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.




Lyndoch Living rolls out masterplan…and cuts nursing staff

Carol Altmann – The Terrier

I am interrupting our running story on credit cards to say there are angry stirrings at Lyndoch Living aged care which is rolling out its $100 million masterplan – and cutting nursing staff.

The Australian Nursing and Midwifery Federation has taken up the fight against plans by Lyndoch to blend its two highest acute care units, the 45-bed Audrey Prider Centre unit and the 39-bed Lake Lodge unit, even though they will remain physically separated by a room.

The union says the move will see just one full-time nurse unit manager in charge of the clinical care of 89 residents.

On top of this, the union says, there will be less associate unit managers – 7.5 full-time positions instead of 10 – that will oversee the unit when the nurse unit manager is not rostered on.

Staffing issues have been swirling around Lyndoch for months now, with many of the hard-working staff fearful of whether they will still have jobs.

 

There are also mounting reports of stress from the staff shortages that already exist. Unfortunately, with all the goings on at the W’bool City Council, I just haven’t had a moment to dig into it all.

I emailed Lyndoch CEO Doreen Power last Friday for a comment on the union statement, but I have had no response.

In the meantime, the first stage of the $100 million project will see the Warrnambool Medical Centre move on to the Hopkins Road site and new carpark up and running within two years.

I sense there will be much more to come on this story.




We don’t want ‘sexy’, we just want sensible spending

Carol Altmann – The Terrier

Isn’t it fascinating how most of the W’bool City councillors take zero responsibility for whacking us with more rates, as if it all just happened around them?

Like a dog that destroys the couch, the councillors are anguished and tormented once the damage has been done, but did nothing to stop the damage in the first place.

Instead – they plead – the problems that have led to us paying 4.5% more in rates for the next two years were “inherited”.

They also plead that WCC is “special” compared to every other council in Victoria because, after all, 77 of the 79 councils will keep their rates capped.

Hold on.

What we have “inherited” is more than 10 years of most councillors being too weak to ask probing questions of former CEO Bruce Anson and his senior staff.

 

Not only did these councillors avoid any probing questions (and here Crs Neoh and Gaston, I am looking at you), they kept ticking off on Mr Anson’s annual performance reviews and pay-rises because he and his team were apparently doing such a terrific job.

We paid Mr Anson and his senior staff handsomely because they were in charge of the ship: the captain and his crew.

And we elected our councillors in the belief that they would raise their binoculars, keep an eye on the ship and steer it well away from the rocks.

We didn’t ask to be “sexy” or “special”: we just wanted the council to do its job.

In this, we are like residents of every other city and town across Victoria.

But here we are, on the rocks, for the next two years at least, and the couch is wrecked, yet our councillors are still expecting a pat on the head.

Not this time.

Good on the ratepayers for biting back. We need Warrnambool to be guided by watchdogs, not lapdogs.




Titbits: WCC staff meet the Boss, and those Aquazone dollars

Carol Altmann – The Terrier

The Warrnambool City Council offices were buzzing yesterday as dozens of staff were seen piling into the Lighthouse Theatre studio for what some passers-by thought might be a mass union meeting.

But no, it was not a union meeting, but a meet-and-greet with new CEO Peter Schneider who still remains a bit of mystery man since starting the new job in February.

According to a somewhat embarrassing movie-style internal flyer that was, I guess, a bit of fun from the council’s public relations team, the sessions were a chance to MEET the CHIEF.

“He’s a man with a plan and he wants to meet you.”

Heavens.

This blockbuster event was a chance for staff to be introduced to Mr Schneider and “talk about culture, values and the way forward”.

The flyer “reviews” said it was a presentation not to be missed and a real “game-changer”.

This all sounds positive, even if the flyer scares me with its machismo, slightly Trump-esque tone.

Hopefully there are plans for a a public screening of this “blockbuster” so we can all hear about Mr Schneider’s culture, values and the way forward too.

An update on last night’s Facebook post about $985,000 being spent at Aquazone this year to improve water treatment and air quality at the pool.

I wondered out loud where the money was coming from, given the 2018-19 budget set aside $540,000 for the water treatment works and next year’s budget makes no mention of any Aquazone works at all.

The answer came today from council spokesman Nick Higgins who said the rest of the money dates back to the 2017-18 budget, when $420,000 was set aside to fix the roof, but was never spent.

Further investigations, he said, revealed the roof was being ruined by an old air handling system, so it was decided to fix the roof AND the air circulation problem in one.

So this is why, as we speak, the whole she-bang adds up to close to $1 million.

Pools are expensive to maintain and it seems heated, indoor pools are even more expensive: in 2015, the council spent $178,000 re-tiling the changerooms at Aquazone and the pool is not yet 20 years old.

Hold your breath, because I sense the $985,000 this year is just the beginning.