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“Council received a bill that was later withdrawn,” a council spokesman told me today via email.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 Withdrawn?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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Analysis – Carol Altmann

When is a termination a resignation or vice versa?

The Warrnambool City Council’s forthcoming financial report for 2015-16 contains an intriguing line, saying the substantial sum of between $390,000 and $399,000 was paid out to a senior officer as a result of a “termination” of their employment.

As far as the public record is concerned, nobody has been terminated from the Warrnambool City Council in the past 12 months, but there has been a number of resignations, including director of city growth Bill Millard, who left last November, and that of former head of infrastructure Peter Robertson.

Mr Robertson left the council in January this year after losing the confidence of several councillors.

According to the council documents, the total payout of between $390,000 and $399,000 was a result of a “contractual payment” that was made in addition to the unnamed senior officer’s normal entitlements.

Given the highest salary for a senior officer (not including the CEO) is between $200,000 and $210,000, this is one heck of a payout and begs the question of where that extra $100,000 has come from? Parking fees and fines? And what has been cut in the budget to accommodate it?

We will probably never know due to confidentiality clauses and a general reluctance by the Warrnambool City Council to reveal the salary arrangements of its public officers. After all, we still don’t know, officially, exactly how much CEO Bruce Anson is paid each year.

In the US, for example, it is widely accepted that if you are paid from the public purse – from the US President down – then you can expect full public scrutiny of your entitlements.

Given ratepayers are the ones footing the bill for the Warrnambool City Council, it should be exactly the same here.