Credit card no 3: two dinners costing more than $2000

Excerpt: Five bottles of shiraz and eye fillet steaks were part of an almost $700 dinner for around four people, including a councillor, paid for by a WCC credit card last year.

Carol Altmann – The Terrier

Here is a story of two lavish Warrnambool dinners, held two months apart, costing more than $2000 and paid for via another Warrnambool City Council corporate credit card.

“It’s just one credit card,” Mayor Tony Herbert keeps repeating, “just one”.

No, not one. Not two. Now three, and it’s not over yet.

I have to keep rolling these out, because two months’ after the first bombshell hit, the WCC still refuses to accept it has a deep-seated culture of entitlement and secrecy that has seen questionable spending of public money for years (#notallstaff).

This time it’s a dinner at the Myrtle Bar and Kitchen last July for perhaps three or four people, including a current councillor, who between them spent almost $700 on servings of eye fillet, five bottles of shiraz (@$79 each) and more wine by the glass before things wrapped up a few minutes before midnight.

The guests, I am guessing, must have had a decent old hangover the next day.

But wait, there’s more. There always is.

Another dinner, costing an eye-watering $1476, but for more people – maybe 10 – was held at Pippies By the Bay restaurant in late May last year and included dishes of eye fillet with crayfish tail, abalone entrees, yellowtail kingfish, duck breast, fresh oysters and desserts.

The food was washed down with five bottles of wine and six glasses of champagne, with several more wines bought by the glass before everyone piled out the door and into the night.

Both of these dinners were paid for by a senior council manager using a WCC credit card and were held less than two months apart.

I don’t know what these dinners were for and perhaps they were of enormous benefit to Warrnambool, so on Monday I asked the senior manager and the councillor three simple questions:

i) the purpose of each dinner?

ii) the demonstrable outcome for Warrnambool as a result of each dinner?

iii) who signed off on the cost of each dinner?

I still don’t know the answers to those questions, but you can read the response today from the WCC media adviser in full here.

Mouth-watering eye fillet steak served with crayfish tail was on the menu for those at the May dinner. Image: Pippies Restaurant.

I don’t want to incite a riot and this is a truth I hoped I wouldn’t have to expose, because I trusted the council would be in full blown action mode by now, but it just doesn’t get it.

All the council hopes to do is tweak a few internal policies and pray the whole thing goes away: it won’t.

Because this is not about catching people breaking the law – which is what Cr Herbert fails to grasp – but exposing the steaming pile of inappropriate and unjustifiable spending that gives so little return to the ratepayer.

It’s this unjustifiable spending – via poor governance – that people want independently audited, cleaned up and cleaned out.

There was the perfect chance for the Mayor, CEO Peter Schneider and the councillors to stand before the public at at last Thursday’s emergency meeting and say we are so sorry for allowing your money to be wasted. We are on to it. We are taking it very seriously and we are doing all we can to flush it right out.

Instead, they all – bar one in Cr Hulin – behaved like kids dragged before the headmaster, twitchy and testy, as if they didn’t want to be there, because they didn’t.

Local MP Roma Britnell recently confirmed to a resident that both she and the Local Government Minister were poised to intervene: “The opportunity was provided to the city council, by both myself and the Minister, to conduct an independent review, they have chosen a certain way to proceed,” she wrote.

So the council was dragged kicking and screaming to the table and it showed.

Cr Herbert stuck to his mantra. Cr Anderson sat there and said nothing. Cr Neoh – briefly – lost his temper, while Cr Gaston stood up and announced she was “very confident” all was well.

No, Cr Gaston, all is not well.

Let’s not forget that this council first talked about breaking the rate cap in 2017, yet throughout 2018, the unbridled spending on food, drinks and alcohol rolled on.

Nothing changed.

And because nothing changed, we are now picking up the bill through higher rates.

Bottles of red wine were a feature of two lavish dinners held two months apart last year and paid for on a WCC corporate credit card. Image: A wine story.

It is outrageous and yet we know it is just one part of a much bigger picture where so much waste was and is allowed to happen.

There was nothing illegal about a senior manager buying a shed for $100,000 and the council selling it for $2000. There was nothing illegal about throwing $3 million of taxpayers’ money into Flagstaff Hill and it now costing ratepayers $750,000 a year to prop up. There is nothing illegal about building an unnecessary roundabout outside the Warrnambool Bowls’ Club where Cr Anderson is a member.

And there was nothing illegal about council staff spending hundreds of dollars on food and wine, because it was happening in plain sight and approved by those in charge.

I have now reported on three council credit card holders who have indulged in questionable spending, and there are more (#notallstaff).

If our councillors don’t know about all of this by now, then our CEO is not doing his job for his $320,000-a-year package.

I know Mr Schneider is a busy man, but he did find time to email me last week, not with any answers or insights, but asking me to refrain from naming council staff.

As a journalist, I never publish a name without it being relevant, but I will wait and see – in this case – if the senior manager and councillor involved will step out and name themselves.

In the meantime, those of us outside the tent will continue to dive deep, down to the very bottom of this culture of entitlement and waste, and use every muscle we can to turn it around.

We still have some way to go.

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WCC response to who attended two big dinners and why

A senior WCC manager paid for a $1470 dinner at Pippies restaurant last year, but who attended and why remains a mystery. Imagestock.

Carol Altmann – The Terrier

These were my questions about the two dinners:

i) the purpose of each dinner?

ii) the demonstrable outcome for Warrnambool as a result of each dinner?

iii) who signed off on the cost of each dinner?]

I will let the Warrnambool City Council response speak for itself. Here is it in full:

“We are aware you recently emailed questions relating to credit card expenditure to a councillor and Council officer.

This is Council’s response to those inquiries.

As we have previously advised, Council is fully aware of its reporting obligations to referral authorities and any actions that are required.  Those obligations are taken very seriously. The regulations around reporting responsibilities mean that Council cannot confirm whether a referral has been made and nor can Council provide publicity or commentary on the process.

The constraints on Council around the referral process have been made known to the media on several occasions in recent weeks.

The questions you have asked are also part of a current FOI inquiry initiated by you. Given these matters are yet to be finalised, it would be inappropriate to provide further detail at this time.

In addition to the above, at the recent Special Council meeting the following resolution was passed:

1a)       That Council, via the Audit & Risk Committee, immediately (Audit & Risk Committee Meeting of the 27 August 2019) engage an External Auditor to undertake an audit to review and assess the adequacy of:-

  • Existing policies, governance, reporting and investigation processes/procedures in the handling of the current credit card misuse issue that was identified in September 2018.

1b)       The scope of the audit to include:-

            SCOPE

Review the adequacy of Council policies, procedures and processes in relation to:-

  • Dealing with expenditure authorisation and delegation;
  • Trigger points for reporting (unusual transactions and/or misuse and/or fraud) to the Audit & Risk Committee (via confidentiality reports or meetings);
  • Trigger points when an auditor should be brought in (i.e. the period after unusual/misuse has been identified to when possible fraud is suspected);
  • Guidelines on “taking face value explanations” vs “appropriate inquiry”;
  • Guidelines to ensure there are procedures to mitigate and prevent the acceptance of face value assumptions;
  • Adding another layer of probity and transparency by providing trigger points for the use of an auditor.

1c)       Should the External Auditor require clarification of the scope of the audit, as outlined in 1b) then the Auditor shall communicate directly with Cr Neoh and Cr Cassidy and the Chair of the Audit & Risk Committee.

1d)       Once appointed, the External Auditor to meet, in camera with Cr Neoh, Cr Cassidy and the Chair of the Audit & Risk Committee, to outline the scope (in accordance with 1b).

1e)       That the External Auditor report directly to the subsequent (post 27 August 2019) Audit & Risk Committee Meeting or early if called by the Audit & Risk Committee Chairman.




Change up: next generation of journos heading our way

Journalist and writer Jo Chandler is leading a team of journalism masters students from Melbourne University who are heading to Warrnambool to report on climate change. Image: Joy.org.au

Carol Altmann – The Terrier

Now for a letter of a different kind.

This letter is from one of Australia’s top journalists and writers, Jo Chandler (ex The Age), who is bringing 16 of the next generation of journalists to Warrnambool next week to take a close look at climate change – the biggest issue facing our planet.

Jo is now part of the University of Melbourne’s Centre for Advancing Journalism.

How fabulous that Jo and her team have chosen our neck of the woods for their intensive investigation, the fruits of which I plan to publish on The Terrier.

Read on to see how you can be a part of it:

Dear People of Warrnambool and Port Fairy districts,

I’m a lecturer in journalism at the University of Melbourne’s Centre for Advancing Journalism (CAJ), and editor of our digital publication, The Citizen.

Next Tuesday and Wednesday (September 3-4) we will be bringing a crew of 16 masters students from our journalism program for an intensive reporting field trip to Warrnambool and Port Fairy. Our ambition is to do some deep, useful reporting on important issues playing out in your region, and also to encourage the next generation of reporters to gain skills and experience telling the stories of regional and rural communities.

In this project, our reporters will be conducting research and interviews on stories that all one way or other connect with the issue of climate change, and the impacts it is having or will have across your region and community. We’re looking at the issue from all angles – what it means for agriculture and how farmers are adapting/planning; impacts on biodiversity; implications for disaster preparedness, particularly bushfires and extreme weather events; how it will affect jobs and the regional economy; the considerations for land use planning into the future; how the community is engaging and responding etc.

The project will be overseen and edited by an expert and highly experienced editorial team:

  • Myself, Jo Chandler, lecturer and editor of the Centre for Advancing Journalism’s digital news site, The Citizen. I worked for many years at The Age and over the past several years as a freelance reporter including for The New York Times, The Guardian, The Monthly, ABC Radio National, BBC.com, New Scientist, The Atlantic, among others. You can find out more about me and my reporting archive here.
  • Dr Andrew Dodd, Director of CAJ. Associate Professor Dodd has worked across radio, television, print and online platforms for more than 30 years.
  • Jack Banister, a CAJ alumni and now cadet on The Citizen.
  • And our local project liaison partner, co-ordinator and advisor, Carol Altmann of The Terrier.

The stories we collect will be published on our digital news site, The Citizen, and co-published on The Terrier. We are also planning to co-publish some of these with mainstream publications. We have a strong track record of co-publishing Citizen reports with The Guardian, The Age, ABC Regional and other publications. You can find links to a previous rural project we did in Gippsland, which was co-published in part by ABC Gippsland, here.

Over the next week, our reporters and editors will be reaching out to people across your communities who have some insight or expertise on the issues we will be exploring. And while we’ve done our best to locate the best characters, experts and storylines to explore, we’re sure to have missed something! So please feel free to get in touch with your ideas and suggestions. And if you would like to be part of this project, or have some contribution by someone else you would like us to consider highlighting, we would also love to hear from you:

If you have any questions, please contact us. We look forward to your thoughts and ideas, and to meeting you.

Best Regards,

Jo Chandler

Jo Chandler | Professional Expert & Lecturer

Centre for Advancing Journalism

Editor | The Citizen

Published Journalism| jochandler.com.au 

I acknowledge the Traditional Owners of the land where I live and work, the Wurundjeri people of the Kulin Nations, and pay my respects to the Elders both past and present




A silent old shed speaks volumes about WCC waste

Carol Altmann – The Terrier

It isn’t pretty, but this old shed speaks volumes about the waste that has gone on within the Warrnambool City Council (#notallWCCstaff) over the past decade.

Long-time followers of this site may remember that this shed cost the council more than $100,000 in 2015: $40,000 to buy it and $63,000 to pull it down and relocate it from Wangoom Rd to west Warrnambool.

It is my understanding that it has since been sold off by the WCC for $2000.

$2000.

It has basically been reduced to scrap metal, at a loss of $101,000 to ratepayers.

That is $101,000 that could have been used far more productively elsewhere.

The back story to this shed is that it was supposed to become part of the WCC depot, but the cost of reassembling it, and its poor, rusty condition, saw that idea tossed out the rollerdoor before it had even rolled.

The condition of some of the panels removed from the former Wangoom Rd shed bought by the WCC in 2015.

The WCC tried to cut its losses early by auctioning off the shed before it was moved from Wangoom Rd, but it was passed in at $20,000 after failing to attract a single bid: nobody wanted to pay good money for a rusty old shed that would cost a mozza to move and re-assemble.

We – the poor old ratepayers – were stuck with it and have since taken a $101,000 hit.

How does this sort of waste happen? (#notallWCCstaff)

This is the question underpinning the push for a forensic look at all council spending from the last 10 years and the decision making and policies around this spending, because it is this decade of waste that is now coming home to roost.

It goes beyond the council’s 81 corporate credit cards, even though credit card spending is a full-colour, big-calorie category that leaps off the page.

It extends to rusty sheds, and roundabouts, and toilet blocks, and Flagstaff Hill upgrades, and $3 million blowouts on Liebig St, and trips to China, council marquees at the racecourse, endless conferences, blowouts on the Simpson St tunnel, the exorbitant contract to run the pound….you get the picture.

Ratepayers expect to pay rates.

But what ratepayers also expect is a clear return on their investment.

We want to see the council spend our money wisely and cautiously: every cent of it.

It doesn’t matter if the dollars are coming from ratepayers or taxpayers – it is all public money and this is why Ratepayers Victoria is taking such a close interest in what is happening in Warrnambool right now.

Ratepayers Victoria has written again to the council this week, in light of Mayor Tony Herbert saying he didn’t believe there was a need for an independent audit into the council, even though all the other councillors now agree that there should be one.

RV is joining the call for a full review of council spending, going back 10 years:

“We would respectfully suggest that unless council conduct a 10-year retrospective audit of all council staff and councillor expenditure and publish it fully and frankly then you will not sufficiently address the groundswell of community anger,” the letter says. (Read the letter in full here).

RV is spot on there.

 

At the end of the day, all ratepayers are asking for is transparency and accountability: two little words that roll off so many councillors’ tongues and turn up in so many council reports.

Transparency, accountability…and showing us value for money.

It’s not much to ask for, and the community is asking for it now.

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Emails flying as factional brawl rolls on in Liberal branch

No love lost: Former Liberal MP for south west Victoria, Adam Kempton and current Liberal MP Roma Britnell, are caught in a factional brawl.

Carol Altmann – The Terrier
Meanwhile, over in sideshow alley, former south-west Liberal MP Adam Kempton has been suspended from his own party for conduct unbecoming, or whatever the party might call it, toward sitting south-west Liberal MP Roma Britnell.
Liberal v Liberal = ah, you gotta love politics.
Adam was apparently suspended after circulating an email that contained a less-than-flattering “gif” referring to Ms Britnell’s performance as an MP. Unfortunately the email was also – accidentally – sent to Roma.
 
Uh oh. (“Back button, back button! Argh!”)
 
Adam, (lawyer, barrister, Member for Warrnambool 1983-85) declined to comment, or to confirm it was indeed he who had been suspended, but said he may comment “sometime in the near future”.
 
The local Liberal Party has a thing going on with emails at the moment.
 
As was reported in the paper this week, a printed-out email, supposedly sent between Roma and her staffer, Jarrod Wooley, was posted to fellow Liberal MP Bev McArthur (Corangamite).
 
This email contained a low-grade “death threat” toward Bev and her staffer, Jennifer Lowe, so Bev decided it needed investigating by the police.
 
Roma decided it needed investigating by the police too, to clear her name.
 
Good grief, you couldn’t make this up.
 
So senior detectives –  no less – are out with magnifying glasses and DNA kits and god knows what else, trying to work out who sent what to whom, when and why.
They admit it is going to be hard to pin anything on anyone.
I am not surprised, because the whole thing sounds like a very bad episode of House of Cards.
Let’s face it, if you are going to be making threats against a Liberal colleague, it’s probably not best to a) be a sitting Liberal MP and b) put it in writing.
 
I am pretty sure the whole thing is a load of cooked up cods, because the back story to this whole saga is there is a section of the local Liberal branch who dislike Roma very much – she was not their choice to run for the seat when Denis Napthine retired – and would rather see her replaced by former WCC councillor Jennifer Lowe or maybe current mayor Tony Herbert.
Call me conspiratorial, but all of this fake-email-death-threat stuff rose to the surface in the very week that Roma calls on the Local Government Minister to launch an investigation into governance and spending at the Warrnambool City Council.

It is a very popular move. Roma is on a roll.

What surprises me most is that some of the names swirling around this saga are the very people who would – normally – welcome such an investigation with open arms.

And yet, if they know anything at all about this whole ridiculous email caper, they are trying to undermine the very person who could help make that investigation happen.

Work that one out.

In the meantime, I am yet to hear whether the fraud police will investigate the goings on at Warrnambool City Council over the use of a corporate credit card. Stay tuned.