent chairman, Prof Stuart Anderson, of the University of Otago’s faculty of law, noted the committee needed to look at Cr Vandervis’ intent and not whether he was correct.
Read more

█ Comments allowed at ODT Online.
How many comments will be lost and deleted?

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### ODT Online Tue, 17 Mar 2015
Councillor apologises for ‘loudness’
By Vaughan Elder
[…] In an effort to not upset people, [Cr Lee Vandervis] would no longer go to the audit and risk subcommittee – where he was accused of being aggressive towards the independent chairwoman – and make his complaints to chief executive Dr Sue Bidrose by email rather than in person. These two steps would “more” importantly stop him from being the subject of further “political back-stabbing”, he said.
Read more

█ Comments not allowed at ODT Online.

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Related Posts and Recent Comments:
13.3.15 Cr Lee Vandervis: LGOIMA request – Citifleet … Deloitte Report
23.2.15 Lee Vandervis on DCC Code of Conduct process #emails #naturaljustice
18.12.14 DCC: Deloitte report released on Citifleet #whitewash

● For more, enter the terms *vandervis* and *citifleet* in the search box at right.

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Documents:
Dunedin City Council – Standing Orders (PDF, 1019.0 KB)
The Standing Orders set out rules for the conduct meetings of the Dunedin City Council and includes the Code of Conduct for Elected Members, as adopted at the inaugural Council meeting Oct 2010.

DCC Committee Structures and Delegations Manual (PDF, 328.7 KB)
This document details the constitution of the Council, Committees and Subcommittees, and the delegations to the Chief Executive.

Deloitte Report – redacted copy (PDF, 3.8 MB)
Project Lewis – Investigation Report

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Posted by Elizabeth Kerr

Cr Lee Vandervis: LGOIMA request – Citifleet Investigation – Deloitte Report

Received from Lee Vandervis
Fri, 13 Mar 2015 at 9:32 a.m.

█ Message: Your readers may be interested in an example of how extraordinarily difficult it often is for Councillors to get information from staff – especially if that information is about staff.
An important example is highlighted in the following email trail – important because as the original Citifleet whistleblower in 2011, I am still getting flack and having information withheld that could help to get to the bottom of DCC frauds.

—— Forwarded Message
From: Lee Vandervis
Date: Wed, 11 Mar 2015 21:25:53 +1300
To: Grace Ockwell [DCC]
Conversation: LGOIMA request – Citifleet Investigation – Deloitte Report
Subject: Re: LGOIMA request – Citifleet Investigation – Deloitte Report

Hi Grace,

Thank you for this sudden response after more than 3 months of nothing.

Further follow up LGOIMA requests are as follows;
Why has this multiple LGOIMA request not been acknowledged or decided upon within the required 21 working days?
When you say that this is “our response” who exactly has been responsible for the decisions in the response?
Are you aware that the last time I went to the ombudsman to hurry up an information request, it took several attempts and 11 months to get an answer?

Looking forward to a response by return.

Cr. Vandervis

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On 11/03/15 4:03 PM, “Grace Ockwell” [DCC] wrote:

Good afternoon Lee,

Thank you for your email of 20 November 2014 and your follow-up email requesting information about the Deloitte Report on Citifleet. Your request has now been forwarded to me to process. It has been considered under the provisions of LGOIMA and the following response is provided. I have repeated your request (or parts thereof) to give context to our response.

a full copy of the original Deloitte Report on Citifleet [including all appendices] as referred to below.

The Police have yet to conclude their investigation of this matter and therefore a copy of the full Deloitte report is still withheld pursuant to section 6(a) of LGOIMA to avoid prejudicing the maintenance of the law and the detection of offences. It is also withheld pursuant to section 7(2)(a) of LGOIMA to protect the privacy of individuals.

As part of the full report from Deloittes I also wish to have, again on grey paper if necessary, the separate Deloitte investigation report and recommendations to CEO Bidrose regarding investigations into the activities of ‘certain DCC employees’. [2.10(b)]

The information provided to the CEO in relation to staff is withheld pursuant to section 7(2)(a) of LGOIMA to protect the privacy of individuals and pursuant to section 7(2)(c) as the information provided is subject to an obligation of confidence.

In addition I wish to see the Deloitte file ‘to support a complaint to the Serious Fraud Office/Police’, and any Citifleet related advice to Council’s legal advisors.

All correspondence between the Council and our legal advisors (including correspondence between Deloitte and our legal advisors on the Citifleet matter) is withheld pursuant to s 7(2)(g) of LGOIMA to protect legal professional privilege. Additionally, some but not all of the material is also withheld pursuant to section 6(a) of LGOIMA to avoid prejudicing the maintenance of the law and the detection of offences.

Finally I wish to have sent to me the electronic copy preserved by Deloitte of information that DCC controls as referred to in 2.10(a) and any associated analysis results.

The Police have not yet concluded their investigation of this matter and therefore the preserved electronic copy of information held by Deloitte which the Council controls is withheld pursuant to section 6(a) of LGOIMA to avoid prejudicing the maintenance of the law and the detection of offences. It is also withheld pursuant to section 7(2)(a) of LGOIMA to protect the privacy of individuals.

As you are aware, as we have withheld information, you have the right pursuant to section 27(3) of LGOIMA to have our decision to withhold information reviewed by the Office of the Ombudsman.

Yours sincerely

Grace Ockwell
Governance Support Officer
Dunedin City Council

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From: Lee Vandervis
Date: Wed, 11 Mar 2015 09:37:03 +1300
To: Sandy Graham [DCC], Sue Bidrose [DCC]
Conversation: Further LGOIMA requests
Subject: Re: Further LGOIMA requests

Dear Sandy and Sue,

Can you please update me by return on where these LGOIMA requests have progressed to?

Regards,
Cr. Vandervis

——————————

On 24/12/14 10:13 AM, “Lee Vandervis” wrote:

Dear Sandy,

Again I request a full copy of the original Deloitte Report on Citifleet [including all appendices] as referred to below.

I can accept that the full report may have to be provided on grey paper.
As part of the full report from Deloittes I also wish to have, again on grey paper if necessary, the separate Deloitte investigation report and recommendations to CEO Bidrose regarding investigations into the activities of ‘certain DCC employees’. [2.10(b)]
In addition I wish to see the Deloitte file ‘to support a complaint to the Serious Fraud Office/Police’, and any Citifleet related advice to Council’s legal advisors.
Finally I wish to have sent to me the electronic copy preserved by Deloittes of information that DCC controls as referred to in 2.10(a) and any associated analysis results.

Ratepayers have paid quarter of a million dollars for the production of this information and I wish to see all of it as a public representative in the public interest.

It is not acceptable to me to have only been provided with the public redacted report along with the public at such a late pre-Christmas stage.

Regards,
Cr. Lee Vandervis

——————————

On 13/10/14 10:32 PM, “Lee Vandervis” wrote:

Dear Sandy,

You have not answered the question as to why one elected representative [the Mayor] seeing the entire Deloitte report [and parts of the report appearing in Audit and Risk Subcommittee agendas] is not likely to “prejudice the maintenance of the law including the investigation and detection of offences.” but that this is still an excuse for not showing the entire report to other elected representatives like myself. Especially given the number of comments the Mayor and CEO have been making to the media regarding the subject of the Deloitte Report.

Your claim that the Stadium review is not yet completed and is still in draft form directly contradicts the advice of the quoted Audit and Risk agenda of 7/10/14 which plainly says that the Stadium “external review has been completed”. If the former, since it can’t be both, why can’t I see it anyway? And why have we then been misled in the A&R agenda?

Being “of course entitled to have that decision reviewed by the Office of the Ombudsmen.” is a farcical affront, given the last response from this dysfunctional excuse for a government department took ELEVEN MONTHS to reply to my request to see the faults list for the long completed Town Hall redevelopment, which you also refused.

This systematic stonewalling of this elected representative by DCC staff is unacceptable to me.

Regards,
Cr. Lee Vandervis

[ends]

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Related Post and Comments:
23.2.15 Lee Vandervis on DCC Code of Conduct process #emails #naturaljustice

█ For more, enter the terms *vandervis* and *citifleet* in the search box at right.

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Posted by Elizabeth Kerr

Tony Avery is “somebody’s” pet #gigatown lapdog

Infrastructure and Networks General Manager Tony Avery resigned from Dunedin City Council on 28 August 2014, falling on his sword as a result of the Citifleet/Citipark fraud —something, the Council conveniently brushes under its carpet with ALL BLAME politically attaching (for insurance purposes) to the deceased former Citifleet manager Brent Bachop. Other council staff were clearly involved; one person alone does not dispose of 152+ cars, and related council assets. So Mr Avery, WENT…. But not really.
With all the scandal and corruption appearing, the Council supportively, extended “help” and salary repeatedly to Mr Avery, after initial news that he would work through to Christmas. Then, on Saturday 31 January the Council revealed that: “He would continue working fulltime, assisting [Ruth] Stokes and helping with the transition on key projects, until March 31, [Sue] Bidrose said.” (ODT 1.2.15).

But the latest DCC blinder:

“Tony Avery’s new gig (pun intended)
Helping Gigatown Dunedin secure sources of funding…”

Updated post 16.4.16
15.5.15 ODT: City readies to take advantage of Gigatown
Last month, [the Digital Community Trust] employed former Dunedin City Council infrastructure and networks general manager Tony Avery as interim project manager.

DCC Pets. Pet Projects. NO COUNCIL SHAME.
How do we define corruption, again.

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Related Post and Comments:
12.1.15 Traffic lights: Anzac Avenue/Frederick Street intersection
29.12.14 DCC gets QLDC talent…. the weft and warp deviously weaves
6.11.14 DCC pals up with Chorus —gigatown and telecoms cabinets
9.10.14 DCC’s Daaave at university bollard, in his twilight
28.8.14 DCC: Tony Avery resigns
5.6.14 DCC Transport Strategy and Riccarton Road
22.5.14 DCC Transportation Planning —ANOTHER consultation disaster
24.4.14 DCC promotes Riccarton Rd as sole heavy traffic bypass
29.10.13 DCC (EDU) invents new job! —Gigatown/Digital Office
20.11.12 DCC vs Anzide Properties decision: The road “has no legal basis”

█ For more, enter the terms *citifleet*, *sh88*, *anzide*, *cycle*, *parking* or *riccarton* in the search box at right.

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Posted by Elizabeth Kerr

*Image: Tony Avery tweaked by whatifdunedin

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.

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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.

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Posted by Elizabeth Kerr

Vandervis: Deloitte and Police Citifleet investigations

Received from Lee Vandervis
Fri, 19 Dec 2014 at 11:54 a.m.

Deloitte and Police Citifleet Investigations – information I believe should be public in the public interest.

Message: I have had verbal and email responses from both CEO Bidrose and the Police denying that the scope of the Police investigation had been limited to missing or inappropriately sold DCC vehicles. These responses remain confidential currently because of other content they contain.
The fact remains that the investigating officer Detective Matthew Preece was adamant when he interviewed me on what I understood to be the last week of his investigation that he was not able to pursue my concerns of wider fraud other than missing vehicles, such as allegations regarding DCC contracts, and credit card and other financial spending fraud, because the complaint laid related just to missing vehicles.
Even more concerning was Detective Preece’s assertion to me that ‘all those that had acquired DCC vehicles needed to do, was to say that they understood Mr Bachop had the authority to dispose of them’ for them not to be liable for receiving or criminal prosecution. Detective Preece said that all those he had interviewed who had acquired DCC vehicles had said just that.

My worst fears that the tragic death of Mr Bachop would not be used to fully investigate the wider implications of a DCC staff self-serving culture were confirmed by the very limited scope of the belated Police investigation as relayed to me by Detective Preece. I wrote the following email to CEO Bidrose, Sandy Graham head of Governance, and Detective Mathew Preece that night. No demurring or other response to the email below has been received from Detective Preece.

Regards,
Cr. Vandervis

From: Lee Vandervis
Date: Tue, 11 Nov 2014 22:57:31 +1300
To: Sue Bidrose [DCC], Sandy Graham [DCC], Matthew Preece [NZ Police]
Conversation: Police Citifleet Investigation
Subject: Police Citifleet Investigation

Dear Sue,

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

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

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

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

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

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

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

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

Kind regards,
Cr. Lee Vandervis

—

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

Hi Sue,
Further to my verbal requests of a week or two ago please forward copies of all original correspondence and or other direction given to Deloittes in regard to their investigation of Citifleet.
I wish to have the original brief stating the terms of reference, the subsequent brief where the investigation needed to be extended, and any other direction written or otherwise given to Deloittes regarding the Citifleet investigation.
I am deeply disturbed by what I have seen in parts of the investigation conclusions appearing without covering page or any details identifying them as parts of the Deloitte findings in non-public parts of the Audit and Risk subcommittee meetings.
I note a severe slowing on responses to my recent LGOIMA requests, and hope this has been a temporary frustration.
Kind regards,
Cr. Lee Vandervis

—

Posted by Elizabeth Kerr

DCC Citifleet by email . . . . woops! (another timeline proof)

Received from Lee Vandervis
Thu, 18 Dec at 11:35 p.m.

Message: I have spoken with Michael Allan at Radio NZ tonight. I have also sent him a selection of emails from 2011, which I also sent to Kyle Cameron of Deloitte and to Mathew Preece of the Dunedin Police and which I will now copy to you.

[five threads follow]

I —Info re Brent Bachop

From: Lee Vandervis
Date: Thu, 18 Dec 2014 23:30:47 +1300
To: Michael Allan [Radio NZ]
Conversation: Info re Brent Bachop
Subject: FW: Info re Brent Bachop

From: Lee Vandervis
Date: Mon, 10 Nov 2014 18:27:17 +1300
To: Matthew Preece [NZ Police]
Conversation: Info re Brent Bachop
Subject: FW: Info re Brent Bachop

From: Lee Vandervis
Date: Thu, 05 Jun 2014 14:21:24 +1200
To: Kyle Cameron [Deloitte]
Conversation: Info re Brent Bachop
Subject: FW: Info re Brent Bachop

****

—— Forwarded Message
From: Lee Vandervis
Date: Tue, 08 Nov 2011 22:56:17 +1200
To: Sandy Graham [DCC]
Conversation: Info re Brent Bachop
Subject: Re: Info re Brent Bachop
G’day Sandy,
Thank you for the limited response you have given me to below. I still hope to get 2007, 2008 and 2009 credit card spending details as per those already provided for 2010.
Regarding “spending by Brent Bachop, especially September 2007. I wish to have the details confirmed on a purchase of Falken tyres size 195/65-15 as fitted to an Alfa Romeo.” is it possible that these tyres may have been paid for by some other method that still ended up on the ratepayers’ account? Please advise if I have to discover the registration plate number of the particular Alfa Romeo to get the information on who paid for this set of tyres.
Re purchase of Mazda Bounty vehicle that it is alleged Mr Bachop sold to himself, surely complete information on this type of transaction must be on Council records?
Looking forward,
Lee

On 14/10/11 10:21 PM, “Lee Vandervis” wrote:
Hi Sandy,
Sorry to keep coming back with this, but the info required has been difficult to tease out.
Thank you for 2010 DCC credit card spending list.
I am now looking for 2007 credit card spending by Brent Bachop, especially September 2007. I wish to have the details confirmed on a purchase of Falken tyres size 195/65-15 as fitted to an Alfa Romeo.
Could you also forward 2008 and 2009 credit card spending.
Also of interest is the sales, sale prices and sold-to information on the sales of all Mazda Bounty vehicles, especially one that Mr Bachop allegedly sold to himself.
Sorry I have no dates for this, but the vehicle type, Mazda Bounty should hopefully be enough to establish DCC ownership and subsequent disposal.
Re DCC vehicle disposals, can you confirm which business or businesses the DCC disposes of fleet vehicles through currently, and which businesses have been used in the last 5 years.
In case you are wondering, these info requests are not fishing expeditions but responses to repeated allegations form a number of Dunedin businesses, many focused on Mr Bachop.
I have had no personal dealings with Mr Bachop and do not even know what he looks like.
Kind regards,
Lee
—— End of Forwarded Message

II —Info re Brent Bachop

From: Lee Vandervis
Date: Thu, 18 Dec 2014 23:29:22 +1300
To: Michael Allan [Radio NZ]
Conversation: Info re Brent Bachop
Subject: FW: Info re Brent Bachop

From: Lee Vandervis
Date: Mon, 10 Nov 2014 18:27:41 +1300
To: Matthew Preece [NZ Police]
Conversation: Info re Brent Bachop
Subject: FW: Info re Brent Bachop

From: Lee Vandervis
Date: Thu, 05 Jun 2014 14:15:31 +1200
To: Kyle Cameron [Deloitte]
Conversation: Info re Brent Bachop
Subject: FW: Info re Brent Bachop

****

—— Forwarded Message
From: Sandy Graham [DCC]
Date: Tue, 1 Nov 2011 11:02:33 +1300
To: Lee Vandervis
Subject: RE: Info re Brent Bachop
Dear Lee
Just an update on this.
I should have the purchase card info this afternoon and will flick it onto you.
Sandy

From: Lee Vandervis
Sent: Friday, 14 October 2011 11:21 p.m.
To: Sandy Graham
Subject: Info re Brent Bachop
Hi Sandy,
Sorry to keep coming back with this, but the info required has been difficult to tease out.
Thank you for 2010 DCC credit card spending list.
I am now looking for 2007 credit card spending by Brent Bachop, especially September 2007. I wish to have the details confirmed on a purchase of Falken tyres size 195/65-15 as fitted to an Alfa Romeo.
Could you also forward 2008 and 2009 credit card spending.
Also of interest is the sales, sale prices and sold-to information on the sales of all Mazda Bounty vehicles, especially one that Mr Bachop allegedly sold to himself.
Sorry I have no dates for this, but the vehicle type, Mazda Bounty should hopefully be enough to establish DCC ownership and subsequent disposal.
Re DCC vehicle disposals, can you confirm which business or businesses the DCC disposes of fleet vehicles through currently, and which businesses have been used in the last 5 years.
In case you are wondering, these info requests are not fishing expeditions but responses to repeated allegations form [sic] a number of Dunedin businesses, many focused on Mr Bachop.
I have had no personal dealings with Mr Bachop and do not even know what he looks like.
Kind regards,
Lee
—— End of Forwarded Message

III —Councillor Vandervis question about tyres

From: Lee Vandervis
Date: Thu, 18 Dec 2014 23:27:51 +1300
To: Michael Allan [Radio NZ]
Conversation: Councillor Vandervis question about tyres
Subject: FW: Councillor Vandervis question about tyres

From: Lee Vandervis
Date: Mon, 10 Nov 2014 18:28:26 +1300
To: Matthew Preece [NZ Police]
Conversation: Councillor Vandervis question about tyres
Subject: FW: Councillor Vandervis question about tyres

From: Lee Vandervis
Date: Thu, 05 Jun 2014 14:11:32 +1200
To: Kyle Cameron [Deloitte]
Conversation: Councillor Vandervis question about tyres
Subject: FW: Councillor Vandervis question about tyres

****

—— Forwarded Message
From: Kevin Thompson [DCC]
Date: Mon, 26 Jun 2006 16:55:33 +1200
To: Lee Vandervis
Cc: Brent Bachop [DCC]
Subject: FW: Councillor Vandervis question about tyres
Good afternoon.
At the Finance & Strategy Meeting this afternoon I was incorrect in saying we go out to tender for the supply of tyres — as stated below we work through the GSB to get the best discounted rate — my apologies for putting you wrong on this point.
At the time I was thinking of our tendering process for the mtce and servicing of the vehicles which is going out for tender next year.
If you would like to further discuss this please give me a call.
regards,
Kevin

—–Original Message—–
From: Brent Bachop [DCC]
Sent: Monday, 26 June 2006 4:31 p.m.
To: Kevin Thompson [DCC]
Subject: Councillor Vandervis question about tyres
Kevin
In answer to the queries you had from Councillor Vandervis about the purchase of tyres.
Citifleet spend under $50,000 annually so we are not required to go to tender.
All tyres are purchased locally from Bridgestone NZ (trading as Firestone) through GSB Supply Corp (formally the Government Stores Board) giving us nation wide buying power so we get our tyres and repairs at a heavily discounted rate.
Most large Council’s and the likes of the Police etc use GSB not only for tyres but fuel as well as do we.
We have in the past used other suppliers but none of them could match the service and buying power we get through GSB.
I have looked into using other suppliers as recently as last Friday and after working through this issue with the Expenditure Manager in the Finance department we both came to same conclusion that Firestone is the best option for us at this point in time.
All tyres purchased are done so using our Fleetcard system.
Let me know if you need any more info.
Brent
—— End of Forwarded Message

IV —Turners Auctions problems encountered trying to deal with DCC and Brent Bachop

From: Lee Vandervis
Date: Thu, 18 Dec 2014 23:26:31 +1300
To: Michael Allan [Radio NZ]
Conversation: Turners Auctions problems encountered trying to deal with DCC and Brent Bachop
Subject: FW: Turners Auctions problems encountered trying to deal with DCC and Brent Bachop

From: Lee Vandervis
Date: Mon, 10 Nov 2014 18:29:10 +1300
To: Matthew Preece [NZ Police]
Conversation: Turners Auctions problems encountered trying to deal with DCC and Brent Bachop
Subject: FW: Turners Auctions problems encountered trying to deal with DCC and Brent Bachop

From: Lee Vandervis
Date: Wed, 04 Jun 2014 22:14:44 +1200
To: Kyle Cameron [Deloitte]
Conversation: Turners Auctions problems encountered trying to deal with DCC and Brent Bachop
Subject: FW: Turners Auctions problems encountered trying to deal with DCC and Brent Bachop

****

—— Forwarded Message
From: Vivienne Harvey [DCC]
Date: Fri, 11 Nov 2011 08:17:33 +1300
To: Paul Orders [DCC], Lee Vandervis
Subject: RE: Turners Auctions problems encountered trying to deal with DCC and Brent Bachop
Hi Lee
I have checked the diary for 30 November and Paul can fit a meeting in with Turners and yourself at 11.00 am that day or 1.00 pm. Due to the Community Development Committee at 2.00 pm that day and a Maori Participation Working Party meeting at 5.00 pm there is no other time in the afternoon.
Who else do you want in attendance at the meeting?
Thanks
Vivienne

From: Paul Orders
Sent: Friday, 11 November 2011 6:38 a.m.
To: Vivienne Harvey
Subject: Fwd: Turners Auctions problems encountered trying to deal with DCC and Brent Bachop
Can we try to accommodate something on this.
Sent from my iPhone

Begin forwarded message:
From: Lee Vandervis
Date: 10 November 2011 11:40:00 AM NZDT
To: Paul Orders [DCC]
Cc: Shane Gall [Turners]
Subject: Turners Auctions problems encountered trying to deal with DCC and Brent Bachop
Dear Paul,
Further to my more general email this morning about building partnerships, Dunedin’s largest car auction business has contacted me regarding on-gong [sic] problems trying to do business with the DCC.
Turner’s Auctions big cheese Mr Kachwalla from Auckland will be in Dunedin on the 30th of this month, and was hoping to organise a brief meeting with you and local Turners management on the afternoon of the 30th to attempt to normalise a Turners/DCC business relationship.
I was hoping to bundle similar issues with other Dunedin business issues with Mr Bachop, but am still awaiting information ex DCC after over a month in order to do this.
Hopefully you will have time on the next Wednesday the 30th to accommodate Turners Management hopes for a meeting.
Kind regards,
Cr. Lee Vandervis

From: Shane Gall [Turners]
Date: Wed, 2 Nov 2011 14:30:03 +1300
To: Lee Vandervis
Subject: FW: Turners
Good Afternoon Lee
Attached below is the response we received from Brent less than one minute after sending the email. After 2 emails & numerous phone calls leaving voice messages I’ve yet to get a response.
Asgar Kachwalla is the national accounts manager, & will be here on the 29th / 30th of this month. So if we could get an appointment to meet with Paul Orders this would be much appreciated.
Kind Regards
Shane Gall

{{RE: Ute}}
—— End of Forwarded Message

Attachment To Shane Gall’s Email

[Bachop] Another staff turn over, they wonder why their clients cant strike a good relationship.
As received (Sep 2011); date, time and recipient detail lost from email chain (recoverable). -Eds

—

That’s great, talk to you soon Peter.
Brent Bachop
Citifleet Team Leader
Dunedin City Council
As received (Sep 2011); date, time and recipient detail lost from email chain (recoverable). -Eds

—

From: Peter Boyle [Turners]
Sent: Thursday, 29 September 2011 3:51 p.m.
To: Brent Bachop
Cc: Shane Gall [Turners]
Subject: RE: Ute

Hi Brent
Jeff has finished up with us as of last week so Shane Gall will be handling this for you. The vehicle has just arrived and once he has given it a look over he will be in touch to discuss your expectations, setting the reserve, etc.
I am the new manager down here and would love to get out and meet you in the near future. Shane will talk to you about setting up a meeting
Kind Regards
Peter Boyle
Branch Manager Otago/Southland

From: Brent Bachop
Sent: Thursday, 29 September 2011 1:37 p.m.
To: Jeff McLean [Turners]
Subject: Ute
Hi Jeff
Ill have a Ford Courier coming out you this afternoon for disposal.
Talk to you soon.
Regards
Brent Bachop
Citifleet Team Leader
Dunedin City Council

—— End of Forwarded Message

V —Turners Auctions problems encountered trying to deal with DCC and Brent Bachop

From: Lee Vandervis
Date: Thu, 18 Dec 2014 23:24:12 +1300
To: Michael Allan [Radio NZ]
Conversation: Turners Auctions problems encountered trying to deal with DCC and Brent Bachop
Subject: FW: Turners Auctions problems encountered trying to deal with DCC and Brent Bachop

From: Lee Vandervis
Date: Mon, 10 Nov 2014 18:30:38 +1300
To: Mathew Preece [NZ Police]
Conversation: Turners Auctions problems encountered trying to deal with DCC and Brent Bachop
Subject: FW: Turners Auctions problems encountered trying to deal with DCC and Brent Bachop

From: Lee Vandervis
Date: Wed, 04 Jun 2014 22:12:36 +1200
To: Kyle Cameron [Deloitte]
Conversation: Turners Auctions problems encountered trying to deal with DCC and Brent Bachop
Subject: FW: Turners Auctions problems encountered trying to deal with DCC and Brent Bachop

****

—— Forwarded Message
From: Shane Gall [Turners]
Date: Thu, 10 Nov 2011 11:57:03 +1300
To: Lee Vandervis
Subject: RE: Turners Auctions problems encountered trying to deal with DCC and Brent Bachop
Thank you Lee

From: Lee Vandervis
Sent: Thursday, 10 November 2011 11:40 a.m.
To: Paul Orders
Cc: Shane Gall [Turners]
Subject: Turners Auctions problems encountered trying to deal with DCC and Brent Bachop
Dear Paul,
Further to my more general email this morning about building partnerships, Dunedin’s largest car auction business has contacted me regarding on-gong [sic] problems trying to do business with the DCC.
Turner’s Auctions big cheese Mr Kachwalla from Auckland will be in Dunedin on the 30th of this month, and was hoping to organise a brief meeting with you and local Turners management on the afternoon of the 30th to attempt to normalise a Turners/DCC business relationship.
I was hoping to bundle similar issues with other Dunedin business issues with Mr Bachop, but am still awaiting information ex DCC after over a month in order to do this.
Hopefully you will have time on the next Wednesday the 30th to accommodate Turners Management hopes for a meeting.
Kind regards,
Cr. Lee Vandervis

From: Shane Gall [Turners]
Date: Wed, 2 Nov 2011 14:30:03 +1300
To: Lee Vandervis
Subject: FW: Turners
Good Afternoon Lee
Attached below is the response we received from Brent less than one minute after sending the email. After 2 emails & numerous phone calls leaving voice messages I’ve yet to get a response.
Asgar Kachwalla is the national accounts manager, & will be here on the 29th / 30th of this month. So if we could get an appointment to meet with Paul Orders this would be much appreciated.
Kind Regards
Shane Gall
—— End of Forwarded Message

—

Posted by Elizabeth Kerr

DCC: Deloitte report released on Citifleet

██ Deloitte Report – redacted copy (PDF, 3.8 MB)
Project Lewis – Investigation Report

Dunedin City Council – Media Release
Deloitte Report Released

This item was published on 18 Dec 2014

The findings of an independent investigation into a fraud at the Dunedin City Council have been released publicly.

DCC Chief Executive Officer Sue Bidrose says, “The Police have advised their investigation is now at a point where the Deloitte report can be released. We have committed to keeping ratepayers informed and can now make the findings of the report public.”

Deloitte was engaged by the DCC in May to launch an investigation after staff identified what appeared to be a discrepancy in the number of Citifleet vehicles when implementing new financial procedures related to DCC assets. The alleged fraud totals more than $1.5 million and centres on the DCC receiving no proceeds from the sale of 152 vehicles from the DCC’s vehicle fleet. A formal complaint was laid with the Police in August following the Deloitte investigation. The Police were asked to investigate any matters arising from the Deloitte report.

Ms Bidrose says she cannot comment on the Police investigation.

Commenting on the Police investigation, Dunedin Clutha Waitaki Area Commander Inspector Jason Guthrie says, “This is a complex series of offending involving the significant misappropriation of DCC assets. There are a number of aspects to the Police investigation and whilst it is well progressed, it will be subject to a final review in the new year.”

The Deloitte report looks at a range of issues, including the ways the fraud was carried out and internal control failings at the DCC. Some parts of the report have been redacted for privacy reasons.

Ms Bidrose says, “The Deloitte report is clear that a single person committed the fraud in a number of different ways over an extended period of time. The fact this could happen was an indictment on our business processes and we have made considerable efforts to improve and modernise these. This work was already underway and was how the fraud was uncovered. Measures have been, and continue to be, taken to make sure the appropriate level of accountability and oversight is in place in the future across the organisation. We are committed to continuing our programme of work to ensure we have best practice across the board.”

[STOP. Who aided, abetted and benefitted from the deals ???]

Ms Bidrose says the DCC has completed all the employment processes identified in the Deloitte report. These relate to a small number of staff, but she will not be discussing individual employment matters in public. The DCC has received a $1 million insurance payment following the Citifleet fraud. The DCC had $1 million fidelity insurance and insurers QBE have paid out the total amount, in two separate payments.

Mayor of Dunedin Dave Cull says, “The Council has pushed for more transparency and tighter processes, with the clear aim of becoming a best practice public sector organisation. We totally support the work senior management has been carrying out and the changes which have resulted from this scrutiny.”

Ms Bidrose says a wide range of work has been completed to improve and modernise DCC processes, including:
● The introduction of a new Audit and Risk Subcommittee, with an independent Chair.
● All tenders that are awarded through the DCC Tenders Board are published on the DCC website for greater transparency.
● A central contracts register has been put in place.
● The ‘whistleblower’ policy has been updated.
● A review of fleet card processes and the issuing of cards.

Further work in progress includes:
● The appointment of a dedicated Risk and Internal Audit Manager. This position has been advertised.
● A fraud awareness campaign and training for all staff will begin in the new year.
● A risk management framework, which is almost complete.
● The development of new procurement and tendering processes across the DCC.

█ A copy of the redacted report is available at http://www.dunedin.govt.nz/deloittereport

Background
Citifleet is responsible for the management of all DCC vehicles and the operation of an internal courier service. The fleet includes cars, trucks, motorcycles, vans and various trailers, plant and machinery. There are currently 122 vehicles, but the DCC is in the process of reviewing whether all those vehicles are required.

Contact Graham McKerracher, Communications and Marketing Manager on 027 294 6301. DCC Link

—

[screenshot]

—

Posted by Elizabeth Kerr

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

—

—

—

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 . . . .

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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

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

Auditor-general Lyn Provost #Resign

Link + message received from Anonymous
Wed, 26 Nov 2014 at 11:53 p.m.

Message: What unbelievable crap from Lyn Provost, given her office (OAG) has brushed aside so many public complaints and concerns about Council expenditure that may have prevented the situation she now chooses to alert us all to !!!!

________________________________

### stuff.co.nz Last updated 12:39 26/11/2014
Lax councils $7 billion behind in infrastructure
–Dominion Post
Ratepayers are facing a $7 billion bill to replace crumbling roads and water pipes caused, in part, by the “worry about it later” attitude of councils. A report released yesterday by Auditor-General Lyn Provost found councils nationwide have been failing to put enough money aside to maintain their collective $100b of infrastructure assets. The gap between funds needed and reality is tipped to reach $6b to $7b by 2020. Much of the country’s infrastructure was built in two waves, from 1910-30 and 1950-86, and many assets would reach the end of their lives at the same time, the report warned.

“They are storing up a problem for future generations, ” said Bruce Robertson, assistant auditor-general in charge of local government. Will councils step up and deal transparently and effectively with these issues?”

Keeping rates bills down to maintain political popularity was one reason assets were underfunded, and a “worry about it later” mentality also existed, the report stated.[…] Local Government NZ president Lawrence Yule said a $7b shortfall was significant, but it was too early for ratepayers to be pressing the panic button. It was not yet clear how accurate the auditor-general’s findings were, he said.
Read more

Note: These last years Lawrence Yule has been publicising how bloody good debt-funding council activities is. WTF

—

████ Report 7 Nov 2014:
Auditor-General’s overview and conclusions
Water and roads: Funding and management challenges
New Zealand has a good reputation internationally for managing assets because of the work of groups such as New Zealand Asset Management Support (NAMS). However, many local authorities’ asset management practices fall short of asset management guidance, such as that developed by NAMS. This report suggests that local authorities need to better understand the local economy to plan for the longer term and that their management of infrastructure and capital needs to improve to meet the challenges ahead. Full Report

—

Related Posts and Comments:
21.11.14 Stadium Review: Mayor Cull exposed
31.10.14 Whaleoil on “dodgy ratbag local body politicians” —just like ours at DCC
10.10.14 Cull consorts with losers at LGNZ
9.9.14 Mangawhai, Kaipara: Latest news + Winston Peter’s speech
26.8.14 DCC: Forensics for kids
6.8.14 DCC tightens policy + Auditor-General’s facetious comments
15.7.14 Stadium: Who is being protected?
26.6.14 LGNZ #blaggardliars
31.3.14 Audit services to … local bodies #FAIL ● AuditNZ ● OAG ● LynProvost
20.3.14 Delta: Report from Office of the Auditor-General
7.3.14 Jeff Dickie: Letter to the Auditor-General Lyn Provost
2.2.14 Stadium: ODT editorial (1.2.14) —Garbutt debunks myths
3.12.13 LGNZ: OAG report on Kaipara
28.5.13 Carisbrook: Auditor-General #fails Dunedin residents and ratepayers
21.4.13 Councils “in schtook” —finance & policy analyst Larry.N.Mitchell
31.3.13 DIA and Office of the Auditor General stuff up bigtime #pokierorts
6.3.13 Carisbrook: Cr Vandervis elaborates
15.2.13 Carisbrook: Call for OAG investigation into DCC / ORFU deals
22.11.12 Cull COVERS UP COUNCIL #massage

For more, enter the terms *dcc*, *dchl*, *dvml*, *citifleet*, *stadium*, *carisbrook*, *delta* in the search box at right.

—

Posted by Elizabeth Kerr

DCC Citifleet, more revelations….

Dunedin City councillor Lee Vandervis said he alerted council chief executive of the time Paul Orders that the Dunedin branch of Turners was consistently shut out of contracts it sought, mainly for the disposal of used cars in 2011.

### stuff.co.nz Last updated 09:57 24/10/2014
Citifleet ‘stonewalled’ auctioneer firm
By Wilma McKay
A Dunedin city councillor says the council should have investigated its fraught Citifleet unit three years ago, when he expressed concerns that it shut out firms like car auctioneer Turners. Lee Vandervis said that in 2011 he alerted council chief executive of the time Paul Orders that the Dunedin branch of Turners was consistently shut out of contracts it sought, mainly for the disposal of used cars. The city council said in June this year it was investigating practices within its vehicle fleet unit Citifleet.
Unit team leader Brent Bachop had died suddenly in late May. His death has been referred to the coroner.
A subsequent Deloitte investigation, commissioned by the council, unravelled a vast network of alleged fraudulent activity, some with selected car dealers and other individuals, over 11 years, equating to more than a million dollars in lost council revenue. Some of the activity involved profits from the disposal of second hand Citifleet vehicles allegedly being pocketed instead of being paid into council coffers.
Vandervis said he was concerned about Bachop’s business dealings when he was told by Turners and other Dunedin businesses they were having difficulty even engaging with Citifleet. He began pressing Orders on the issue and made a raft of requests for information around Citifleet. Vandervis suggested Orders meet the manager “to attempt to normalise a Turners/DCC business relationship”. Vandervis said Turners’ staff had expressed “long and on-going frustration at trying to deal with Citifleet vehicle disposals”.
Read more

—

Posted by Elizabeth Kerr

DCC Citifleet, undetectable….

Received from Lee Vandervis
Tue, 21 Oct 2014 at 7:36 p.m.

Message: In discussions with Sir Julian [Smith], apparently the ODT Editor has said, since Mr Cannan’s comment, that the actual reason for non-publication of my ‘Citifleet Years of Inaction’ letter was that I already had a letter printed on a similar topic recently.
My previous letter was not however on a similar topic or recent. My first letter which was printed, was sent on 24 August on the topic of Coroner and Police inaction.
My second ‘Citifleet Years of Inaction’ letter that the ODT have chosen not to print was on the topic of CEO Paul Orders’ inaction in 2011, and Mayoral misrepresentation.
It is a shame that most people will not now get the true story.
Feel free to publish so that at least some people get to know some of what has been misrepresented.

—— Forwarded Message
From: Lee Vandervis
Date: Sun, 07 Sep 2014 21:20:41 +1300
To: Cushla Turner [ODT], Nicholas GS Smith [ODT]
Cc: Murray Kirkness [ODT]
Conversation: Citifleet chain dragged – Letter to the Editor
Subject: Re: Citifleet chain dragged – Letter to the Editor

Resent – ODT chain dragged?

___________________________

On 4/09/14 8:02 AM, “Lee Vandervis” wrote:

Hi Cushla,
Monday has been and gone, and the mysteries of Coroner and Police inaction linger.
Is there any new reason for delay?

Kind regards,
Cr. Lee Vandervis

___________________________

On 29/08/14 10:44 AM, “Cushla Turner” wrote:

Dear Cr. Vandervis,

Thank you for your letter to the editor, which was received on Monday, August 25. Given the content of your letter, it has been referred to the Dunedin City Council, the police and the coroner’s office for comment, with the deadline for responses being Monday, September 1. Our intention is to publish the letter once we have responses (or confirmations of no comment) from these sources.

Kind regards,
Cushla Turner
Editor’s secretary
Otago Daily Times

___________________________

On 29/08/2014 7:31 AM, Lee Vandervis wrote:
FW: Citifleet chain dragged – Letter to the Editor
Hi Murray,

I am interested to know whether or not the letter below is soon to appear in your paper.
There is a great deal following these questions that needs to be made public, and I am concerned at the spin so far, and that further delays will hinder urgently needed changes at the DCC.

Kind regards,
Cr. Vandervis

___________________________

—— Forwarded Message
From: Lee Vandervis
Date: Sun, 24 Aug 2014 09:57:37 +1200
To: EditorODT
Cc: Nicholas GS Smith [ODT]
Conversation: Citifleet chain dragged – Letter to the Editor
Subject: Citifleet chain dragged – Letter to the Editor

Citifleet chain dragged – Letter to the Editor

Dear Murray,

Why is the coroner taking more than 3 months to deliver a verdict on the DCC Citifleet manager’s sudden death?
Why have the Police only just begun an investigation when so much evidence has been floating around for years and was so tragically highlighted over 3 months ago?
I have been asking for Citifleet manager and other tender process investigations recorded back at least as far as 2011.
Justice delayed is justice denied. Or with so much public money gone is that perhaps the reason?

Cr. Lee Vandervis

—— End of Forwarded Message

___________________________

—— Forwarded Message
From: Dave Cannan [ODT]
Date: Tue, 30 Sep 2014 10:57:03 +1300
To: Lee Vandervis
Cc: EditorODT
Subject: citifleet

Hi Lee — in response, we regarded your email of 13.9.14 as more of a helpful backgrounder to assist us with our ongoing inquiries into the Citifleet scandal – which, as you will have no doubt observed, we are continuing to do regularly — but not as a letter for publication..

regards,\Dave Cannan [Day Editor, ODT]

___________________________

On 29/09/2014 10:59 PM, Lee Vandervis wrote:

Re: Citifleet years of inaction. – Letter to the Editor
Resent – hoping for some response.
Cheers,
Lee

___________________________

On 13/09/14 11:08 AM, “Lee Vandervis” wrote:

Citifleet years of inaction. – Letter to the Editor [ODT]

Dear Editor,

It has been reported (26.8.14) that “Cull said the recent alleged fraud within Citifleet was detected during a comprehensive internal review of the department, one of a series initiated by former council chief executive Paul Orders and continued by his successor, Bidrose.”, who said (3.9.14) “Bachop had told her all car sales went through Turners Car Auctions.”
In fact DCC vehicle disposal and other Bachop issues had been flagged in verbal questions and emails from me to CEO Orders and other senior DCC staff in 2011 following many complaints from Turner’s Auctions and other motor industry businesses. I also set up a meeting to resolve DCC/Turners issues between CEO Orders and Turner’s Auckland based national accounts manager Asgar Kachwalla in November 2011. It seems that little was done until CEO Bidrose began an investigation almost three years later. Perhaps the ODT should be doing some more investigating of its own. [confirming email example below].

Kind regards,

Cr. Lee Vandervis

___________________________

From: Lee Vandervis
Sent: Thursday, 10 November 2011 11:40 a.m.
To: Paul Orders [DCC]
Cc: Shane Gall [Turner’s Auctions]
Subject: Turners Auctions problems encountered trying to deal with DCC and Brent Bachop

Dear Paul,

Further to my more general email this morning about building partnerships, Dunedin’s largest car auction business has contacted me regarding on-gong (sic) problems trying to do business with the DCC.
Turner’s Auctions big cheese Mr Kachwalla from Auckland will be in Dunedin on the 30th of this month, and was hoping to organise a brief meeting with you and local Turners management on the afternoon of the 30th to attempt to normalise a Turners/DCC business relationship.
I was hoping to bundle similar issues with other Dunedin business issues with Mr Bachop, but am still awaiting information ex DCC after over a month in order to do this.

Hopefully you will have time on the next Wednesday the 30th to accommodate Turners Management hopes for a meeting.

Kind regards,
Cr. Lee Vandervis

—— End of Forwarded Message

—

Posted by Elizabeth Kerr

RNZ: Cost of economic crime

My conclusion (which should sound vaguely familiar) – our priorities as a country are completely screwed. If we put as much energy into cracking down on economic crime as we did chasing welfare cheats – we could afford a proper welfare system…. –Anthony Robins, The Standard 21.10.14

### radionz.co.nz Updated at 1:17 pm on 19 October 2014
Sunday Morning – sunday@radionz.co.nz
Economic crime costs up to $9.4bn
By Jeremy Rose
Economic crime is costing New Zealand up to $9.4 billion a year according to a draft Serious Fraud Office (SFO) report obtained by Radio New Zealand.

█ Listen to a full discussion of the document on Sunday Morning (48:55) {Citifleet gets a sound bite}

At the beginning of last year the then Minister for the SFO, Anne Tolley, was reported as saying that a number of Government ministries had been working for two years on a report quantifying the cost of economic crime and it would be presented to Cabinet in the near future.

But the report did not make it to Cabinet and was not released.

█ Read the SFO draft report obtained by Radio New Zealand

Radio New Zealand obtained a draft copy of the SFO’s report under the Official Information Act. The methodologies that would have made it possible to calculate the total costs were redacted.
However, Radio New Zealand has also obtained a copy of the report with the estimated costs of the various types of economic crime included – which put the total cost of economic crime at between $6.1 and $9.4 billion.
The report noted that was more than twice the combined annual budgets of police, the Department of Corrections, and the courts; more than the total net profit of New Zealand’s top 200 companies and top 30 financial institutions; or the equivalent of $2000 for every adult living in New Zealand.
Read more

[Graphic: Radio New Zealand – some estimates in the report]

****

ODT 20.10.14 (page 8)

● ODT 16.10.14 Feeley speaks up for SFO
● ODT 18.10.14 SCF witness omission puzzles

—

Posted by Elizabeth Kerr

Stuff: Dunedin council CEO won’t resign

Latest at Southland Times by Wilma McCorkindale:
03/09/2014 at 17:03

Dr Sue Bidrose said she would not follow two of her general managers out the door in the wake of the $1.5 million alleged fraud investigation.

█ http://www.stuff.co.nz/southland-times/10456244/Dunedin-council-CEO-won-t-resign

—

We all know it was never a question.

—

Posted by Elizabeth Kerr

DCC Fraud: Further official information in reply to Cr Vandervis

Following on from the previous post.
DCC has established an Investigation Steering Group (membership unknown).

—

Received from Cr Lee Vandervis
Mon, 1 Sep 2014 at 9:51 p.m.

[begins]

—— Forwarded Message
From: Lee Vandervis
Sent: Wednesday, 27 August 2014 11:09 a.m.
To: Sandy Graham [DCC]
Subject: Re: 8 x LGOIMA requests

Hi Sandy,

Thank you for responding so rapidly on the 8 questions.

To clarify, have the DCC asked for the SFO to investigate the Citifleet frauds and when, or has the SFO only been briefed indirectly by Deloittes as in answer 7?

Also, are your responses public or confidential?

Cheers,
Lee

——————————

From: Sandy Graham [DCC]
Date: Mon, 1 Sep 2014 11:08:40 +1200
To: Lee Vandervis
Subject: RE: 8 x LGOIMA requests

Dear Lee

I have followed up your question of clarification about the SFO and can provide the following response:
Under the circumstances of a suspected fraud (as per the Citifleet situation at the beginning of the investigation), the normal course of events is that the SFO is informed of issues when they arise. Deloitte did this via a phone-call to the SFO on 12 June 2014, after a discussion with DCC staff at a meeting of the Investigation Steering Group. The steering group were fully aware of the fact that Deloitte was speaking with the SFO and were informed of the outcome of the call. The call to the SFO was us asking the SFO to consider an investigation.

The discussion on 12 June 2014 (which was with a case officer and with Nick Paterson, the GM Fraud and Corruption) summarised the facts and circumstances of the Citifleet issues and sought the view of the SFO.
It is then the SFO’s decision as to whether they commence their own investigation. This is based on the criteria set out on their website (copied below)

● There are multiple victims (usually investors) of the suspected fraud

● The sum of money lost exceeds $2,000,000

● The alleged criminal transactions have significant legal or financial complexity beyond the resources of most other law enforcement agencies.

In the case of bribery or corruption matters, we focus on crimes involving public officials, which could undermine public confidence in the administration of laws

Based primarily on the fact that the main suspect was deceased and that the actions appeared to be those of one corrupt individual rather than fitting within the definition of bribery and corruption, the GM Fraud and Corruption decided that the best course of action was for Deloitte to complete its investigation and provide a copy of the report at the conclusion of its work. During the investigation and with permission from DCC, Deloitte provided an update on the investigation to SFO on 07 July 2014 via letter. A copy of the full report was provided on 21 August 2014. We have heard nothing back from the SFO to date.

As to confidentiality, these OIA replies are all able to be made public and as such they will be published on the website and I will be providing a copy of the information to all Councillors.

Regards
Sandy [Group Manager Corporate Services, DCC]
—— End of Forwarded Message

[ends]

Note: The auditors that Dunedin City Council has contracted to investigate fraud carry the name Deloitte New Zealand, or simply Deloitte. Link

—

Related Posts and Comments:
30.8.14 DCC Fraud: Cr Vandervis states urgent need for facts…
28.8.14 DCC: Tony Avery resigns
27.8.14 DCC whitewash on serious fraud, steals democracy from citizens
26.8.14 DCC: Forensics for kids
23.8.14 DCC public finance forum 12.8.14 (ten slides)
6.8.14 DCC tightens policy + Auditor-General’s facetious comments
3.7.14 Stuff: Alleged vehicle fraud at DCC
1.7.14 DCC: Far-reaching fraud investigation Citifleet
3.6.14 DCC unit under investigation
2.5.14 DCC $tar-ship enterprise
28.4.14 DCC loses City Property manager in restructuring
7.2.12 DCC ‘money go round’ embedded

—

Posted by Elizabeth Kerr

DCC Fraud: Cr Vandervis states urgent need for facts and the record to be made public

The following correspondence is reproduced in the public interest.

—

Received from Lee Vandervis
Sat, 30 Aug 2014 at 11:30 a.m.

Message: You may be interested in the following email trail, which I believe highlights a serious impediment to the cleansing process which is taking far too long at the DCC.
I am happy for you to publish.
Regards,
Cr. Lee Vandervis

[begins]

—— Forwarded Message
From: Lee Vandervis
Date: Fri, 29 Aug 2014 21:36:35 +1200
To: Dave Cull
Cc: Sue Bidrose, Sandy Graham, 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
Conversation: Recent events
Subject: Re: Recent events

Dear Mayor Cull.

Denial is not just a large river in Egypt.
You confirm the urgent need for facts and the record to be made public.

Regards,
Cr. Vandervis

——————————

On 29/08/14 2:41 PM, “Dave Cull” wrote:

Lee,
I do not believe that many of your claims below are borne out by the record or the facts and stand by my comments.

Dave

Sent from my iPad

——————————

[conversion code deleted from body text, punctuation restored -Eds]

On 29/08/2014, at 11:16 AM, “Lee Vandervis” wrote:

Dear Mayor Cull,

I believe that you have been long aware of my efforts to have Mr Bachop’s and other DCC departments investigated for the kinds of inappropriateness currently evident in Citifleet.
In particular you now know having read the Deloitte report, [and I believe have long known] that I have been calling for and instigated my own investigations into Citifleet vehicle disposals and contracting arrangements since at least 2011. I have been responding politically, then and since, to many business and individual requests and questions from, for example Turner’s Auctions, regarding Citifleet. Answers to many of my questions have been denied or not forthcoming, and the public right to know has been consequently frustrated. Your public claim that CEO Orders began the current investigative and restructuring process [by starting with DCHL?!] does not align with information I have, or with information and requests for investigation that I made to CEO Orders many years ago.

My understanding is that the Police were not moved to investigate Citifleet when contacted by the DCC over 3 months ago, even when the evidence was so tragically overwhelming that Deloittes were contracted by CEO Bidrose [costing us $200,000] to investigate. I am not convinced that Police requests for a further unspecified number of months of ‘no public comment’ is in the public interest, and my discussion with the Crown Solicitor was also unconvincing on this point.
You say below that ‘the investigation is not a process which you as a Councillor (or I) in our governance roles have a right to’, yet you have the right and have read the Deloitte Citifleet Investigation Report and made numerous public comments, and I have been denied seeing it even on a ‘grey papers’ basis and am being muzzled. Your ‘operational only’ claim is generally questionable and in this case fails on all counts.
We will never know all the facts, especially if the withholding of the Deloitte report and more public muzzling continues.
In one of your media statements you say that Council have agreed not to comment until the Police have completed their belated investigation, but this is not true. Councillors have not been given the opportunity to even discuss a further number of months of no comment on Citifleet, leave alone agreed not to comment. I have certainly not agreed and do not agree.

Thank you for acknowledging my long standing demands that DCC ‘heads should roll’. My long political experience is that timely public disclosure will be necessary to ensure that the appropriate heads are dispatched, and that an embedded DCC culture of self-entitlement across many departments is permanently erased.

Regards,
Cr. Vandervis

——————————

On 28/08/14 5:30 PM, “Dave Cull” wrote:

Lee,
The investigation that the CEO has contracted Deloittes to conduct into Citifleet is an operational matter involving, among other things, employment and potentially criminal issues. From the outset the Police, Serious Fraud Office, and Dept of Internal Affairs have been kept informed.

The investigation and subsequent internal reviews were instigated within DCC.
However the investigation is not a process which you as a Councillor (or I) in our governance roles have a right to, or responsibility for, interfering in or giving direction on, except as part of a whole of Council directive.

The investigation included the question of whether the problems uncovered at Citifleet had been the subject of previous allegations or questions, and if so, whether those had been responded to appropriately by management, including CEOs. Deloittes will report back on that.

The request not to release the report and the consequential request not to comment came not from the CEO (or me) but from Police and the Crown Prosecutor. Indeed both the CEO and I feel frustrated and disappointed as you do, that the report, which was completed only a week or so ago, must now sit under wraps for a further period.

However it is important that nothing jeopardises the ability of the CEO and police to hold people to account. You often demand that ‘heads should roll’
Your claims and demands, without knowledge of the investigation findings, could do just that: put the aims of the investigation to hold people accountable at risk.

I am not suggesting Councillors do not have the right to ask questions or make requests. What we do not have a right to do is step outside our governance roles, interfere with legitimate operational matters particularly without knowing all the facts, and unilaterally jeopardize Council and ratepayer interests. If we do we should be fully held to account for that.

Dave

Dave Cull
Mayor of Dunedin
—— End of Forwarded Message

[ends]

Note: The auditors that Dunedin City Council has contracted to investigate fraud carry the name Deloitte New Zealand, or simply Deloitte. Link

—

Related Post and Comments:
28.8.14 DCC: Tony Avery resigns
27.8.14 DCC whitewash on serious fraud, steals democracy from citizens
26.8.14 DCC: Forensics for kids
23.8.14 DCC public finance forum 12.8.14 (ten slides)
6.8.14 DCC tightens policy + Auditor-General’s facetious comments
3.7.14 Stuff: Alleged vehicle fraud at DCC
1.7.14 DCC: Far-reaching fraud investigation Citifleet
3.6.14 DCC unit under investigation
2.5.14 DCC $tar-ship enterprise
28.4.14 DCC loses City Property manager in restructuring
7.2.12 DCC ‘money go round’ embedded

—

Posted by Elizabeth Kerr

*Images: leevandervis.wordpress.com

DCC: Tony Avery resigns

Council chief executive Sue Bidrose said in the statement she had “immense respect for the honourable action Tony has taken”.

### ODT Online Thu, 28 Aug 2014
Top DCC boss Tony Avery quits over Citifleet scandal
By Chris Morris
The Dunedin City Council’s alleged Citifleet fraud has claimed another victim with the shock resignation of infrastructure and networks general manager Tony Avery. Mr Avery announced his decision to quit the council in a media statement this afternoon, saying he accepted “the management buck stops with me”. That was despite not being aware of, or involved in, the alleged fraud, or receiving information that alerted him to it, he said. Read more [comments closed, again]

● Today’s cosy news is an ODT/Ch39 exclusive – no other News Media given scoop. Tomorrow’s ODT will feature an exclusive interview with Mr Avery who says ‘he has done nothing wrong’ but he has ‘some strong things to say’ !! (ODT interview given prior to his statement, we hear)

● (Ian Telfer) RNZ News
Council manager resigns over fleet – DCC staff told this afternoon. ‘In a statement, Mr Avery said he was not involved with and did not know about the fraud, but relied on internal financial controls which let him down.’ Link (subtle dig at former CFO ?)

● (Wilma McCorkindale) Stuff via Southland Times
Dunedin council manager resigns amid fraud probe – ‘Avery, with the council since 2000, has fallen on his sword in the wake of revelation the DCC has been the victim of an alleged sizeable employee fraud within its Citifleet unit, which manages the council’s vehicle fleet.’ ‘An investigation by Deloitte was “very clear” there was nothing to indicate Avery was aware of the alleged fraud. Bidrose stressed Avery was not one of the DCC staff currently involved in employment processes resulting from the suspected activity.’ Link

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Posted by Elizabeth Kerr
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*Image: Tony Avery tweaked by whatifdunedin