The truth behind Lyndoch’s immoral horse race sponsorship

Lyndoch executive members board chair Kerry Nelson and CEO Doreen Power at the presentation of the Grand Annual Steeplechase 2019, sponsored by Lyndoch. Image: Racing.com/Getty Images.

Carol Altmann – The Terrier

Let’s get straight to it. Lyndoch Living is a registered charity that has no right to spend more than $150,000* sponsoring Warrnambool’s Grand Annual steeplechase.

In fact, this immoral deal between our community-owned aged care home and the Warrnambool Racing Club makes a lie of an important promise made by Lyndoch to us 10 years ago.

Let me explain.

Contrary to recent reports, there is no “commercial arm” of Lyndoch that will provide private money for Lyndoch to sponsor the Grand Annual Steeplechase for another three years, having already sponsored it for three.

The race is being sponsored by Waterfront Living, which are the up-market retirement apartments built by Lyndoch near the Hopkins River bridge and which first went on sale in 2014.

Lyndoch CEO Doreen Power, third from left, at the 2017 Grand Annual Steeplechase presentation.

Waterfront Living was built by Lyndoch using public money, is still managed by Lyndoch, and remains a full subsidiary of Lyndoch – the board and CEO who look after Lyndoch are also in charge of Waterfront Living.

Waterfront is not some sort of separate, private entity that gets to spend its money wherever it likes. It is a part of Lyndoch, which is a charity.

And here comes the crunch.

Why did Lyndoch build these apartments? To make money to put back into Lyndoch.

Former Lyndoch CEO Rhys Boyle, who retired in 2015, made this very promise to the community when the apartments were built.

This is what he said at the time:

Every cent made by this project will go back into our business to keep it operational.”

Every cent.

And then this:

“This development isn’t about making profit for profit’s sake. Lyndoch as an organisation can’t be benevolent to our residents if we’re not making enough money to put back into the business.”

 

I added the bold type, because I need to shout these words from the page.

We are being duped.

We now have clear proof – from the very top of Lyndoch – that the money coming in to Lyndoch from the apartment sales was never intended to go toward a horse race.

It was to go toward caring for the residents.

Racing sponsorship, or some new “Princess” chairs to replace those worn out, as captured in this image taken by Lyndoch late last year.

There is no possible justification for such a sponsorship deal, especially when Lyndoch is operating at a loss, which it has done for four of the past five years.

Any money from Waterfront – every cent – is to go back into Lyndoch so the hard-working staff can provide the best care to residents, including things like new, comfortable chairs, quality food, good coffee and yes, a steady supply of sheets, towels and face-washers.

I, for one, have had enough of the spin and the failure of the board to scrutinise every inch of Lyndoch’s spending on our behalf.

The board, if it needs reminding, is there to represent the community who still own Lyndoch, just as we have for more than 60 years.

The board is our voice and they are letting us down.

If there is one thing about our community, perhaps because we are surrounded by dairy farms, it’s that we can smell the scent of bullshite and we know when things are not right.

Sponsoring a horse race with Lyndoch money is not right.

Photos taken inside Lyndoch last year show shortages of linen. The reasons have never been explained publicly, with Lyndoch refusing to comment.

As the ultimate owners of Lyndoch, it is time for the community to speak up on behalf of those who can’t, because if we don’t, we are letting down our loved ones in Lyndoch and we are letting down all of the residents and their families.

You can contact the Minister for Disability, Ageing and Carers, the Hon Luke Donnellan, here: luke.donnellan@parliament.vic.gov.au

You can contact the Lyndoch chair, Kerry Nelson, here: knelson@mpower.org.au

And you can contact the Australian Charities and Not for Profits Commission here: https://www.acnc.gov.au/raise-concern

I wish I could say this was the end of the Lyndoch stories, but there is still a long way to go before everything is out on the table.

More soon.

* the cost of the sponsorship has never been declared by Lyndoch, but is believed to be around $80,000-$100,000 for each three-year sponsorship.

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Amid allegations of staff shortages, Lyndoch’s off and racing

Lyndoch Living CEO Doreen Power cheering on from the stands during the 2019 May Racing Carnival. Image: Lyndoch Living/ Racing Victoria.

Carol Altmann – The Terrier

With aged care under the pump, it’s hard to believe Lyndoch Living spends tens of thousands of dollars sponsoring the Grand Annual Steeplechase and hiring a marquee at the Warrnambool May Races.

Details of the deal are not public, but it means potentially around $160,000 – if not more – will have been spent on supporting gambling via race sponsorship and corporate hospitality for selected Lyndoch staff, guests and residents.

When did supporting gambling become a core value of Lyndoch aged care, which is a registered charity and a public benevolent institution?

 

Just as with Lyndoch’s plan to build a multi-million-dollar medical centre, the appropriateness of this deal is also the subject of complaints to the Australian Charities and Investment Commission, which will make an assessment.

The close ties between Lyndoch and the Warrnambool Racing Club also raise potential conflicts of interest, which I will get to in a moment.

Lyndoch chair Kerry Nelson and CEO Doreen Power, right, with the sash for the 2019 Grand Annual Steeplechase sponsored by Lyndoch. Image: Lyndoch Living.

First, however, it has emerged that while members of Lyndoch’s hierarchy were enjoying the May Races this year, life was less glamorous back at Lyndoch itself.

The daughter of one resident was, at that time, spending each day in Lyndoch to watch her Mum because she had taken to falls and there was not, allegedly, enough staff to keep an eye on her.

To protect the privacy of the resident, I am not revealing this woman’s identity, but I have spoken with her several times and she is a highly credible source.

 

The woman in question took a week off work to spend seven days straight, from 7am in the morning until 10pm at night, in her mother’s room at Lyndoch because, she told me, she could see the staff were “literally running” to keep up.

Many staff, she says, were not able to take their breaks.

The situation was compounded by the wing being in lockdown due to an outbreak of influenza, which meant an additional burden on staff, such as feeding all residents in their rooms.

While the woman could see the staff were “doing their best”, it was clear that if she wanted a close eye kept on her Mum while the doctors sorted out her medications, it would be better to watch her herself.

Lyndoch board member Cr Sue Cassidy and CEO Doreen Power in the Lyndoch corporate tent during the 2019 May Racing Carnival. Image: Lyndoch Living

Spending hours each day with her Mum was a commitment she was prepared to make, but then she scrolled through Facebook and saw Lyndoch posts of CEO Doreen Power and chair Kerry Nelson at the May Races.

Judging by the Facebook posts, some Lyndoch executives including Ms Power didn’t attend just one day of the carnival, but at least two.

The woman, to put it plainly, was absolutely furious.

 

She arranged to meet directly with Ms Power to express her concerns around Lyndoch’s handling of the lockdown, the alleged staff shortages and the impact on her mother’s care, but, she says, left that meeting far from satisfied with the CEO’s alleged reactions and responses.

The woman then contacted the chair, Ms Nelson, who she described as sympathetic, as was the Director of Nursing Julie Baillie, but she ultimately came away feeling “very concerned” by the overall response of Lyndoch to her complaints around duty of care.

I asked both Ms Power and Ms Nelson to comment on this woman’s story. Neither responded.

Lyndoch board member Peter Downs, former CEO of the Warrnambool Racing Club, (far left) and Lyndoch CEO Doreen Power (third left), who are part of a syndicate behind Strategic Force. Image: Racing.com

This snapshot of life inside Lyndoch during the 2019 May Race Week brings me back to the question of what is Lyndoch Living doing at the races in the first place?

Were staff on paid time or personal leave? Perhaps this is another example of Lyndoch’s new “core business” in action.

I do know that the relationship between the Warrnambool Racing Club and Lyndoch has become much closer since former club CEO Peter Downs joined the Lyndoch board in September 2016.

It was just four months’ after Mr Downs joined the board that Lyndoch announced its first, three-year sponsorship deal of the Grand Annual Steeplechase.

At the time, the board was at pains to point out that Mr Downs – who had a very clear conflict of interest – excused himself from anything to do with that decision.

This must mean the Lyndoch Living board came up with the whole idea itself.

 

Lyndoch has since re-signed its sponsorship deal for 2020 and Mr Downs, who now lives in Melbourne and works for Moonee Valley, remains on the Lyndoch board.

The links, however, don’t stop there.

As I wrote in April, Mr Downs and Ms Power also have shares in at least one racehorse, Strategic Force.

Any potential, perceived or actual conflicts of interest there?

Apparently not.

It is these tangled webs and inexplicable decisions that have so many of us outside of Lyndoch worrying about its direction and priorities.

And it is why we will keep asking questions of those in charge, no matter what hurdles are thrown in our way.

The final instalment – before I pick up the thread after Christmas – is coming soon.

In the meantime, I am starting a Foxy Fighting Fund. If you would like to make a small contribution, you can do so below.

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Lyndoch CEO and W’bool Racing Club chief share racing ties

Locally trained racehorse, Strategic Force, the owners of which include Lyndoch CEO Doreen Power and Warrnambool Racing Club CEO Peter Downs, who is on the Lyndoch board. Racing.com

Carol Altmann – The Terrier

I recently learned that Lyndoch Living’s chief executive officer Doreen Power has shares in at least one racehorse with Warrnambool Racing Club chief executive officer, Peter Downs, who is also a member of the Lyndoch board.

Why is this of interest?

Because in early February 2017 –  just four months after Mr Downs joined the Lyndoch board – Lyndoch’s Waterfront Living announced a three-year sponsorship deal for the naming rights to Warrnambool’s Grand Annual Steeplechase.

The deal is believed to have cost Lyndoch between $50,000 to $60,000. (A source has since told me the figure is closer to $70,000).

The always-murky circumstances around this Lyndoch-Warrnambool Racing Club sponsorship deal have just become a whole lot murkier, not least because Ms Power refuses to answer questions about it, or her co-ownership of the racehorse with Mr Downs and others.

 

Questions sent to Ms Power via email have gone unanswered.

The racehorse in question is a five-year-old, chestnut gelding called Strategic Force that is trained by top Warrnambool trainer Symon Wilde and has, to date, won about $20,000 in prize money. Ms Power and Mr Downs are among 13 owners, including Mr Wilde himself.

Mr Downs, far left, and Ms Power, third from left, with some of the other 13 owners who share in the Symon Wilde trained racehorse, Strategic Force. Image: Racing.com

As it happens, the horse has been nominated to run in three races at the May Racing Carnival this week.

I can’t tell you how long Ms Power has held shares in the horse, but given it was foaled in 2013, it is quite feasible that it has been for several years and includes the time when the Lyndoch sponsorship deal was struck by the board.

As CEO, Ms Power is not on the Lyndoch board, but Mr Downs is. So is another high-profile supporter of the local racing industry in Warrnambool City Councillor Sue Cassidy.

Most importantly, Ms Power’s connection to the racing industry and her connection to Mr Downs in particular, has never been declared by Lyndoch which, we must remember, is a public institution, not a private company.

 

This is why Ms Power’s investment in a racehorse with the CEO of the Warrnambool Racing Club is of public interest, rather than what might normally be considered a private arrangement.

When the Grand National Steeplechase sponsorship deal with Lyndoch Waterfront Living was first announced, Lyndoch board chair Kerry Nelson was at pains to point out that Mr Downs was at arm’s length and excused himself from all discussions.

Maybe so, but it still didn’t look good. Ms Power and Mr Downs holding shares in the same racehorse also doesn’t look good.

 

My Mum lived at Lyndoch for the past nine years, and I can’t speak highly enough of the hard-working staff who made her life so comfortable right up until her final breath, but I could count a dozen ways that $50,000 or $60,000 could be spent productively within Lyndoch rather than on a jumps race.

This is especially so when the point of the sponsorship – to help sell the Lyndoch Waterfront Living apartments – has not worked as hoped and several apartments remain empty. The entire second stage of the project is also on hold.

This is the final year of the steeplechase sponsorship deal and, no doubt, Lyndoch will be offered the opportunity to re-sign.

If it does, the circumstances surrounding the decision are now more transparent, even if the sponsorship itself is still questionable.

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