Carol Altmann – The Terrier

Foxy the fact checker has barged into the office, panting and sweating, with some freshly baked facts about the credit card spending of former W’bool City Council tourism head David McMahon.

Righto, Foxy, do your thing:

Fact: Mr McMahon repaid a total of $5666.85 to the WCC last year, not around $4000 as I thought from adding up the “missing” receipts released through Freedom of Information.

Fact: This is what has been repaid, not what should have been repaid. That figure is still being worked out.

Fact: This $5666.85 was repaid on Monday 5 November 2018, just six days after I lodged my FOI application with the council.

These two facts, which were released via Freedom of Information, took 5.5 weeks and $54 in fees to find out.

What other facts do you have Foxy? Cut loose!

Fact: Mr McMahon repaid the $5666.85 just a few days after a meeting with then-CEO Bruce Anson.

Fact: The council’s Audit and Risk Committee first learned of the credit card abuse when The Terrier published a story on 3 July 2019.

Fact: The Audit and Risk Committee met in November last year, the month of the repayment, but was told nothing.

Fact: Audit and Risk Committee meetings are attended by the council CEO (at that time Bruce Anson), the Director of Corporate Strategies, Peter Utri, the Manager of Financial Services, David Harrington, the Manager of Governance and Risk, Anne-Maree Neal, and an internal auditor.

Fact: On 20 November last year, after the $5666.85 repayment, the council published a six-month report into strategic risks, the chance of them happening, the impact and how to stop them. The $5666.85 didn’t rate a mention.

Fact: The credit card abuse was not reported to IBAC (Independent Broad-Based Anti-Corruption Commission) under mandatory reporting.

Fact: Mr McMahon kept his job…and his corporate credit card.

What Foxy can’t reveal is exactly what the $5666.84 was spent on, because if you are of a certain mind, it’s easy to hide such spending, especially if you know that nobody is looking too closely.

Fact: Unauthorised spending was inserted into invoices, wrapped up into “room hire”, covered up in “catering”, or buried under those two little words, “council business”.

Fact: One of the missing receipts is for a 10-course, tasting menu with matching wines that lasted four hours in a local restaurant that Mr McMahon enjoyed with a Fun4Kids supplier.

Fact: Foxy found another little receipt for $78 worth of car parking in Melbourne on Friday 12 October 2018.

This receipt coincided with the 125th birthday celebrations of St Patrick’s College Ballarat, held at the MCG, which Mr McMahon attended as (now former) secretary of the St Pat’s old boys.

Did we pay for the parking? Probably.

Is that it Foxy? You must be truly fact after uncovering all of those facts.

No? One more? Okay, spit it out:

Fact: there was a third council person at the almost $700 dinner and booze up at the Myrtle Bar and Kitchen on 18 July last year, that included five bottles of shiraz.

It was Mr McMahon.

His name, unlike Cr Sue Cassidy’s, was missing from the receipt submitted to council by City Growth manager Andrew Paton.

Well fancy that, Foxy, fancy that.

Barry the Boolshite Detector has just passed me a note:

“Bring on the Ombudsman’s inquiry, signed Barry.”

[Note: the $1476 dinner at Pippie’s was a Sister-City function for people from Miura, Japan. Money well spent? I don’t know. Cr Mike Neoh was part of that event, but says he paid $83 toward the final bill that more than covered his share. He doesn’t drink. Cr Neoh bypassed the usual slog and outlined all of this in an email, two hours after I asked him the questions last Thursday. If only every other question to council was answered as quickly and directly.]

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Carol Altmann – The Terrier

I want you to meet Foxy. I will tell you more about her at the end of this piece, but we need Foxy, because speaking up is now a crime.

If you raise your voice and shout at a Warrnambool City Council meeting, you face an $825 fine, or, to put it into council currency, one Pickled Pig dinner, six bottles of shiraz and two creme brûlées.

This is a local law that was designed to protect councillors and staff from aggression or violence toward each other, or from the public. It is now being used to shut people up.

Not all people, mind you, just the Neanderthals, as Cr Michael Neoh likes to call them.

These “Neanderthals” include the everyday people of Warrnambool who don’t wear suits and who have callouses on their hands from physical work, or tired faces from holding down two jobs while raising three kids.

According to Cr Neoh and Cr Kylie Gaston and our CEO Peter Schneider, these people now need to be shut down for shouting, like they did at last Monday night’s fiery meeting.

If police need to be called, Cr Gaston is happy to use speed dial.

And yet no police have been called by the WCC for the almost $4000 in ratepayers’ funds that were mis-spent by a former senior manager.

This man was an actual Neanderthal, but he wore a suit and was regarded as a “good bloke” by our Mayor and others while he ripped off ratepayers and bullied a string of council staff mercilessly.

Not a word was raised last Monday night about that Neanderthal’s bullying behaviour.

Instead, within hours, the finger was pointed back on the people who have had a gut full of years of waste and not being heard.

The main agitator, ratepayer Ben Blain, who was facing a fine, was loud, no doubt about it, but he was not abusive, or threatening. In fact he was pleading.

Here’s a theatrical but accurate transcript of the full exchange. Warning: contains foul language like “sack ’em” and “cheat” and “you have not got your house in order”.

——-

Lights up. Agenda Item 5.4: Council decides to increase its carbon footprint by flying 31,000km to and from Mariestad, Sweden, to learn how to reduce its carbon footprint.

Ratepayer Ben leaves his seat, walks to the front of the public gallery, his pants trembling with nerves:

(Cue loud voice….aaaaaaand action!):

“Peter Schneider was the council aware of anyone’s involvement? We have sat here and listened to the council try and hide every single cover up that has happened in this place and we are not going to take it anymore.

We are the ratepayers, we are the ones that have voted you in, and you think it is alright to sit here and lie, cheat and steal. Listen to the ratepayers.

What we want is transparency. That is what we want.

How do you think we are going to put up with this?

(Mayor Herbert: Ben, Ben, I have asked you to leave.)

How do you think we are going to put up with this?

(Mayor Herbert: Ben, I have asked you to leave.)

Have you? I am not leaving.

(Ratepayer chorus: No! No!)

Sack ’em! Sack em’!

(Ratepayer chrous: Sack ’em! Sack ’em! Sack’ em! Sack ’em!)

It is absolutely disgusting. We can’t afford to run the city with the rates we’ve got and then you want more to go to Sweden.

You have not got your house in order. How do you think the ratepayers….

(Mayor Herbert: I have asked you to leave.)

(Ratepayer chorus: Nooooo! Nooooo! Noooooo!)

(Mayor Herbert: Right, councillors, we will adjourn the meeting please.)

(Ratepayer chorus: Ohhhhhhhhhhhhhh.)

Meeting adjourned for 10 minutes while CEO Schneider spoke quietly with ratepayer who had returned to his seat.

Councillors re-emerge.

Meeting resumes and picks up again at item 5.4.

Meeting rolls on for almost another hour with a few jeers and moans and groans.

Subdued crowd reignited fully by Cr Gaston’s speech about The Terrier (aka Fox Terrier News), during which Cr Gaston reveals her preference for media that behaves like a toothless tiger, rather than a blog that bites.

Lights down. We all go home.

This is democracy in action and I am determined to keep fighting for it.

As part of that, and because Cr Gaston said she would like my fact checking to be public, I have hired Foxy the Fact Checker. She works 7.6 hours a week alongside Barry the Bullshite detector and she will have her first outing shortly.

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Carol Altmann – The Terrier

JUST IN: This is a shock – the W’bool City Council has voted 4/3 tonight to ask the Local Government Minister to look at ALL aspects of the council’s financial performance and governance for the seven years up to 31.12.2018.

Cr Peter Hulin’s motion was supported by Mayor Tony Herbert, Cr Sue Cassidy, and Cr Robert Anderson.

Such a review, if the Minister agrees to it, would be at no cost to council.

Wow. This a true win for people power. An absolute win.

Meanwhile, Cr Kylie Gaston – who voted against this move – was ropable that The Terrier was exposing all sorts of things and made sure that we knew it. My hair was on fire by the end of that blast!

In particular, my reporting on the business links between the council’s economic development manager Shaun Miller and private businessman Ravin Merchandani really grated Cr Gaston’s wick. Why?

I must be on to something, so you know what that means, don’t you? On. We. Go.

Carol Altmann – The Terrier

Today is the final episode of Season One of House of Cards meets Warrnambool City Council meets Game of Thrones, where all the lines in the ever-thickening and outrageous plot come together and I lay it all out on the table.

The opening scene in this special, double episode is yet another corporate credit card – we are now up to number four – which has the same pattern of spending on the backs of ratepayers that has become so depressingly familiar: the dinners, the drinks, the endless coffees, the lunches, on and on and on.

I have been sitting on all of this information for a very, very long time, hoping the council would eventually throw open the windows, but it hasn’t and it won’t, so I am doing it for them.

I will start with credit card #4 and a snapshot:

Exhibit A is $98 worth of drinks at the Hairy Goat on a Friday night on 21 September last year, which is around the time when, supposedly, the council was cracking down on its credit card use after “discovering” the inappropriate and over-the-top spending of former tourism chief David McMahon.

Exhibit B is a $163 dinner for two people at the Warrnambool Hotel on a Saturday night, 26 May last year, which included a dozen oysters au naturale and, wait for it, a plate of eye fillet. (Whoever gets to play the eye fillet in the eventual movie of this saga is going to become a star).

And then there is Exhibit C, a receipt from 10 December last year – after the council re-wrote its floppy credit card policy – where two people spent $105.30 on dinner at the Japanese cafe Gyoza Gyoza in Melbourne, of which $44.90 was soaked up by a bottle of pinot gris (with two glasses).

This outing was enjoyed just a week after the council decided to apply to break the rate cap and bump our rates up by 4.5% this year and the next.

What a ****** cheek.

Like you, I have had a gut full of the excuses and the ducking and weaving and hiding behind Utopia inspired spin that does nothing to comfort ratepayers that this long age of entitlement, slack governance and lack of accountability is well and truly over.

It needs to be rooted out and that’s why it’s time to name names.

Credit card #4 is held by the Manager of Economic Development and Investment Shaun Miller, he of the two jobs and who, after being named in relation to those two jobs, prompted an email from CEO Peter Schneider asking me not to name staff.

I tried that tack, but the council has done nothing since to convince me that it intends to get to the bottom of the rot which runs so deep. (#notAllstaff)

In fact all the signs point to yet another cover-up, so the gloves are coming off, because my only motivation through all of this is to expose the truth. So here are some truths.

Mr Miller travels around a lot. I can now reveal he is the mystery man who, you may recall and according to an invoice paid for by his former colleague, Mr McMahon, arrived two days early, on a Saturday, for a conference in 2017 that was held at the Flemington Racecourse which, on that Saturday, was hosting a major racing event.

A coincidence? Maybe, because our council thrives on coincidence.

Certain people don’t like me naming Mr Miller. When I wrote about his two jobs, there was a barrage of abuse and behind-the-scenes threats, perhaps because these people suspected that I knew more than I was writing about publicly. They were right, I did. More about that shortly.

I have not had any direct response from Mr Miller about his credit card use, however I did get another polite email on his behalf from Mr Schneider last Friday night, but it said nothing new and provided no explanation for the receipts above.

Mr Miller’s spending is signed off by his superior, Director City Growth Andrew Paton.

Mr Paton is the owner of credit card #3.

This is the card that was used, among many other things, to pay for the $1476 dinner at Pippies, and the $700 dinner at the Myrtle Kitchen which included five bottles of wine at $79 a bottle.

Mr Paton was very polite in his response to my emailed questions last week, but he is gagged from answering me directly, such is the council’s tight grip around the throats of those who might wish to talk to journalists.

If he could have spoken to me, Mr Paton might have explained the purpose of the boozy Myrtle Dinner which was attended by four people, including himself and Cr Sue Cassidy.

Cr Cassidy is another name that is significant to this story because Cr Cassidy is one of two councillors on the council’s Audit and Risk Committee. This committee is important because, well, it is designed to keep an eye on audit and risk, ie. the use of public money.

This is the committee that has just been put in charge of the external audit into the use of council credit cards.

You guessed it, Barry the Bullshite Detector has been having a meltdown.

So let’s paint the picture: Mr Paton is the boss of Mr Miller and was the boss of Mr McMahon and was the manager responsible for signing off on all the questionable spending on their credit cards, while at the same time using his own credit card to pay for a long, boozy dinner attended by Cr Cassidy who is a member of the council Audit and Risk Committee that will now oversee the investigation into those cards.

The House of Cards ain’t got nothing on this.

And rolling along behind the scene of this car wreck are three specific side stories that I also want you to know about.

(Intermission. Lights up. Toilet break. Grab a choc top. Right, away we go…)

Side story one: Freedom of Information. As you know, none of this – none of it – would have seen the light of day had it not been for a Freedom of Information application that I lodged almost a year ago, asking for Mr McMahon’s credit card receipts.

The council did everything it could to stop me getting that information fully and efficiently and the whole process took nine months and a lot of money (#thankyouTerrierTipJar).

Even after the nine-month wait and all that money, we would not have known about the secret repayments and behind-the-scenes deal between Mr McMahon and the then CEO Bruce Anson last November, had it not been for sources.

That whole, disgraceful cover-up was only exposed, here, in July.

And who in the council was in charge of responding to my Freedom of Information applications about the credit cards?

The CEO’s executive assistant, Wendy Clark.

So, to try and find out information that ultimately involved the actions and decisions of the former CEO, I had to go through the former CEO’s executive assistant.

And if I wanted to dive deeper and detail the tens of thousands of dollars of credit card spending on behalf of Mr Anson – he didn’t use his own corporate card to buy, for example, the cases of wine enjoyed after council meetings  – I would need to go through the same executive assistant.

Does that pass the pub test?

And just to tangle that web a little more, Ms Clark, the CEO executive assistant, is the senior staff member who has lived in a council-owned CBD apartment for more than 30 years and for most of that time has leased it on nothing more than a handshake deal.

That suspect arrangement existed until I started asking questions and learned, wait for it, a written lease had been miraculously signed just a few weeks before my probing.

This is the rotten culture I am talking about.

It stinks and it has to end.

Side story two: former tourism chief Mr McMahon was a bully and made life hell for a lot of people, especially women. He came to the council with a reputation as a bully that somehow escaped the attention of those who hired him, but which I have since substantiated.

This is how this whole story started, not from people contacting me to talk about his credit card abuse – although that was raised too – but because of Mr McMahon’s foul-mouthed bullying and a desperation to be heard, because nobody in council was listening.

I told  Cr Tony Herbert about this bullying when we met last August in the meeting that he now fails to remember much about at all. Cr Herbert did nothing. The council did nothing. #goodbloke #heLikesAdrink

Nothing happened to Mr McMahon – he stayed in his top job while so many around him fell away, distressed and exhausted, and he stayed there right up until his dishonesty around his credit card expenditure finally caught up with him last July.

How was Mr McMahon hired in the first place? Why was he allowed to get away with all that he did? And why on earth – why on earth – did current CEO Mr Schneider praise him upon his departure?

This is how the council boys’ club works and it is part of the rotten culture that I am talking about.

It stinks and it has to end.

Side story three: Mr Miller has two jobs. One is full-time with the council and the other, as I reported recently, is with a start-up called Acusensus, which Mr Miller joined in March this year as International Business Development Manager and for whom he works 7.6 hours a week.

The chairman of Acusensus is a smart, charismatic guy called Ravin Mirchandani.

Before Mr Miller joined the WCC in 2016, he and Mr Mirchandani were in upper level management at a company called Mack Valves, which makes valves for things like hydrogen pumps.

Mr Mirchandani is still the director/chairman of Mack Valves and is now also the Australian representative of a group called Nilsson Energy, based near the regional city of Mariestad, Sweden.

Mr Mirchandani became the Australian rep of Nilsson Energy after going to see its work in Mariestad in June last year and, it seems, came away very impressed.

Ten months later, in April 2019, Mr Mirchandani was part of a delegation from the city of Mariestad and Nilsson Energy that was invited to visit Warrnambool and talk about using hydrogen electricity, which is the next big thing and has companies jostling for a slice of the action.

Mr Miller was a key driver and organiser of this Warrnambool visit, which saw Mr Mirchandani share the stage at Deakin Uni with government reps.

As a result of that April trip, Warrnambool CC and the city of Mariestad signed an MOU to share ideas and information and keep the momentum moving.

Tomorrow night’s council meeting (2/9) will decide whether to send our Mayor, CEO and a council staff member – I wonder who that might be? – to Sweden to visit Mariestad before the end of the year. The public will help pay for the cost of that trip.

And this is the nub: nowhere, at no time, has there been a public declaration by the council of Mr Miller’s active business links to Mr Mirchandani and any potential conflict of interest that may arise from the Mack Valves/Nilsson Energy Australia/Acusensus connection.

In fact Mr Mirchandani’s name is missing from the list of names in tomorrow night’s council agenda of those who visited Warrnambool with the Mariestad delegation in April.

Zero transparency.

This is the rotten culture that I am talking about.

It stinks and, despite hundreds of hours of investigation into all of the issues above, I am still only just touching the surface.

Curtain falls. Lights up. Credits roll.

Credits: all of the brave people who have trusted me to tell the truth, I see you and I want to thank you. And Dad, as I write this on this Father’s Day, I see you too, even though you are long dead. My Dad was a bricklayer who got up at 5am every morning to make the money to pay his rates. I have done the best I can to get the fresh start in Warrnambool that we all deserve; it is now up to our elected officials, and our leaders, to press the reset button. On we go.

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