New Zealand local government T-shirt #haze #corruption

Whaleoil link received.
Thu, 28 Jan 2016 at 9:10 a.m.

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LOCAL GOVERNMENT . . .
“in NZ is dodgier than a 10-month-old piece of rancid mutton.” –Slater

### whaleoil.co.nz January 28, 2016 at 8:30am
NZ drops in corruption ratings
by Cameron Slater
The Herald has asked the question of whether NZ is corrupt. Really? They don’t know? Are they surprised?
Of course NZ is filled with corrupt officials. Local Government is the worst.
Corruption is foolishly assumed by the Media Party to be extreme acts. Like someone getting paid off to make a decision that avoids due process. They have tried to lay the blame on top line government “scandals” but they are missing the point. Corruption comes in many forms.
Read more

27.1.16 Fairfax: NZ’s anti-corruption record slipping: watchdog
27.1.16 NZH: Stonewalling and strange deals: Has NZ become more corrupt?

Transparency International – Corruption Perceptions Index
First launched in 1995, the Corruption Perceptions Index has been widely credited with putting the issue of corruption on the international policy agenda.
█ https://www.transparency.org/research/cpi/

### radionz.co.nz 3 hrs ago
High-profile deals behind corruption slide – report
By Robert Smith
Controversies such as the Saudi farm deal and SkyCity’s Convention Centre mean New Zealand no longer sets the standard for integrity in the public service, as it slips down the world rankings for corruption.

New Zealand fell to fourth in the latest Corruption Perceptions Index from Transparency International released yesterday.

It has previously topped the index seven times, including as recently as 2012 and 2013, and fell two spots this year after losing the top ranking to Denmark in the 2014 list. Finland and Sweden have now overtaken it and are perceived to have less corrupt public sectors than New Zealand.
The SkyCity Convention Centre plan, the Saudi sheep deal and the Oravida affair have been cited by Transparency International as the primary reasons for New Zealand’s slide down the rankings.
The findings in the latest report have been backed up by the Public Service Association (PSA), with national secretary Glenn Barclay saying the group was not surprised by the drop thanks to a “growing lack of transparency” in the public sector.
Read more

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Related Posts and Comments:
5.1.16 Hammered from all sides #fixit [dunedinflood Jun2015]
2.10.15 DCC Draft 2GP hearings panel lacks FULL INDEPENDENCE
20.9.15 Corruption serious threat to New Zealand #CAANZ
14.9.15 Screening tonight: Paradigm Ep2 Local Government Corruption in NZ…
4.8.15 Hundreds of DCC Staff receive fraud detection/prevention training #OMG
23.7.13 Publicise: laudafinem.com
13.7.15 Jeff Dickie: Edinburgh tough, Dunedin (DUD)
17.3.15 DCC whistleblowing —what is open government ?
15.1.15 New Zealand: Salmond on abuse of democratic freedoms
19.12.14 DCC: Limited Citifleet investigation about insurance
13.5.14 Stuff: Colin Espiner usefully defines Corruption
7.12.13 Corruption in NZ Sport: Where has John Key PM been hiding ???

█ For more, [sample] enter the terms *corruption*, *delta*, *flood*, *citifleet*, *hotel* or *stadium* in the search box at right. [there are other terms, Dunedin is a clear seat of fuzzy avoidances of accountability]

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Posted by Elizabeth Kerr

*Images: (top) aliexpress.com – tshirt mickey mouse fudged by whatifdunedin | linkedin.com – corruption

DCC Citifleet: Coroner’s report out

### ODT Online Wed, 16 Dec 2015
Coroner rules on Citifleet manager’s death
By Chris Morris
The man at the centre of the Dunedin City Council’s $1.5 million Citifleet fraud took his own life after being approached about the fraud, a Coroner has ruled.
Brent Bachop, the council’s Citifleet manager, died on May 21 last year, nearly a week after first being approached about irregularities within his department on May 15.
Read more

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

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Posted by Elizabeth Kerr

DCC Citifleet: Police finishing final report

### ODT Online Wed, 16 Sep 2015
Final Citifleet fraud report not finished
By Chris Morris
Dunedin police are still working to finalise a report into the $1.5 million Citifleet fraud, despite announcing in June no charges would be laid, it has been confirmed. The development came as it was confirmed an earlier police report into the Dunedin City Council’s long-running fraud was released to media despite internal concerns from senior police it was out of date, emails showed.
Read more

● The Department of Internal Affairs was keeping a close eye on the Dunedin City Council’s handling of the Citifleet fraud investigation, documents show. (ODT)

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

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Posted by Elizabeth Kerr

Dunedin authorities blame SUNSHINE #tui

City Council BULLSHIT AND DARK DENIAL [stuff.co.nz – liquor-free zone]

Campus BULLSHIT AND SOLAR GAIN [newswire.co.nz – alcohol sales]

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Received from Ralph Light
Tue, 18 Aug 2015 at 4:45 p.m.

Fine weather could to be blame for a spike in student disciplinary cases in February and March this year, University of Otago proctor Simon Thompson says. ODT 18.8.15

Let’s blame it on the weather then shall we?

Let’s not blame the students for their excessive drinking, after all isn’t it what Dunedin is renowned for and why they’re attracted here? In fact let’s not blame them for anything when they bring $829m into the city every year.

Let’s not blame the authorities for allowing Dunedin to become so disrespected with a sum like that at stake!

Let’s not blame our city bylaws for the proliferation of liquor outlets allowed to operate 16 hours a day back then (it’s now down to 12).

Let’s not blame the Government for not auditing the $1,000 ‘Course Related Fees’ loan, that magically appears in the bank accounts of many full-time students coincidentally over this period. Let’s not blame any student for ignoring it must be paid back – Not when there’s so much fun to be had.

Let’s not blame all the bars for the feeding frenzy that ensues at this time of the year to liberate the newbies of as much of their startup cash as possible. Let’s not blame these drug dealers for successfully arguing to stay open until 3-4am to remain viable, because times are so tough.

Let’s not blame the excessive drinking that’s sanctioned by Police, University, Polytechnic, City Council and St John at the Hyde St party for setting the benchmark for partying like it (only dangerously unsupervised) elsewhere in Dunedin for the rest of the year !

Let’s not blame drunk students for their lawless behaviour when they can rest easy knowing a next day apology will suffice, because “That’s the way we’d rather deal with it.” –Simon Pickford, DCC general manager services and development (Stuff 25.2.15)

Let’s be very clear not to blame the vast majority of Otago Students who study hard, never misbehave and say nothing, as those that do —including their own Student Executive (Critic 9.8.15) give them all a bad name.

Let’s blame the weather then. Damn you Sunshine! What are we in for next Summer?

[ends]

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█ For more, enter the terms *university*, *view street*, *sunday*, *harlene*, *alcohol*, *liquor*, *publicity*, *hyde*, *party*, *octagon mud* or *student* in the search box at right.

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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 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

Code of Conduct show trial

Updated post
Fri, 27 Nov 2015 at 11:17 p.m.

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Recently, Daaave Cull – he who cannot keep a true and proper Council minute record (as the Ch39 videos demonstrate) – ran an evil-illegal ultra vires punitive Code of Conduct campaign against Cr Lee Vandervis.

Mad Hatter 30.6.15 [click to enlarge]

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Douglas Field Republished Aug 17, 2016
Mad Hatter’s ‘Show Trial’ of Lee Vandervis revised 10 7 15

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Posted by Elizabeth Kerr

DCC Citifleet COVERUP #screwy

Police have decided no-one will be charged after the Citifleet investigation. –39 Dunedin News

Read tomorrow’s Otago Daily Times.

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Only +152 city council fleet vehicles went west, car parts, tyres, kickback auto services, and just one man died.

HE DID IT. Ain’t it cosy.

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

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Posted by Elizabeth Kerr

Citifleet: ‘Checkpoint’ interviews Dave Cull

### radionz.co.nz Thu, 18 Dec 2014
Checkpoint with Simon Mercep
Report reveals how car manager ripped off Dunedin council
17:20 An investigation into the Dunedin City Council’s missing cars has named Citifleet team leader Brent Bachop (bok-ip) as the man at the heart of the one and a half million dollar fraud. A Deloitte report released this afternoon details how he transferred vehicles to his name and sold them on, including some to fellow staff and councillors. It slams the council for not detecting the fraud sooner. Brent Bachop died suddenly in May. With us now is Dunedin’s mayor Dave Cull.
Audio | Download: Ogg MP3 ( 4′ 21″ )

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Received from Lee Vandervis
Tue, 16 Jun 2015 at 10:00 p.m.

Thank you for this audio. In it Mayor Cull says that none of the managers in charge at the time of the Citifleet frauds are still at the DCC. Has he forgotten that Dr Bidrose is still there?

Mayor Cull also says that the frauds were discovered and investigated in the last year. Has he forgotten that I had discovered and was investigating Citifleet frauds since 2011, and that senior staff were prompted by me to investigate then but apparently allowed themselves to be fobbed off by the most superficial denials from some of the perpetrators themselves?

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

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Posted by Elizabeth Kerr

ORFU chairman quits —no thanks to DCC for all its help *sniff

Of course —with Professional Rugby the sense of entitlement goes a terrible long way. The Dunedin City Council, cracked and broken, has been unfairly or dishonestly “short-changed” by Otago Rugby and big brother NZRU. So too is the community of South Auckland (history: Jokers Bars, Gambling money spent out of area on Otago Rugby and Racing). What a delightful experiential and lucrative background exists to the Otago Union.

Straight up and rational, in the course of a chairman’s work, it’s simply the case that there’s been no mandate to name the rugby sponges who misused millions of dollars of public funds; although Jeremy Curragh, former ORFU change manager, suffered a moment when he was forced to blurt that a lesser amount of charitable funds had been misused by the union in yet another of its darkest hours. [enter *curragh* in the search box at right]

Nor has prosecution of ‘the deserving’ been progressed (fact), but then NZRU and DIA are fully committed to ‘looking forward’ rather than back at their contentious and damning files that might be, suddenly(!), lost or misplaced, or smoothly sealed and suppressed. That’s the political climate, nefariously yet continuously supported by a line-up of senior government ministers along with NZ Police, IPCA, SFO, the Auditor-general, and yes, the Ombudsmen.

Doug Harvie will be glad he is now (personally) out of the spotlight.
Like it never happened. Not on his watch. Like it would not in future.
A clipped accounting English.

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### ODT Online Wed, 21 Jan 2015
Rugby: Harvie stepping down after getting tough job done
By Steve Hepburn
Doug Harvie will step down from the Otago Rugby Football Union’s board with the sport in a much better position than when he arrived. Harvie, a Dunedin chartered accountant, became chairman of the newly structured board in May, 2012. He was shoulder-tapped to stand and felt he could not say no.
Harvie (57), a former loose forward for the University and Dunedin clubs, said the new board did not want to look back on why it found itself in such a tough position. It was focused on getting the business of rugby back into a good shape in Otago.
Read more

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Posted by Elizabeth Kerr

*Image tweaked by whatifdunedin

Southern complainants: IPCA won’t ensure upfront investigation #politics

The Police have joined both the Charities Commission and the Department of Internal Affairs (DIA) in picking off low hanging fruit to justify their existence. There’s no mongrel in the public service any more and all they want is the easy life. It’s why the Police love traffic enforcement, particularly speed and drink driving – so instant, so easy and oh so profitable. –Anonymous

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Southern police officers were investigated for a range of complaints, including failure to investigate, attitude/language, and inadequate service.

### ODT Online 9:20 AM Sunday Jan 11, 2015
Dozens of police faced disciplinary procedures
By Hamish McNeilly
Complaints about bad language and bullying are just some of the reasons for disciplinary actions against some Southern district police officers. Figures released to the Otago Daily Times show dozens of southern officers have been involved in disciplinary action over the past five years, with 12 officers resigning.
Read more

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IPCA: “It’s our job to keep watch over Police” !!!!

Independent Police Conduct Authority of New Zealand
Sometimes incorrectly referred to as the Independent Police Complaints Authority. The Independent Police Conduct Authority is an independent body that considers complaints against New Zealand Police and oversees their conduct. http://ipca.govt.nz/

IPCA Role and powers
The Authority has the following functions and powers under the Independent Police Conduct Authority Act 1988.
Functions: Under section 12 of the Independent Police Conduct Authority Act 1988, the Authority’s functions are to:
● receive complaints (i) alleging misconduct or neglect of duty by any member of Police or (ii) concerning any Police practice, policy or procedure affecting a complainant; or
● investigate incidents in which a member of Police (acting in the execution of his or her duty) causes or appears to have caused death or serious bodily harm.
Action on complaints: Under the Act, when the Authority receives a complaint, it may carry out its own investigation, or refer the matter to the Police for investigation under the Authority’s oversight. If a complaint is referred to the Police for investigation, the Authority will take steps to ensure that it is properly resolved. This may include directing or actively overseeing the Police investigation, or reviewing or auditing the Police investigation once it is completed. The Authority may also decline to take action on a complaint – for example, if the complaint is very minor or outside the Authority’s jurisdiction. The Authority’s powers in relation to complaints are set out in section 17 and section 19 of the Act. Read more

IPCA Vision and values
The Authority’s mission is to promote public trust and confidence in New Zealand Police. […] The Authority’s values include independence, trustworthiness, accountability, vigilance, and integrity. The Authority exists to support public expectations – as expressed by Parliament – for the justice system to be trusted and effective.
Outcomes: The Authority is funded through Vote: Justice and contributes to the overall justice sector outcome ‘A safe and just society’ and to the following three justice sector goals: accessible justice services, effective constitutional arrangements, and trusted justice system. The work done by the Authority also contributes to Police outcomes of ‘Confident, safe and secure communities’ and ‘Organisational development’, and Police values of integrity and professionalism as outlined in the Police Statement of Intent 2008/09. Read more

IPCA Accountability
The Authority is an independent Crown entity, which means it is accountable to Parliament for its use of taxpayer funding. The Authority is independent in its day-to-day operations. It cannot be told how to handle an investigation, or what the outcome of any investigation should be. However, the Authority is taxpayer-funded and it must account to the responsible Minister and to Parliament for its use of those funds. Read more

IPCA Independence
The Independent Police Conduct Authority is fully independent – it is not part of the Police. ‘Independence’ means that the Authority makes its findings based on the facts and the law. It does not answer to the Police or anyone else over those findings. In this way, its independence is similar to that of a Court. There are three aspects to the Authority’s independence: Legislative independence, Operational independence, and The perception of independence. Read more

The Independent Police Conduct Authority (IPCA) was established in November 2007, replacing the Police Complaints Authority.
The Police Complaints Authority had been established in 1989, following several years of debate about Police accountability, sparked in part by the role of Police during the 1981 Springbok Tour. Prior to 1989, complaints against the Police were investigated internally. Through most of its life, the Police Complaints Authority comprised a single person with a small number of support staff conducting reviews of Police investigations. Because of its reliance on Police investigations, the Authority was perceived as lacking independence. Recent changes, including the appointment of independent investigators, are addressing that perception.
Key milestones in the history of the Police Complaints Authority include:
● the October 2000 Review of the Police Complaints Authority by Sir Rodney Gallen, who recommended the appointment of independent investigators;
● the appointment in late 2003 of the first independent investigators;
● the March 2007 report of the Commission of Inquiry into Police Conduct, which recommended a number of changes to the Authority, including enhanced powers and improved communication with complainants;
● the Independent Police Conduct Authority Amendment Act 2007, which changed the Authority’s name and made changes to the Authority’s powers.
The period since the establishment of the Independent Police Conduct Authority in November 2007 has been one of transformation, as the Authority shifts its focus towards independent and transparent investigation of the most serious incidents and complaints. This period of change has included the appointment of additional investigators, and changes to the Authority’s legislation, structure and operations.
[IPCA History] Read more

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### stuff.co.nz Last updated 10:00 10/01/2015
‘Zero tolerance’ policy should be scrapped
By Duncan Garner
OPINION Police like to roll out statistics when it suits them so here’s one that hurts – 17 people killed on the roads during the holiday period. That’s more than double the death toll compared with last year. And it’s despite the police’s misguided efforts to target speeding drivers with the hopelessly designed zero tolerance for speeding campaign. It’s a campaign that has utterly failed. It’s a stupid policy that needs to be scrapped. Hundreds of thousands of us will have broken the zero tolerance policy over the holidays. Good on you. I did. It was safer to do so.
Read more

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### stuff.co.nz Last updated 05:00, January 11 2015
Uber taxi battle sees police vs cabbies
By Shabnam Dastgheib and Marika Hill
Police are cracking down on Uber, the cheap and trendy new-kid-on-the-taxi rank, leaving paying customers on the pavement. After complaints from the old-school taxi firms, police have begun fining the Uber drivers whose lower fares have been hurting the big cab companies. The private car hire service has hit back, lodging a complaint of police harassment with the Independent Police Complaints (sic) Authority. Uber operates as a private hire service which means the fare has to be set at the time of booking, rather than using a meter. This means Uber does not have to abide by taxi regulations, thus saving on operating costs.
Read more

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Citifleet —Related Posts and Comments:
3.1.15 DCC: Street talk NEVER HAPPENED
25.12.14 Daaave stole Christmas from #DUD
● 24.12.14 Dunedin: Watching the detectives
23.12.14 Our Leaders: if commonalities
● 19.12.14 DCC: Limited Citifleet investigation about insurance
19.12.14 Vandervis: Deloitte and Police Citifleet investigations
19.12.14 DCC Citifleet by email . . . . woops! (another timeline proof)
18.12.14 DCC: Deloitte report released on Citifleet #whitewash
24.10.14 DCC Citifleet, more revelations….
21.10.14 DCC Citifleet, undetectable….

Otago Rugby —For more information, enter the terms *orfu*, *rugby*, *racing*, *pokies*, *auditor-general*, *audit nz*, *dia*, *oag*, *sfo*, *operation chestnut* and *whistleblower* in the search box at right.

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Posted by Elizabeth Kerr

*Image: 3news.co.nz – police generic

DCC: Street talk NEVER HAPPENED

In which Dunedin ratepayer Jeff Dickie is made out to be a liar?

ODT 3.1.15 (page 30)

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Saturday night thoughts on disgrace and dark forces.

When did Cull’s highly individualised chip-on-shoulder naysaying campaign start; this would be located well outside DCC Comms’ advice, wethinks.

Nowadays, how many Dunedin ratepayers and residents are “absolutely right” in how they view Dunedin City Council and the way it is operating. Citifleet is a mighty nail in the council coffin, surely.

ONE MAN alone is not the guilty PARTY.
ONE MAN is dead.

It’s disgusting, indecent and despicable that COUNCIL leaders are preying on the deceased, at their own convenience.

2015. Let individual histories and emerging evidence tell the real story against the mayor and chief executive’s ‘party line’ for Brent Bachop.

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Related Posts and Comments:
29.12.14 DCC gets QLDC talent…. the weft and warp deviously weaves
25.12.14 Daaave stole Christmas from #DUD
● 24.12.14 Dunedin: Watching the detectives
23.12.14 Our Leaders: if commonalities
● 19.12.14 DCC: Limited Citifleet investigation about insurance
19.12.14 Vandervis: Deloitte and Police Citifleet investigations
19.12.14 DCC Citifleet by email . . . . woops! (another timeline proof)
● 18.12.14 DCC: Deloitte report released on Citifleet #whitewash
22.11.14 ODT puffery for stadium rousing ? [Sue Bidrose profiled]
21.11.14 Stadium Review: Mayor Cull exposed
● 19.11.14 Forsyth Barr Stadium Review
24.10.14 DCC Citifleet, more revelations….
21.10.14 DCC Citifleet, undetectable….
13.10.14 DCC: Consulting the Community
● 19.9.14 Chief Ombudsman Beverley Wakem to launch post-election inquiry
8.9.14 Jim Harland and the stadium MESS
3.9.14 Stuff: Dunedin council CEO won’t resign
1.9.14 DCC Fraud: Further official information in reply to Cr Vandervis
30.8.14 DCC Fraud: Cr Vandervis states urgent need for facts….
● 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)
22.8.14 DCC: Deloitte report referred to the police #Citifleet
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
● 18.6.14 Crowe Horwath Report (May 2014) – Review of DVML Expenses
3.6.14 DCC unit under investigation
2.5.14 DCC $tar-ship enterprise
28.4.14 DCC loses City Property manager in restructuring
● 20.3.14 Delta: Report from Office of the Auditor-General
24.1.14 Stadium: It came to pass… [stadium review announced]
28.12.13 Sue Bidrose, DCC Chief Executive
18.11.13 DCC: New chief executive
7.2.12 DCC ‘money go round’ embedded

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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

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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

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 whitewash on serious fraud, steals democracy from citizens

●
ORFU / NZRU
CST
Stadium / DVML
Carisbrook
Delta
Citifleet
City Property
Mosgiel-Taieri Community Board
Other
●
●

The story today at ODT, Further DCC inquiries possible amid changes – with comments off – shows up the very worst of undemocratic processes and shonky leadership coming to light at Dunedin City Council.

“The Government had the power to replace an elected council with commissioners, or appoint managers alongside, or over the top of, a council’s existing management team. Dr Bidrose confirmed the council had been keeping DIA staff informed about the alleged Citifleet fraud, as well as the council’s reform process, but there were no signs an intervention was likely.”

Be pleased with today’s ODT editorial: Disturbing ‘we know best’ attitude

Meanwhile, take a look at this NZ Herald story:
█ Council votes to sue ex CEO for cost overruns
(see Comments to article, fascinating! suing of Audit NZ and OAG pending)

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Posted by Elizabeth Kerr

Busted hacks! Media rates Cull and shiny-arsed suit brigade

Comment received.

ODT Watch
Submitted on 2013/08/06 at 2:01 pm

I see Robin Charteris, former ODT editor, has written a letter to today’s ODT concerning the proposal for a regional political party of some description. What a woeful, intellectually light letter it is too. Unbelievable for a man who once was an editor of a city daily.
He would like Ian Taylor to head it and to include Stuart McLauchlan, Dave Cull, Peter McIntyre and Richard Thomson. Talk about a less than subtle plug for the election coming up. Sorry, Robin, you have overplayed this one.

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SMELL THAT SWEET SUCCESS
The stadium, ORFU, Delta, Hillside, lack of core infrastructure investment, St Clair seawall, +$650M council consolidated debt, storm damage, multimillion-dollar cycleways, ratepayer subsidy to DVML/attraction fund, NZ Post, SH88 realignment, Invermay, centralisation of health board jobs, on it goes . . . Cull drops out of the race to take up L(l)ama farming. [Thanks, Critic]

Ineffectuals like Cull lap up the current job-loss situation, grandstanding in the pre-election period wearing nothing but dull leaden boots. Where are Eion Edgar’s ‘men’? —are they really Sir J’s scrubby old team? The club armchairs have lost their stuffing.

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### ODT Online Tue, 6 Aug 2013
Call to action goes out
By Rebecca Fox
A “call to action” has been issued to southern business, local government, agricultural and tertiary education leaders from Dunedin Mayor Dave Cull as part of the fight against job losses at AgResearch’s Invermay campus. Mr Cull has organised a “summit” meeting on August 14 to discuss the announcement proposing that 85 jobs are to go from Invermay by 2016. Mr Joyce confirmed in Saturday’s Otago Daily Times he was happy to arrange for the board and executives of AgResearch to meet local representatives and said he was prepared to meet a delegation of civic and business leaders to talk about regional development.
Read more

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Other ODT ‘bait’:
5.8.13 Call for South to form own party
3.8.13 Editorial: Time for South to fight

Related Posts and Comments:
2.8.13 DCC, Stadium —sorry picture
8.6.13 DCC electoral candidates 2013
22.5.13 Dunedin mayoralty and the Q-town heavies

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Posted by Elizabeth Kerr

*Images: odt.co.nz – Opinion 6.8.13, critic.co.nz – Critic culls Cull 5.5.13

DCC, Stadium —sorry picture

Mr Orders’ report also noted core council debt – excluding that of its companies and the stadium – stood at $227 million, and was now expected to peak at $272 million before beginning to decline from 2015-16.

### ODT Online Fri, 2 Aug 2013
More cuts needed, council warned
By Chris Morris
The Dunedin City Council is cutting its reliance on dividends from Dunedin City Holdings Ltd, but still fears being left exposed by another sudden drop in cash from its companies, chief executive Paul Orders says. The warning came as Mr Orders released his pre-election report, which also warned belt-tightening would continue as the council searched for extra savings by early next year. The council needed to cut at least another $3 million from annual expenditure to limit any rates increase to no more than 3% in 2014-15, Mr Orders said.

From the Office of the Chief Executive
Pre-election Report 2 August 2013 (PDF, 238KB)

However, the organisation also needed to brace for a dramatic hike in spending on water infrastructure renewals, which would have to rise from $8 million a year to $22 million a year by 2021-22, Mr Orders said. That was expected to come from cash, rather than borrowing, as was 90% of all council capital expenditure – helped by New Zealand Transport Agency subsidies – over the next decade, he said. That would help ease the financial pressure on the council as it worked towards reducing its debt to $200 million by 2021-22, he said. Despite that, the council could not expect to have “modest headroom” for new spending in its budget until then, meaning nearly another decade of frugality, he said.
Read more

****

PwC had given the council “supplementary information” relating to $3.7 million of unauthorised spending on the stadium’s catering fit-out. However, the council’s legal advisers had concluded “that there was no individual culpability”.

### ODT Online Fri, 2 Aug 2013
Stadium cost may blow out to $260m
By Chris Morris
Heads will not roll over the Forsyth Barr Stadium budget blowout, but the total bill could rise again to more than $260 million, it has been revealed. Dunedin City Council staff have begun collating a “comprehensive” list of stadium-related costs, spanning almost the last decade, to be published later this year. The initiative was confirmed by council chief executive Paul Orders in his pre-election report, released to media yesterday.

The arrangements had made it “impossible” to identify individuals responsible “for anything that went wrong”, Mayor Cull said. “I’m sorry we can’t get the last answers, but we can’t.”

Dunedin Mayor Dave Cull said the list would include the cost of purchasing Carisbrook, bailing out the Otago Rugby Football Union and realigning State Highway 88, among other non-construction costs. It would be up to the public to decide whether the additional bills should be considered part of the cost of the new stadium, which officially stood at $224.4 million, Mr Cull said. He did not know exactly what the extra costs would amount to, but the Otago Daily Times understands if included they would push the stadium bill beyond $260 million.
Read more

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Posted by Elizabeth Kerr

Stadium: Truth, usual whitewash or prosecution ?

Waiting for the watery blue ink . . .

This is the test of DCC chief executive Paul Orders, firstly.
The rotten council (politicians and staff), secondly.
Conniving DCTL and DCHL, thirdly.

The following item is reproduced in full, in the public interest.

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### ODT Online Sat, 11 May 2013
Council report to cover stadium review issues
By Chris Morris
One year to the day since a multimillion-dollar overspend on the Forsyth Barr Stadium was confirmed, the Dunedin City Council is preparing to reveal the lessons learned from the project. Council chief executive Paul Orders yesterday told the Otago Daily Times issues arising from the PricewaterhouseCoopers review of stadium spending would soon form part of a pre-election report to councillors.

The report – a requirement since changes to the Local Government Act in 2010 – would consider the impact of major projects dealt with by the council in recent years, and any lessons learned, he said. That would include the controversial stadium project, given the significance of the PWC report’s findings, he said. ”The PWC report was one of the milestone reports published by the council over recent years, so clearly, its significance will need to be reflected in my pre-election report.”

Mr Orders’ report would be given to councillors by August 2, and made public before the local body elections in October.

His comments came after PWC staff concluded a major study into stadium costs on May 11 last year by revealing an $8.4 million overspend, together with $18 million in interest not previously included in construction costs. The overruns, unauthorised spending and interest together pushed the total cost of the stadium up from $198 million to $224.4 million.

PWC director Stephen Drain said at the time responsibility for authorising the overspend lay with the council’s ”management executive”. Mr Orders – then only months into his new role – was asked at the time if heads should roll, but said he needed time to study the findings ”coolly and calmly”. There has been no public comment on the report’s findings since then.
ODT Link

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Posted by Elizabeth Kerr

DCHL ‘run by a bunch of fools’ -agreed

Comment received.

JimmyJones
Submitted on 2012/10/30 at 5:43 pm

DCHL is financially very sick: if it was a horse, you would have to shoot it to put it out of its misery. It is amusing to see how sensitive Dave Cull is to Lee Vandervis stating-the-bloody-obvious, that DCHL doesn’t make enough real money to pay its interest and dividends to the DCC, as well as the subsidies to DVL and DVML.
The DCC are forcing DCHL into more and more debt every year. For the 5 years that I have Annual Reports, DCHL has always paid for its distributions to the DCC by increasing their debt. Not just part of the distributions are borrowed money, but the whole amount each year.
In 2012 they added $50.3 million to their debt (page 37), so you can see that even without being forced to provide distributions of $23.2 million, it already had a severe cash-flow shortage. This negative cash-flow is the result of their own incompetence from spending very large amounts on new investments and expanding their operations. The incompetence comes from the fact that there has been no expansion in profits as a result of this low quality spending. They seem to be followers of the Homer Principle (if something doesn’t work, keep doing it), because not once in the last five years have they earned enough cash to pay for their spending on new stuff. Poor-old Dave and the new-guy, Paul, don’t seem to understand the problem. Let me summarize –

● DCHL is heading towards bankruptcy
● It is going bankrupt because DCC councillors and staff have been using it like a magic money-box where distributions are paid from debt (debt that doesn’t show up on DCC books – because of their choice)
● The LTP shows that they fully intend to continue this foolish practice, despite the DCHL Chairman’s aspirational comments to the contrary and Mayor Cull foaming at the mouth about it
● DCHL has been, and mostly still is, being run by a bunch of fools that need to be kept well away from anything financial or owned by the People Of Dunedin.

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### ODT Online Tue, 30 Oct 2012
Mayor sees red over Vandervis questions
By Chris Morris
Sparks flew as Mayor Dave Cull and Cr Lee Vandervis clashed repeatedly over debt and dividends at yesterday’s Dunedin City Council meeting. In what at times resembled a running battle, an angry Mr Cull eventually accused Cr Vandervis of giving in to his “obsession” and threatened to prevent him from speaking. The pair found themselves at loggerheads over reports detailing Dunedin City Holdings Ltd’s latest financial results and the council’s annual report.[…]Cr Vandervis attacked the figures at yesterday’s meeting, claiming the entire $23.2 million – which helped keep council rates increases to a minimum – had been funded from loans.
Read more

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Related Posts and Comments:
29.10.12 DCC consolidated debt substantially more than $616m…
26.10.12 DCHL borrowed $23 million to bail DCC
26.10.12 DCHL: New directors for Aurora, Delta, City Forests
25.10.12 Dunedin Venues Limited – 2012 Annual Report now 2 months overdue
17.10.12 The only thing up…. (for sale)
17.10.12 DCC on DCHL, subsidiaries and DCTL
12.10.12 DCHL, subsidiaries and DCTL
28.9.12 The End of The Golden Weather?
25.9.12 Cull’s state of denial…
24.9.12 DCC against imposition of local government reforms
11.9.12 Delta Utility Services Ltd
6.9.12 DCC pays out $millions to cover loss making stadium…
30.8.12 DCC seen by Fairfax Business Bureau deputy editor Tim Hunter
7.8.12 DCC, DCHL, debt, democracy (and professional rugby)
26.7.12 Cull’s council thinks $750,000 per annum to DVML…

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Posted by Elizabeth Kerr

DCHL borrowed $23 million to bail DCC

Why are the Otago Daily Times (Allied Press) and DScene (Fairfax) refusing to print the truth about Dunedin City Holdings accounts?

The $23 million that DCHL reportedly PAID as dividend etc to Dunedin City Council, is borrowed.

DCHL borrowed $23 million to bail the spendthrift DCC and make it look like we have a 5% rates increase instead of the real 25% increase without the new borrowing.

You’ll find all the details here:

DCHL Annual Report 2012 (PDF, 2.1 MB)

The ‘debt-deniers’ from DCHL are trying to characterise this year’s disastrous council-owned companies annual accounts as one of ‘ups and downs’.
ODT 18.10.12

The DCHL annual report actually shows:

● Delta business goodwill – Down
● Jacks Point/Luggate property values – Way Down
● City Forests carbon credits, log returns and valuations – All Down
● City Forests Milburn Wood Processing Mill – Down
● DCHL cashflow – Down
● DCHL profit – Down and Out and Negative: minus $5 million
● The only significant ‘Up’ is more DCHL borrowing

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Repeat:
What DCHL has delivered is another $23 million of debt which they have had to borrow against company assets because the council has already spent it.

The claim that DCHL’s borrowing to supply dividends will stop from next year is a claim with onerous consequences.

– The council’s gross spending continues unabated.
– Together, DCC and DCHL have racked up all possible debt.

Without serious moves to slash staff and shrink the number of company directors, the only option that remains is Asset Sales.

———————————————

A note on two DCHL subsidiaries

The directors of Delta Utility Services Ltd and Delta Investments Ltd are guilty of having made the decision(s) to speculate on property at Queenstown’s Jacks Point and Luggate, using ratepayer funds. No other conclusion is able to be drawn, they are all responsible. They are all liable.

The value of the properties has been written down by millions of dollars, a loss to the ratepayers who were unaware of the purchases until the deals were concluded.

This is not simply a matter of loss of ‘book value’.

The directors of the two companies had real and perceived conflicts of interest in conducting the property deals. They continue as directors with clear conflicts of interest.

The directors should be SACKED. Meanwhile, we await news of ‘board restructuring’. [see post]

DCHL chairman Denham Shale should be SACKED for misrepresenting the facts and condoning the actions of the two boards.

Who are/were the directors responsible?

Delta Utility Services Limited
[formerly Delta Energy Limited; The Electric Company of Dunedin Limited]
Michael Owen COBURN
Norman Gilbert EVANS
Ross Douglas LIDDELL
Stuart James MCLAUCHLAN
Raymond Stuart POLSON

Delta Investments Limited – property subsidiary
[formerly Newtons Coachways (1993) Limited]
Grady CAMERON [also, Chief Executive of Delta Utility Services]
Michael Owen COBURN
Stuart James MCLAUCHLAN
Raymond Stuart POLSON

Throw out Athol Stephens, DCHL Secretary, for good measure.

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Posted by Elizabeth Kerr

The only thing up…. (for sale)

Email received.

—— Forwarded Message
From: Lee Vandervis
Date: Wed, 17 Oct 2012 19:51:39 +1300
To: Debbie Porteous , Chris Morris
Cc: EditorODT
Conversation: DCHL claim of ups and downs
Subject: DCHL claim of ups and downs

Hi Debbie and Chris,

The debt-deniers from DCHL are trying to characterise this year’s City Companies Annual Reports as one of ups and downs.
Delta business goodwill is down.
Jacks Point/Luggate property values are way down.
[City Forests] carbon credits, log returns and valuations are down.
[City Forests] Wood Processing Mill is down.
DCHL cash flow is down and profit is down and out and negative.

The only thing significantly up is DCC funding requirements for the Stadium, met by significant borrowing again this year, but with a promise that the DCHL borrowing will now stop.
Without the courage to slash and burn staff costs and biff all directors responsible for scandalously speculative Jacks Point/Luggate, Wood Processing Mill etc, the only option that remains is asset sales.
Look out City Properties, Waipori Fund, Forests etc.

Kind regards,
Lee

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Posted by Elizabeth Kerr

DCC on DCHL, subsidiaries and DCTL

UPDATED POST 18.10.12

“It’s probably good to take all your bad news at the same time and look forward to the future.” -Denham Shale, DCHL

PROPERTY SPECULATION BY DELTA DIRECTORS WITH LOCAL COMPANY LINKS, IS THE MISUSE OF PUBLIC FUNDS. STOP.
GLARING CONFLICTS OF INTEREST ARE INVOLVED. STOP.
DCHL CHAIRMAN IS FULLY COMPLICIT, ALONG WITH DCHL BOARD OF DIRECTORS. STOP.
DUNEDIN CITY COUNCILLORS FAIL RATEPAYERS AND RESIDENTS SEVERALLY. STOP.

See link to ODT report added below.

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DCHL Annual Report 2012 (PDF, 2.1 MB)
Dunedin City Holdings Ltd Annual Report 2012

Warren Larsen Report (PDF, 3.9 MB)
Governance review of all companies in which Dunedin City Council and/or Dunedin City Holdings Limited has an equity interest of 50% or more.

BUT WHAT’S THE REAL STORY?

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Dunedin city Council
Media Release

Dunedin City Holdings Limited Annual Result for the year ended 30 June 2012

This item was published on 17 Oct 2012.

This past year has been a challenging year in which there has been a well publicised change in governance of the parent company. It has been a year that has been affected by a slow economy and poor export log prices and a year in which the subsidiary companies decided to write down the values of assets where impairment occurred.

Revenue has increased for the year by 3.7% to $254.9m, however, the profit has been affected by a series of factors that are fully explained in the Annual Report of the company. These factors are the effect of the Dunedin City Holdings (DCHL) group providing subvention payments directly to Dunedin Venues Limited in lieu of dividends to the Council, the effect of asset impairment provisions made by the Delta group in respect of goodwill on a number of past business acquisitions and land at Luggate and Jacks Point, pressure on margins in a slow economy, and lower carbon credit income in comparison with last year.

Separately from the activities of the subsidiaries the holding company board has been active working on a number of issues arising from the Larsen report. “Last December I stated that we have been charged with restructuring a number of aspects within the group. You have seen the recent appointment of two additional directors to the parent company board. We anticipate further announcements by year end from suggestions to be made to the Council over the next two months.” comments DCHL Chairman, Denham Shale.

“As a matter of principle, the current board has taken the view that borrowing should not be entered into for the payment of dividends. But it is important to note that much of the drop in profit last year was caused by the agreement in respect of Dunedin Venues Limited and accounting provisions rather than cash outflows. Against this, dividends in this current year will be paid from surpluses that we would expect to make over the year to June 2013. Therefore it is not necessarily correct to assume that because last year was poor that there will be no dividend this year. ”

Aurora Energy Limited has traded well although the economy has slowed the growth in the quantity of electricity carried on the network.

The NZ forestry industry has had another difficult year and, as the public is aware, City Forests Limited decided to cease operating its timber processing mill. The Milburn asset has been leased to Craigpine Timber Limited.

The electrical asset planning and maintenance businesses of Delta Utility Services Limited have operated well. But the demand for other infrastructure services weakened and company was forced to conduct a series of adjustments to reposition the company to match reduced demand. The land holdings of the Delta group, which have attracted media attention, are under close management.

The summer tourism season last year was well underpinned by the visits of cruise ships. We expect an improving cruise ship season over this next summer.

Overall passenger numbers into Dunedin International Airport were 9.9% up for the year. The operating surplus after tax achieved by the company for the year was an improvement on both budget and the same period last year. A substantial revaluation of the assets of the company has increased the carrying value of the investment in the books of the DCHL parent company.

Contact Denham Shale, Chairman, DCHL on 021 375 112.

DCC Link

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### ODT Online Thu, 18 Oct 2012
$5m loss for DCC group
By Chris Morris
A $9 million write-down in Delta’s investments – including property at Jacks Point and Luggate – is partly to blame for a multimillion-dollar loss booked by the Dunedin City Council’s group of companies.[…]Mr Shale was reluctant to criticise yesterday when asked if the property purchases had proven to be a mistake. “I wouldn’t call it a mistake, no. As we see it today, it could be called an unfortunate decision, but that is very much in hindsight. It’s very easy in hindsight.” He also saw no need for the new DCHL board to investigate the rationale behind the purchases, saying they were “a fact that’s there”. “We can’t do anything to change it.” He blamed the result on the world economy…
Read more

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Related Posts:
12.10.12 DCHL, subsidiaries and DCTL
30.8.12 Dunedin City Council seen by Fairfax Business Bureau deputy editor Tim Hunter

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Posted by Elizabeth Kerr