Carol Altmann – The Terrier

This Lyndoch Living story has gone to places that I never expected it to go and that includes wading into the work history of CEO Doreen Power which, to be frank, is why I am so troubled by what is unfolding here.

I will write more about Ms Power’s back story in the near future, but for now I just want to lay out the context for my concern and why I am latching on to this story for the long haul.

In the seven years before Ms Power became CEO of Lyndoch in December 2014, she held three senior positions:

First as CEO of Seymour Health for almost five years before resigning in May 2012 in the face of a virtual uprising by the small town of 7000 people.

Then as CEO of Plenty Valley Community Health for less than two years, before an interim CEO was appointed in December 2013.

And, lastly, working briefly as Director of Nursing at Tweddle Child and Family Health Service until that role was taken over by another person in February 2014.

I have spent many hours researching and talking to people about Ms Power’s time at Seymour and Plenty in particular and a disturbing pattern has emerged, one which I believe is being replicated at Lyndoch:

– a culture of bullying and dismissal

– extremely low staff morale

– a compliant board or attempts to create one

– an impact on residential care and services

– a culture of secrecy and a lack of transparency

 

Journalists, I can tell you, don’t have either the time or inclination to go digging into people’s work history unless it is relevant to a story unfolding now.

Ms Power’s back story is absolutely relevant and it is why I am committed to writing all that I know – based on a huge amount of research and dozens of interviews – because you need to know.

We need to know because Seymour Health and Plenty Valley Community Health, in particular, are the red flags.

Both took years to recover.

Thanks to your help, I am going to pick apart what is happening at Lyndoch – all of it – because Lyndoch was set up by the community, to care for some of the most vulnerable in our community. Full stop, end of story.

Over the coming weeks, I am going to write about:

where Lyndoch is heading, its priorities, the breaking down of resident care, its venture into building and running a commercial medical clinic, who is paying for what, who is running what, who is in charge of what, whether Lyndoch is still primarily a charity and public benevolent institution, how the board is handling complaints, the change of the Lyndoch constitution, how the board is chosen, how the public can become members, the lack of transparency around its full financials, its support for gambling via a horse race, other sponsorship deals, potential conflicts of interest, who is involved in the new company Lyndoch HealthCare, and anything else worthy of forensic examination.

I will also be telling you much more about Ms Power’s time at Seymour Health, and Plenty Valley Community Health, and explore how she became employed by Lyndoch.

It’s going to be a long, slow haul, but it is an essential one.

It’s going to be tiring work, but we have done this before, you and I – the terriers and The Terrier – and we know we can make a difference.

We can be a voice for the workers (past and present) and the residents and for the Lyndoch we know and love, and together we can step up to where the majority of the board seemingly refuses to go.

If there is one thing I have learnt from my research around Seymour and Plenty Valley, it is that we need to start now.

Strap yourselves in and on we go.

More soon.

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Carol Altmann – The Terrier

My team of trusty terriers tell me Lyndoch Living is stitching up a deal with the Warrnambool City Council to take over a piece of prime public land: the Scoborio Reserve on the Hopkins River.

Scoborio Reserve sits off Hopkins-Otway Road between Lyndoch and Proudfoot’s Boathouse, part of the Peek Whurrong lands, and covers almost 3 ha of prime waterfront real estate.

This is public space.

As we know, Lyndoch Living is in the throes of rolling out a $100 million masterplan over the next eight years, but there has been no mention publicly – so far – of Scoborio Reserve being a part of the mega expansion.

The elected councillors have also not had any recent briefings about the proposal.

Despite this, I have now had three good sources tell me that, behind the scenes, discussions between Lyndoch Living, the WCC officers and Mayor Herbert are well advanced and that a formal proposal is being put together.

Cr Sue Cassidy is on the Lyndoch board, so I can only assume that she would also be well across any Lyndoch plans to expand into public space.

The council’s City Growth Manager Andrew Paton is also on the Lyndoch board.

The official line from the council today is that “council has not received any formal request from Lyndoch Living in relation to acquiring any part of Scoborio Reserve”.

Read that sentence very carefully.

“Any formal request” does not rule it out. It just means that it is not in writing, yet.

In fact what happens these days with so many council decisions is that deals are all stitched up behind closed doors and we, the public, are left to play catch up.

Instead of being included in the process from the start, we are left to fight it at the end.

There are six things that make me think this Lyndoch deal is real:

the sudden desire by the WCC to formally name the unnamed road that services the Scoborio Reserve. This could be a coincidence, of course;

the council also saying it received a suggestion (from who?) that the road be named after George Rolfe, who once owned the Lyndoch land;

suggestions that Lyndoch has been interested in building a childcare centre next door to the aged care home;

that this centre would be run by a private operator;

Cr Herbert’s belief that the council should not be in the business of running childcare centres and they should be privatised;

that the council is now in the business of trying to sell off public spaces: just ask the good people of Swan St, who this year had to put up a fight to save their patch of green space.

 

The word “public” is fast losing its meaning in Warrnambool.

This is public land. It is a reserve. It should not be for sale, “gifted”, or given away for virtually nothing.

We are watching.

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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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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.

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.

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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Carol Altmann – The Terrier

Tonight I start drilling into the detail of that big fat spending on one Warrnambool City Council corporate credit card and who is supposed to be keeping an eye on things.

Because, as it turns out, three of the people who are supposed to be keeping an eye on things have also been sitting at the very tables where the breakfasts and brunches have been served.

This includes Mayor Tony Herbert.

And it includes City Growth Manager Andrew Paton, who is designated to scrutinise and authorise spending on the credit card held by Visitor Economy Manager David McMahon.

Both of these people – Mayor Herbert and Mr Paton – are on a council tourism committee (VEAC) with Mr McMahon, with Cr Herbert as co-chair.

Cr David Owen was also on the committee.

As a result of Freedom of Information and cross-checking, I can tell you that this committee held every single one of its meetings in 2017 and 2018 over breakfast at either a café or restaurant.

And, you guessed it, each time the bill was paid with Mr McMahon’s credit card.

 

And each time that bill was well over $100: a $165 breakfast at the Pavilion, a $161 breakfast at the Mid City Motel, a $133 breakfast at Brightbird, another $112 meeting at Brightbird…

VEAC is the only committee of the council’s seven advisory committees to do this.

All the other committees hold their meetings in council offices, probably under harsh lights and over a packet of assorted creams.

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

According to the documents released through FOI, Mr McMahon also wrote “VEAC” on a string of receipts that have nothing to do with VEAC’s official meetings.

In terms of accountability, this is the most worrisome. 

 

When VEAC meets, it has to take minutes and these minutes are reported to council: those are the rules set out in its terms of reference.

Yet Mr McMahon’s receipts show claims for a string of “VEAC” breakfasts and brunches for which there are no minutes, or any public record at all that I could find.

Perhaps this is because most of these meals were enjoyed in the summer holiday period and so maybe everyone was wearing shorts and nobody had a pen.

As a result, we have no idea why the gathering was held, who was there, or what was discussed.

 

These five summer gatherings included:

a $154 breakfast at Main Beach Kiosk on 21 December 2017,

a $51 lunch at The Pavilion on Wednesday 3 January 2018;

$13 spent at Fishtales on Saturday 6 January 2018;

an $80.50 brunch at The Pavilion on Friday 12 January 2018 and;

a $102 breakfast at Clovelly Restaurant on Thursday 15 February 2018.

Boy, that is one very enthusiastic committee, which it isn’t, because it recently fell over and pretty much had to start again, but that is another story.

Of the above, one receipt in particular leaps off the page: the $80.50 spent at The Pavilion on 12 January 2018.

This $80.50 brunch was held during school holidays and included a kid’s pancake and two milkshakes: one caramel, one banana. In the absence of any further explanation, make of that what you will.

For other meals, there was no itemised receipt at all.

 

Despite this, all of the receipts were approved, so you and I and every other Warrnambool ratepayer picked up the bill.

Mayor Herbert has made much of the council being “transparent” and he loves to use this word when he talks about the council under his watch: it sounds impressive, noble even, but in reality it rings hollow.

As he was committee chair and is the Mayor, I sent Cr Herbert a number of questions 12 days ago about this VEAC spending, including why it was allowed, whether he knew about the “unofficial” meetings, and how it could be justified to ratepayers.

The response from Mayor Herbert has been silence.

The response from the council has been silence.

Welcome to transparency and accountability, Warrnambool City Council style.

 

Only Cr Owen, who as we know is battling cancer, got back to me within 30 minutes of my questions and said he was “mortified” to learn that the meals for the official VEAC meetings had been paid for by ratepayers. He offered to repay his share.

This whole scenario strikes at the heart of what this credit card saga is all about:

Can all of the spending be justified?

Is all of it scrutinised?

As we are talking about public money, these questions apply whether it is a $7 banana milkshake or $600 worth of grazing plates.

It appears at some point that someone raised a red flag, because between $5000 and $6000 was repaid on Mr McMahon’s credit card before this all became public via FOI.

That is a lot of money.  It means either the council’s credit card policy was extremely vague, or it was ignored.

 

We are not supposed to know about the repayments, but I will be writing more about those later.

To be super clear, the big picture here is about that dull word called governance, which is why the Victorian Auditor General’s Office has recently been all over the potential for credit card fraud by council staff.

The CEO of Strathbogie Shire Council resigned earlier this month after the Auditor General exposed credit card problems very similar to those we are seeing here.

And remember, what I am exposing is just one of the 81 credit cards in use at the WCC.

More soon.

In the meantime, I want to thank each of you for supporting The Terrier by either throwing something into The Terrier Tip Jar, which helps pay for FOIs, or sharing my stories on social media, or telling a friend, or liking the FB page…. thankyou. We are keeping the bastards honest.

On we go.

*VEAC is made up of two councillors, two senior WCC staff and five members of the community. I am not naming the community members, as they are not responsible for running the committee. Cr Peter Hulin is the new chair of VEAC and Cr Herbert is co-chair. Its first meeting for 2019 was held in offices at Flagstaff Hill.

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