Ombudsman: $700 dinner a “shock” to manager who paid

Carol Altmann – The Terrier

More on the Ombudsman’s report: The Myrtle Bar & Kitchen.

Readers will recall the story on The Terrier about the almost $700 dinner held at the Myrtle Bar & Kitchen and attended by City Growth Manager Andrew Paton, David McMahon, Cr Sue Cassidy and the head of the Great Ocean Road Regional Tourism authority.

This dinner was paid for on Mr Paton’s credit card and included five bottles of shiraz.

Here is what Mr Paton has told the Ombudsman by way of explanation:

“When the evening finished and we settled the bill, I looked at the bill and I was shocked by it. My initial thought was to query it, and then split the bill; and I didn’t do that, and, and I regret it.

“So I can see what that looks like, it’s about, oh we’re building a relationship with GORRT (Great Ocean Road Regional Tourism) by wining and dining them, and I get that, totally get that perception.

“But the picture for me and how I rationalised it, was the outcomes that I got from that discussion, that on balance I had good outcomes, but it didn’t meet my personal standards.

“That dinner with Great Ocean Road Regional Tourism delivered some good things, but there are some things that could have been done better that I regret.”

—-

I wonder what the “outcomes” and “good things” from this dinner were – wouldn’t it be great to see a public report!

The Ombudsman records that Cr Sue Cassidy last October voluntarily repaid $200 toward this bill after she regarded it as “excessive”. I guess that’s something.

On a similar note, the $1476 dinner held at Pippies By the Bay Restaurant in May 2018 – reported as part of this same story – has led to greater restraint on Sister City functions.

In 2018, it was “free reign in ordering”, so of course everyone went for the lobster and abalone.

As the Ombudsman reports: “(this) did not meet community expectations and it (the council) has taken steps to allocate a moderate per head allowance to these meals”.

All of which reminds me of the line I wrote in that original story:

“…this is not about catching people breaking the law…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.”

I have to say I am feeling a little emotional as I write all this, knowing that this has now all been exposed after a true team effort, and change has come as a result.

It has been a long road.

More soon.




Ombudsman reveals shouting the bar, at ratepayers’ expense

Carol Altmann – The Terrier

More from the Ombudsman’s report: “Room Hire” #2.

Terrier readers will remember this “Room Hire” at the Lady Bay resort was one of two in the same week, in September 2018.

As with the one I just posted, this “room hire” was another cover up for a night of boozing, this time after a Great Ocean Road tourism dinner hosted by the WCC.

The function was legitimate, the booze up afterwards at our expense – $434 worth – was not.

Here is what City Growth Manager Andrew Paton had to say:

“I wasn’t aware of any alcohol to be paid, certainly wasn’t aware of this list, it’s the first time that I’ve seen this list. I’m shocked. So, $434 of alcohol that we don’t know who was consuming.

“It wasn’t for everyone at the conference, because VTIC paid all the costs. Wow. There was no communication to me that that alcohol was going to be funded by Council. I had no visibility of it. ”

“Wow” is an understatement.

Here is what Mr McMahon, who put the bill on his credit card, had to say:

” …what each LGA would do is pay for after the function drinks basically. So, the receipt for VTIC was for effectively the bar tab.

“It was drinks after they finished … We were in a room. And then we moved out of that room to the bar. And then I paid for that …

“It was what I was asked to do, the expectation of us hosting it.”

Two very different versions of the same event.

I am so grateful to the Victorian Ombudsman and her incredible team for ensuring the truth is now out there.

Their hard work has exposed the answers that we were denied.

As I wrote at the time, we were not expected to find out any of this, but fortunately through the work of The Terrier, whistleblowers, Freedom of Information and all of those who spoke to the Ombudsman’s investigation team, the truth is now surfacing.

More to come.




Ombudsman reveals huge drinks bill hidden behind “room hire”

Carol Altmann – The Terrier

More from Ombudsman’s report: ROOM HIRE #1:

At last we know the truth behind the first of two “room hires” at Lady Bay Hotel, this one on 6 Sept 2018.

The ‘room hire’ was not room hire at all, but in fact an unofficial thankyou party for a council staff member, organised by former tourism head David McMahon and paid for on his credit card.

The invoice was a foil to hide a drinks bill of $538.50 that included three bottles of red wine for a total cost of $325. (Food made up the total bill of $736.50).

According to the Ombudsman’s report, City Growth Manager Andrew Paton and Director Corporate Strategies Peter Utri both attended this function and offered to pay their share as they did not consider it work related.

Mr McMahon had a different view: ” I can’t speak for them, but I went there under the full knowledge that this was a work ‘thank you’ function. I don’t remember anyone having a discussion …”

Mr McMahon’s lawyer had a similar view and told the Ombudsman’s investigation:

“[David McMahon] was asked to arrange a thank you dinner by his employer for a staff member. There was never any discussion about payment. His employer attended the dinner. There was no offer to pay or contribute to the bill.”

The second “room hire”, as it turns out, was also a euphemism for a huge drinks bill.

I will post that in a moment.  (My head is swooning at the lies.)




Ombudsman’s report into WCC credit cards exposes largesse

Carol Altmann – The Terrier

JUST IN: The Victorian Ombudsman’s long-awaited report into credit card use and misuse at Warrnambool City Council has just hit the decks.

You can download the whole report here and I will run updates as I pick through it. This is the first instalment.

The bottom line to this 10-month Ombudsman’s investigation is that Warrnambool ratepayers can now take much greater comfort in knowing that every cent spent on a WCC credit card will come under much greater internal scrutiny.

As we know, this whole scandal revolved around not only blatant and unauthorised largesse by one individual in former tourism manager David McMahon, but the spending by several others that was permissible under the council’s then policies and rules.

This is part of the Ombudsman Deborah Glass’s eloquent summary:

“The conclusion of this investigation is that while there is evidence of lax practices by staff and poor judgment by some in senior management, credit card misuse was not widespread.

“Serious misuse was limited to one individual, although the level of abuse was greater than had been exposed or admitted to, in some instances also suggested a deliberate intention to deceive.

“The people of Warrnambool do not expect their hard-earned payment of rates to be funding espresso martinis, travel to Melbourne coinciding with football games, spa resort massages for family members, or hundreds of dollars in alcoholic beverages, described on the invoice as ‘Room Hire’.

But while the individual no longer works for the Council and has repaid the money, the damage has been done.

‘Senior management could and should have done more at the time the misuse was first exposed in 2018.

‘Although this inaction was neither dishonest nor systemic, it gave raise to the impression of a cover-up.

‘The then CEO told us he ‘would have dealt with it differently had the full picture been known at the time – an important, indeed painful lesson that integrity rules exist for a reason.

‘The impression of large numbers of snouts in the public trough was also exacerbated by overly generous hospitality policies.

‘It was understandable that Council should wish to support local traders affected by the city centre construction works. But to an observer, the holding of meetings by Council officers in local cafes and restaurants was no different from the staff going out for lunches and coffees on the public purse.

‘Combined with lax adherence to processes and insufficient oversight by some, it is not surprising these public displays of eating and drinking gave rise to the impression they apparently did.

‘Policies and guidance have since been tightened, external audits and reviews are being implemented and fewer credit cards are now in use’.”

The report goes on to make three recommendations:

the council consider referring Mr McMahon’s actions to the police;

the council reconsider the number of credit cards in use and the rationale of the issuing of the cards. (There were up to 93 cards in use in 2018-19, it’s now down to around 70.) and;

Implement the recommendations of the two audit reports and report back to the Ombudsman within six months.

 

There are a number of interesting revelations that start to answer some long-standing questions, including:

Mr McMahon repaid $5666.84 on Nov 5 and was given a first and final warning from then CEO Bruce Anson.

Mr McMahon also handed in his credit card. On 20 December, however, City Growth Manager (and Mr McMahon’s boss) approved Mr McMahon’s request to have his credit card back.

After a series of exclusive stories published by The Terrier last July, Mr McMahon met with the new CEO Peter Schneider and admitted further unauthorised transactions. He repaid another $3071.73 and handed in his resignation. Mr Schneider referred the matter to IBAC;

The curious receipt for “room hire” at the Lady Bay hotel on 10 October 2018 that cost ratepayers $736.50 – was an unofficial thankyou dinner for a colleague attended by Andrew Paton, Peter Utri, David McMahon and others.

Drinks at the infamous Cape Schanck tourism conference in July 2018 – the knees-up that started this whole investigation – included 34 espresso martinis at $18 each and a single shot of Sullivan’s Cove American cask whiskey for $38.

No wonder this whole saga has left ratepayers – and the council – with a massive headache.

More to come.




Taking a stand: “But Carol, where will it end?”

No small irony: Large posters promoting the #16Days of Activism to end violence against women on prominent display at the Lighthouse Theatre, Warrnambool, which also houses a Rolf Harris mural.

I met two unforgettable people last week while collecting signatures to erase the mural by sexual predator Rolf Harris at the Lighthouse Theatre in Warrnambool.

Both of them, one a man, the other a woman, were survivors of child sexual abuse and were, as they described it, “finding their voice” to talk about such a personal atrocity and do everything they could to ensure that no other child would suffer what they had.

They talked quietly, often looking into the middle distance, because the middle distance is a safe space when re-visiting a place of such hurt, such confusion and such silence.

The silence. The being told – constantly – that you must not say anything, that you must not cause trouble, that you must not ruin things, or make things uncomfortable for others by speaking up and out.

But as the man said to me, “you just want to be heard and for someone to do something”.

He was doing something.

That very day as he signed the petition on a wobbly card table on the Civic Green, the Royal Commission into Institutional Responses to Child Sexual Abuse delivered its final report.

This was a devastating report that has been five years in the making and to which this man had given hours of evidence.

Despite having made a contribution to this highest level of investigation, this man still turned up during his lunch hour to sign a little petition to remove a small mural in Warrnambool because he is not done yet.

None of us should be done yet.

And this was how the woman who told me her story, a story she is only now starting to fully articulate, went from talking to me about why removing the Rolf Harris mural didn’t really make a difference, to deciding that it did.

She had come to the Civic Green not to sign the petition, but to explain why she felt covering it up was enough.

We talked about the symbolism of covering things up, about the hard-to-hear argument of separating the sexual abuser from the person, and about this mural – this mural – being a chance for our council to follow the lead of others who painted over their Harris murals right after his conviction two years ago.

After 20 minutes or so she said “I am going to sign”, and she did.

These are the strong faces I see in my mind when people roll out the arguments as to why the mural must stay.

“But Carol, where will it end?” they say.

Apparently if we erase a Rolf Harris mural in Warrnambool, soon we will be pulling down churches and trashing Caravaggios and banning people from watching films and throwing  all manner of books, artworks and music onto a giant pyre, because if we don’t, well, we are being insincere and inconsistent.

Ironically, this fear-mongering and muddying of the waters is what the “yes” voters endured during the same-sex marriage debate.

A simple question – can two people of the same sex marry – descended into a frenzy about ending freedom of speech, people marrying goats, and children being taught in primary school how to use sex toys.

If you said yes to same sex marriage, you were saying yes to all these things too – get it?

Fortunately most of us in Warrnambool were smarter than that.

But we, as a city, own a Rolf Harris mural and it is through this mural we can again make and take a stand. We must make a choice. We either own it fully, and pull down that Perspex, or we roll over it as a symbolic gesture that we stand with survivors 100 per cent: not 50 per cent or 20 per cent.

“But Carol, where will it end?”

Well, I can tell you that for the survivors of predators like Rolf Harris, who use their power and position to abuse children, it never does.

And as the women and men now speaking out around the globe have shown, we are not done yet.

In fact we are just getting started.

The physical petition has closed with more than 100 signatures in five days, which was my goal. The online petition also closed on Wednesday 13/12 at 9am.

The petition will go to Warrnambool City Council for consideration at its first meeting for 2018 in February.