Carol Altmann – The Terrier

More on the Ombudsman’s incredible report:

If ever there was an example of how loose the goose was running down at 25 Liebig St, it is this one – the “spend local” idea during the Liebig St upgrade.

A large swathe of the spending on credit cards held by managers other than David McMahon – including City Growth Manager Andrew Paton and former Economic Growth Manager Shaun Miller – is explained away by the council through its “spend local” idea.

According to the Ombudsman’s report, the council had set aside a budget of $170,000 a year for “support local” activities during the Liebig St upgrade.

Under this, “council officers were encouraged to hold work-related meetings at local cafés and restaurants, and to use their Council credit cards to pay for food and coffees”.

A noble cause, perhaps, but this is a remarkably generous eat-and-drink plan that I don’t recall ratepayers ever being told about.

More importantly, as the Ombudsman points out: “No guidance was issued by Council to assist Council officers decide what was an acceptable purchase using Council funds and what was not, other than the directives in the Procurement Policy and the Credit Card Policy.”

No guidance and a $170,000 a year budget: that’s a winning formula.

Mr Paton told the Ombudsman he was mindful of community perceptions and told his team that the “rules” were the meeting had to be business related, and involve another council officer or stakeholder.

(Call me naive, but that sounds like a recipe for pretty much anything goes.)

Here is Mr Paton’s response to the Ombudsman: “… it’s easy to look at a spreadsheet and say, ‘You spent $600 on coffees. How do you justify that?’ with no context of why that meeting occurred and why that expenditure occurred. And that’s a hard one to explain sometimes even to the people who are involved in it …

“I can see how that would look. But in terms of the context of the space we were in and the battle we were in, I’ll use that language … it was a bit of a battle to try and keep the wheels spinning because it was a day-today thing.”

I am not sure how this accounts for the after-hours work drinks on a Friday night at places like the Hairy Goat or the Warrnambool Hotel.

I am also curious as to why the “spend local” was confined to pretty much the same places: Fishtales, The Hairy Goat, Seanchai, Whaler’s, Warrnambool Hotel….

Nobody ever opted for Mack’s Snacks.

As the Ombudsman says, while this “shop local” idea may have been well-intentioned, the approach was “fundamentally unwise” and the public perception could rightly be council staff eating and drinking on the public purse, as opposed to doing “business”.

Again, this report not only reveals what was clearly misuse of a credit card by one person, but what was permissible use of a credit card by others who were simply following the “rules”.

Thankfully those rules have now changed.

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.”

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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.

Carol Altmann – The Terrier

The story behind the axing of the Warrnambool City Council CEO is becoming murkier, with news that the very expensive lawyers involved didn’t charge a cent.

I can tell you the lawyers did in fact charge the council, but then they pulled the bill.

But let’s go back a step.

In one of the most staggering revelations of this whole messy affair, Cr Sue Cassidy told the Standard on Thursday that, “no legal fees were charged by our solicitors” for advice around the dumping of CEO Peter Schneider.

Cough! Splutter! Choke!

When, in the long history of the esteemed legal profession, have you ever heard of top-class lawyers from Melbourne working for free?

Why would any lawyer knock back a lazy $650 to $800 an hour to provide advice on how to sack a CEO?

We now know the four councillors involved sought legal advice and didn’t just Google “how to dump a CEO and still get re-elected”.

This was a very serious matter, given they were about to toss the CEO out the door and hand the cost to ratepayers . That cost, so far, is hundreds of thousands of dollars – around $400,000 in fact.

Yet Cr Cassidy tells us the lawyers never charged a cent for what must have been considerable, specialist advice.

Well of course they charged the council – they sent a bill – but there’s a twist.

They later tore it up.

“Council received a bill that was later withdrawn,” a council spokesman told me today via email.

What? Withdrawn?

Righto, we are in seriously weird territory.

Why would a law firm invoice the council for legal services, and then withdraw that bill?

I asked that question back to the council.

The council didn’t ask why, the spokesman replied.

Oh come on. Seriously?

A top law firm wipes off a bill for what must have been thousands of dollars worth of work and the council just shrugged?

Nothing makes sense and we are – still – not being told the full story by the council, or the four councillors involved: Crs Neoh, Cassidy, Gaston and Owen.

Instead the story drips out in little dark droplets of detail that we all have to try and piece together.

The former CEO has been gone almost two months and we still don’t have the full picture.

As was revealed here, the Local Government Inspectorate is now investigating to see if there were any breaches of the Local Government Act.

Regardless of why the CEO was dumped (“no reason” is the official reason), this whole thing has been handled appallingly on behalf of the people of Warrnambool who, from my reading, are justifiably angry and embarrassed.

Western Victoria Upper House MP Bev McArthur this week raised the whole mess in Parliament, and pulled no punches:

“My question is to the Minister for Local Government and concerns the recent turmoil at Warrnambool City Council and the choice facing voters at the forthcoming October elections.

As the minister knows, the chief municipal inspector has announced an investigation into the sacking of the council’s CEO.

This shoddy backstairs intrigue saw four councillors conspire to seek legal advice behind the backs of their colleagues without spending authorisation and spring the sacking on an otherwise well-regarded CEO whilst simultaneously appointing an existing director to the job.

I welcome this review and thank the minister for his assistance in securing it. On top of this, last December the Victorian Ombudsman began investigating potential credit card fraud at Warrnambool City Council.

The question I have for the minister is: can he ensure that all relevant information from both reports will be released prior to the upcoming local government elections?”

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Questions upon questions – and they will keep coming until we get all the answers.

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Carol Altmann – The Terrier

Is this Warrnambool’s ugliest building site?

I had no idea, until last night’s Warrnambool City Council meeting, that the poor residents of Hayley Drive, near Northpoint shopping centre on Mortlake Rd, have been looking at this stunning vista of a half-finished building for years.

In fact the planning process for what was going to be a “licensed restaurant” at the back of the bottle shop started in 2006.

That is four councils ago.

Carol Altmann – The Terrier

Welcome to Terrier 2020!

This is going to be a huge year, not least because council elections will be held in October and we have a chance to clear the decks at the Warrnambool City Council and start afresh.

And, boy, do we need to start afresh, because the great hope of a new, visionary, united and transparent council after the 2016 election has fallen apart.

We were dudded.

All of those promises on glossy election leaflets and what did we get from our elected councillors? We got a big, fat rate rise above the cap.

And this rate rise of 4.5 per cent was not just for one year, but two, making our average rates ($1920) higher than those in suburban Melbourne (eg $1727 in City of Yarra). I would not be surprised if this year’s rate rise is deferred, after all, it is an election year and it will be all spin and good news stories from here.

But this disgraceful management of our city’s finances is the first of at least 20 good reasons why we need to start over in 2020.

Here are another 19:

1. No councillors questioning why the council had 81 corporate credit cards and how these were used.

2. The inappropriate spending on these cards, including the now infamous Cape Schanck event attended by Cr Tony Herbert and Cr David Owen, and the $700 dinner for four people, including Cr Sue Cassidy and City Growth manager Andrew Paton, at the Myrtle Bar & Grill. Unbelievable.

3. Cr Herbert, as Mayor, failing to tell his fellow councillors about the thousands of dollars in inappropriate credit card spending repaid by former council tourism head, David McMahon, and Cr Kylie Gaston describing the entire credit card scandal as a “blip” that would pass.

4. Cr Gaston and Cr Michael Neoh using the council as a springboard for their political ambitions, sending a clear signal that they would rather be in Spring St than Liebig St. Will they run for council yet again? Probably.

5. Councillors denigrating ratepayers, residents and journalists for daring to ask questions and for refusing to sit down and shut up.

6. The ugly, personal power plays of Crs Herbert and Cassidy over who would be mayor, including Cr Herbert dropping the c-bomb. Classy.

7. The astronomical increase in pet registrations, making them the second highest in Australia, and fining hundreds of dog owners in what became a P/R disaster.

8. The cost of parking and parking fines in the CBD which might bolster revenue, but is killing local traders by a thousand cuts.

9. A $3 million blowout on the Liebig St upgrade, and excessive spending on roundabouts, pedestrian crossings and toilet blocks.

10. The first sod of the Reid Oval redevelopment has not been turned, yet small sporting clubs like East Warrnambool Football and Netball Club are already being shafted. This comes on top of clubs paying a 100 per cent increase in WCC sports ground hiring fees. Meanwhile South West Sport, of which Cr Neoh is CEO, pays no rent for a council-owned property at 34 Koroit St and South West Sport will eventually have a brand new office at Reid Oval. Fair?

11. Whistleblowers within the council being investigated and threatened with disciplinary action.

12. Bending over backwards to accommodate the racing industry and particularly disgraced racehorse trainer Darren Weir by turning our beaches and Albert Park into full-on training facilities.

13. Flagstaff Hill remains a running financial sore, with no clear, public plan for its long-term future.

14. Some council staff living in subsidised, council-owned properties, including one on a verbal agreement only for more than 30 years.

15. The council ignored its survey of 700 people which found most did not want a rate rise. By contrast, an Ipsos survey of 52 people* which declared Warrnambool the most liveable city has become a council mantra.

16. A mural by a convicted paedophile remains covered up at the Lighthouse Theatre, rather than removed, despite the full horror of child sexual abuse in Warrnambool now coming to light.

17. The continuation of the boys’ club mentality within council that allowed bullying to go unchecked, credit cards to be misused and good staff worn down to the point of quitting.

18. A botched attempt to charge local market stallholders $600 a year after complaints from permanent traders yet, this summer, Cr Neoh set up a pop-up restaurant right next to permanent traders.

19. And last but not least, a council that declares itself clean and green, yet still sprays glysophate/Roundup around Lake Pertobe; wants to allow racehorse training where hooded plovers nest; wants to fly across the world to Sweden to talk about hydrogen; and attempted to cut down 115-year-old Moreton Bay figs.

I am sure each of you could add more, but the point is we deserve so much better and we can demand it.

We want community leaders who have the community at heart – not people installed for their own self-interest, or by a particular interest group.

We don’t want more slogans and spin – we want honest answers to our questions and a bold, realistic, sustainable plan for our city.

Above all, we want an end to the waste of ratepayer and taxpayer money.

This is the year we can make a change – we can do it – and campaign 2020 starts now.

[*Ipsos interviewed 9515 people nationally for its survey. Of these, 52 were from south-west Victoria, which was defined as an area east of Colac, up to Casterton and across to the SA border. The majority of these 52 ranked the south-west highly on various liveability measures.]

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