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.
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.
Lyndoch Living concerns amid pandemic met with silence
Questions around two people from Melbourne entering Lyndoch and a delay in the issuing of masks to all staff have failed to produce a murmur from the Lyndoch board.
Carol Altmann – The Terrier
This past week has seen two extremely serious issues arise at Lyndoch Living aged care in the face of the Covid-19 pandemic and yet the response from the board is a wall of silence.
First, Lyndoch only issued masks to all of its staff yesterday: 12 days after the Federal health minister declared masks mandatory for staff in all aged care homes in Victoria.
Second, Lyndoch allowed two people from Melbourne into its facility last Thursday and Friday, despite that city being in full lockdown and a declaration from the Victorian Chief Health Officer that, as of last Wednesday night, tightened access to aged care homes even further.
I asked the board members – chair and MPower CEO Kerry Nelson, hairdresser and W’bool City Councillor Sue Cassidy, accountant Kane Grant from Sinclair & Wilson, retired academic Rob Wallis, nursing academics Suzanne Coulson and Lorraine Mielnik, agriculturalist Ron Page, WCC manager Andrew Paton and real estate agent Percy Eccles – if they were concerned and if they intended to investigate.
Silence.
Not a single word.
I am not sure who the board represents, but it is clearly not the community.
We have not been given any explanation, or had any response to these concerns, from the CEO, the chair, or the board.
Lyndoch is community owned in theory, but it might as well be owned by Bupa.
Fortunately there are still people who will speak up for us and the most vulnerable people in our community in the face of this devastating pandemic.
South-west Victoria Upper House MP Bev McArthur said by email last night that she was “alarmed” by the allegations around people from Melbourne entering Lyndoch and would be investigating the matter further.
“There is no question that aged care facilities should have bulletproof infection control strategies, and we already have seen the tragic consequences of failures in this area,” she said.
“I will certainly contact the senior management of Lyndoch Living to ask for explanation of this apparent incident, and reassurance that proper controls are in place to protect vulnerable residents and indeed the whole local community.”
Local MP Roma Britnell was less direct. She suggested concerns about any breaches of the restrictions could be forwarded to the police.
As of today, Victoria is moving toward compulsory masks in public and even tighter restrictions on social contact and travel.
In this climate, I cannot understand why any aged care facility would be taking any risks unless it was absolutely unavoidable.
What is Lyndoch’s reasoning for its actions of the past week?
As it sits, we – the broader community – still have no answers to that question.
Lyndoch: time to speak up, step up, and pull back the power
Carol Altmann – The Terrier
The time has come to use our voices, stand up for Lyndoch and show that Warrnambool will not tolerate bullies, no matter who they are, where they come from, or what they promise.
We can’t turn away and expect the victims of this culture to fix it; they can’t.
Instead we, as a community of terriers, need to get involved, to step up and hold the Lyndoch board to account for what is unfolding on its watch.
We did this with the Warrnambool City Council credit card scandal and we can do it again.
Some of Lyndoch’s most senior and experienced staff are among the 70 to 80 people who have left in the past two years and the resignations just keep coming, yet the board remains silent.
If this was happening in a primary school, or our hospital, or inside TAFE, it would be front page news.
So would some of the decisions around the use of public funds.
Core business: This photo, recently posted on the Lyndoch Facebook page, shows the worn condition of some of the specialised furniture used by residents. (I have pixelated the image for privacy).
As it stands, Lyndoch Living – as a registered charity – has spent more than $100,000 on gambling via sponsoring a steeplechase and hosting a corporate marquee at the May races, and somehow this passes as core business.
We also know that Lyndoch plans to spend millions of dollars to build and run a new medical centre that nobody has asked for, while at the same time it doesn’t have enough experienced nurses to fill shifts, and basic furniture needs replacing.
Enough.
I am unable to look on while personal power trips are pursued at the expense of Lyndoch staff wellbeing and, ultimately, the care of our elderly.
So this is what we can do:
– contact the board: chair Kerry Nelson (knelson@mpower.org.au) or any of the other board members: Andrew Paton, Cr Sue Cassidy, Ron Page, Percy Eccles, Kane Grant, Peter Downs, Suzanne Coulson and Lorraine Mielnik via a letter to Lyndoch Living, 10 Hopkins Rd, Warrnambool.
– ask the board about staff morale, staff resignations and Lyndoch’s core priorities;
– contact our local MP Roma Britnell (roma.britnell@parliament.vic.gov.au) and ask her to investigate, just as her Liberal colleague Cindy McLeish did in response to the troubles at Seymour Health;
– write a letter to the editor of the local newspaper which, unfortunately, no longer does investigative journalism;
– most importantly, become a member of Lyndoch: it’s free to apply, can be done by filling out a simple form, and means you can have a say on where Lyndoch is heading and who is in charge.
At the moment, Lyndoch has very few members, including the nine people on the board, two life members (Ron Patterson, David Atkinson), the CEO Doreen Power, and four senior staff.
It’s a tight little shop.
Core business: Lyndoch company secretary Lyanne Vinecombe, board chair Kerry Nelson, CEO Doreen Power and Director of Nursing Julie Baillie all flew to Sydney to see Ms Power receive an industry award. Image: Lyndoch Living.
Under the new rules of Lyndoch (last year it changed from an association to a company limited by guarantee), these members have significant powers, including standing for the board, voting for the board, and being involved in the AGM.
In fact, unless you are a member, Lyndoch has no obligation to even tell you when the AGM will be held.
But here’s the rub: the board gets to decide who can become a member of Lyndoch, so even if you apply, you may not be accepted.
It’s open to all sorts of manipulation and perhaps explains why the current board is such a curious mix.
There are no GPs on the board. There is no lawyer.
But there is the former CEO of the Warrnambool Racing Club, Mr Downs, who now lives in Melbourne and works for Moonee Valley: if that’s not a massive conflict of interest between the board and Lyndoch’s support for racing, Barry the Bullshite Detector and I will run three times around the racecourse.
(Actually, Barry, we will need to do four laps, because Ms Power and Mr Downs also have shares in a racehorse.)
The Lyndoch company secretary – a former PA to Ms Power – also has no accounting or legal qualifications, despite now monitoring a multi-million-dollar organisation.
From all the evidence, none of these people in charge are asking the hard questions about Lyndoch’s operations, or none are asking them publicly.
Core business: CEO Doreen Power and board member Cr Sue Cassidy enjoying drinks in the Lyndoch corporate tent at the May Races with tourism head, Liz Price. Image: Lyndoch.
Cr Cassidy, for example, has gone from being a power house to a mouse. The bold woman who stood up and exposed the games behind the council mayoral race has nothing to say about Lyndoch. She won’t return my calls.
Chair Kerry Nelson? Not a word.
They are supposed to be our eyes and ears, yet all we have is silence.
To me, the entire Lyndoch board and senior executive are accountable for the distress of every single Lyndoch person who is suffering or has suffered.
So I am going to keep exposing what I know, and I am going to also apply to become a member of Lyndoch, although I doubt I will be accepted, even though my mother was in Lyndoch for 10 years, and my late Dad, as a bricklayer, helped build some of it.
Warrnambool people started Lyndoch, we still own it, and we all have a stake in caring for its residents, its staff and its future.
What started as an important story for me is now a campaign – unashamedly – to restore a bold community voice inside Lyndoch and to stand up for those who need us to be strong.
Lyndoch board: Seymour sounds a warning on staying silent
One of the many letters written to the local newspapers about the crisis at Seymour hospital that came to a head during the tenure of former CEO Doreen Power.
Carol Altmann – The Terrier
If we need a canary in the coal mine about what is unfolding at Lyndoch Living, it’s what happened at the Seymour hospital earlier this decade.
Seymour hospital was plagued with problems in the early 2000s, with a string of doctors resigning, a loss of birthing services, a dysfunctional board, and four official inquiries into the mess in less than two years.
Into this crisis came Doreen Power, who was appointed CEO of Seymour Health in 2007 and left in 2012, during which time the hospital saw many changes and the small town of 7000 people virtually imploded.
Ms Power, who is now CEO of Lyndoch Living, was hired by the Seymour hospital to get things done and she did: birthing services were resumed, the doctors came back to work, and the hard-working staff at the hospital continued to provide the best services that they could.
But behind the scenes of all this “success” was a human train wreck of broken, dis-spirited people, many of whom were allegedly treated so appallingly that they are only just starting to recover and some say they never will.
A record crowd poured into the Seymour football clubrooms in July 2012 to hear what would be done about multiple problems at the hospital.
I have spoken to many people from Seymour about this period and the same stories are repeated over and over:
staff being bullied, losing their jobs for no reason, being “marched off the premises” without warning, hounded over minor issues, feeling disempowered, afraid, depressed and having “nowhere to turn” because the board either wouldn’t listen, or wasn’t told.
“People became severely depressed and traumatised and felt there was nobody who could help them,” said one Seymour woman who spoke on the condition of anonymity.
“There was a sense the board had been hand-picked and they wouldn’t help. You were told if you approached the board, you would be dismissed…if you wanted to keep your job, you had to shut up.”
In desperation, some staff organised a Seymour version of an underground resistance by wearing green ribbons to work as a sign that they were a “safe” person to approach if you were being bullied.
Can you imagine?
The terrible reality for these Seymour staff is nobody from the hospital board stepped up, staff were too scared to speak up, and the damage rolled on until the wider community was alerted to what was happening.
A portion of the anonymous letter drop sent to residents of Seymour in 2012.
An anonymous letter drop was circulated throughout Seymour in early 2012 and local state MP Cindy McLeish, now deputy Opposition leader, was bombarded by people pleading for her to intervene.
Ms Power resigned as CEO in May 2012, just two months before Ms McLeish organised a public meeting that was held in the local footy clubrooms before a capacity crowd of more than 300 people. Nobody from the hospital executive showed up.
Neither Ms Power or the executive, however, escaped the wrath of the crowd.
“The meeting saw pent-up community frustration released about perceived high staff turnover at the hospital, allegations of bullying, a “toxic” workplace, former chief executive Doreen Power and the change from a community hospital to a ‘bean counter mentality’ among other things,” the Seymour Telegraph reported.
Seymour GP Dr Elliot Jarman was among the passionate speakers in the audience. He was quoted by the paper as saying:
“Over 25 years Seymour Hospital has evolved to provide first-class services. I’m proud of that. What I am not proud of is staff absolutely in tears, intimidated…what’s happening is (wrong).
“I’ve been to the courts, I’ve been to Worksafe…(they’re) unable to help. I’ve been seeing patients and my fellow colleagues in tears. It’s just not right. Our services are being damaged by the current management style.”
Another Seymour GP, Dr Rob Peterson, told the meeting that three core issues needed to be addressed immediately: improved communications from the board to staff, allegations of bullying, and low staff morale. Bang, bang, bang.
By the time of the town meeting, it’s understood up to 50 staff had left the hospital, either from being pressured or being fired, and a string of Fair Work claims that followed – I believe up to 14 or 15 – have only recently been finalised.
“It broke this town and I don’t think it has ever fully recovered,” said one Seymour source.
Seymour ultimately had an intervention, with a ministerial appointment made to the hospital board to report back to then Health Minister David Davis.
By the end of 2012, the hospital chair had resigned and most of the executive team had been cleaned out after their positions became untenable.
As a local blogger, Seymour Dreaming, wrote: “why has the board been conspicuously silent when the community expressed concerns over controversial events for which is was ultimately responsible?”
Why indeed?
And then this, a heart-felt letter to the paper from resident, Janet McKenzie, which says it all:
“The (hospital) board…and past and present executive staff need to be accountable for the shame, hurt, stress and humiliation that has been placed on these staff and their families.
They deserve so much better treatment, as do volunteers who have so generously given their time…
These staff and volunteers must receive an unconditional apology and compensation/reinstatement for the treatment they have received at the hands of (the hospital).
It is not acceptable that is ignored as these are staff and volunteers who have given many years of unblemished, caring and passionate service..
Finally, I, like many other family members of the above staff will be there to give support, assistance and much needed emotional care to those that the (hospital) has abandoned.”
The canary is coughing at Lyndoch Living and I hope the board is listening, because this management style hasn’t happened just once before, but twice.
Next: Plenty Valley.
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Carol Altmann – The Terrier
