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.”
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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.
Ombudsman reveals shouting the bar, at ratepayers’ expense
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”
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.
WCC election: last drinks on secrecy, fibs and fairytales
Carol Altmann – The Terrier
Ding! Ding! It’s last drinks at the Warrnambool City Council as we have known it for the past decade, with fresh faces stepping up for the election and the old crew failing to fire.
We may see, at last, a permanent end to what I will call the Anson era (aka, the dark, old days).
By sharp contrast, the announcement by veteran councillors Kylie Gaston (8 years/twice Mayor) and Mike Neoh (16 years/ five times Mayor) that that they will both run again went down like a lead balloon.
(Strangely, Cr Neoh also announced he would run for Mayor, for a sixth time, before that part of the newspaper story online suddenly disappeared.)
That’s because the ratepayers and residents of Warrnambool have wised up.
To put it bluntly, they no longer fall for spin, gas lighting, or the lack of taking any responsibility whatsoever for poor decisions and costly mistakes.
For while Crs Neoh, Gaston and the other five sitting councillors have all made a contribution to public life, they have also overseen a period where the councillors have completely lost the trust of the people – and for good reason.
You can’t talk about being open and upfront and then have four councillors knife a CEO behind closed doors just three months before an election, with no evidence or explanation as to why, and install a person from within whose five-year contract was about to expire.
W’bool City Council and former Mayor Kylie Gaston will run for council for a third time. Image: WCC
All of this was done, of course, without telling ratepayers how much the coup will cost them in legal fees and payouts.
Cr Gaston did and, in my mind, it is both unforgivable and so telling, because it reveals a mindset among councillors where public image is more important than public accountability.
It’s this mindset that has plagued our council for at least 10 years, at enormous expense to ratepayers and residents.
The current batch of councillors, except, perhaps, for Cr Sycopoulis who spent years challenging the dominant forces, have been part of this.
We know, for example, that the Liebig St upgrade – trumpeted as a huge success – blew out by almost $5 million.
And poor old Flagstaff Hill has cost more than $10 million to keep afloat since it began to die in 2009, including $3 million for a sound and light show that was doomed from the start.
Ratepayers also spent more than $6 million propping up the Fun4Kids festival because the council had nothing else in the wings to replace it.
And just last year, there was no money to spend on repairing and maintaining basic things like footpaths and bridges, yet the councillors agreed to spend $775,000 on two toilet blocks and almost $500,000 on a single roundabout in Kepler St.
Many of the current councillors were part of all this.
Cr Mike Neoh, left, as former Mayor during the announcement of a $3 million upgrade to Flagstaff Hill. Image: WCC
Rates had to be increased by double the state cap, because we were so broke, yet Crs Neoh, Gaston and Anderson, as Mayors, kept reassuring us that the budget was strong.
It wasn’t. It was weak, and it’s going to get much weaker.
This year’s budget already has a $10 million hole from the impact of Covid-19, which is far from over, and the blowout will most likely get worse before it gets better.
We are potentially facing a devastating financial and social crisis in the next 12 months and yet what do we get from most of our councillors? We get more fairytales.
First we are told the council is considering selling Flagstaff Hill, but it’s prime Crown land and it can’t be sold – nor should it be sold – without good reason and special permission from the state.
The ink had barely dried on that fairytale before Cr Gaston, in announcing her candidacy, said she wanted to keep Flagstaff Hill, reopen the pub and…drumroll… link the whole place to Lake Pertobe.
This “new idea” has been around since 2013, when it was raised as one of the ways to stop Flagstaff Hill from bleeding to death.
At that time, the majority of councillors – including Cr Gaston and with Cr Neoh as Mayor – pushed for the sound and light show…. and blew another few million dollars.
Cr Neoh, meanwhile, recently announced as his big new idea a walking/bike path from Lake Gillear to Childer’s Cove.
As candidate Jim Burke discovered in his research, this “new idea” has been around since 2005, a year after Cr Neoh was first elected – 16 years ago. (See above)
Nothing happened.
It’s all just more spin, more puff and more distraction from a legacy littered with waste.
Even if we wanted to believe in these fairytales, we can’t afford them, and the people of Warrnambool know it.
We are wide awake to what is going on.
Despite the attempts to keep us in the dark, we have been turning on the lights and we can see an entirely different future to one that is just more of the same.
That future, if Warrnambool really wants it, starts with choosing an entirely fresh council in October.
I’ll drink to that.
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Carol Altmann – The Terrier
Carol Altmann – The Terrier
