CEO sacking: Secret meetings and confidential documents

Confidential documents relating to the former CEO were sent anonymously to Cr Cassidy. Image: Governmentnews.com

Carol Altmann – The Terrier

If everything that dumped Warrnambool City Council CEO Peter Schneider says in his affidavit is true, our council has gone bad.

Mr Schneider’s allegations – which will be put to the Supreme Court on Thursday for a directions hearing – paints a picture of a toxic council, broken by old rivalries and unhealthy, cosy relationships that must end.

And they can only end by a metaphorical deep clean at the next election.

I am hopeful that the full affidavit can be published after Thursday, under the protection of the court, but many of the allegations are out there and they are ugly.

They include the decade-old hate fest between Crs Mike Neoh and Kylie Gaston and their nemesis Peter Hulin which just rolls on.

It includes concerns about the “close relationships” of some councillors to senior council staff, including the Director of Community Development Vikki King, now acting CEO, and former governance manager Anne-Maree Neal.

And it also raises claims that three councillors – Neoh, Gaston and Cr David Owen – allegedly rated Mr Schneider so poorly in a review in May that the consultant, Peter Berry, who was running the review said it could only have been motivated by “vindictiveness” and “spite”.

These are strong words.

And then there is my personal favourite: Cr Neoh allegedly laying the heavy on Mr Schneider for his handling of the credit card saga.

We all know, from the council’s own statements, that it was former CEO Bruce Anson who allowed David McMahon to repay money, to keep his job as a senior manager, and who kept the whole thing under wraps.

Just a blip.

No wonder ratepayers are starting to wonder if Mr Schneider was dumped because he wasn’t up to the job, or dumped because he wasn’t Mr Anson, or dumped because he got along with Cr Hulin.

One thing is certain, the push to get rid of Mr Schneider became dirty, very early.

Here is something you don’t know:

You may recall that Cr Gaston, in a string of questions to Mayor Tony Herbert at this month’s council meeting, asked why he and Cr Sue Cassidy had met at Mr Schneider’s private home for two hours’ on a Sunday in February.

Cr Gaston told the council a number of “red flags” were raised at this gathering.

What I have since learned is that Cr Cassidy had, by that time, received highly confidential documents, anonymously, in the mail, about Mr Schneider’s job application.

From what I understand, these documents related to personality and psychological testing that formed part of the job application.

This is highly personal stuff, and so very few people connected to the council had access to these documents.

Yet they were mailed – anonymously – to Cr Cassidy, and for a reason. Who was behind that move?

No wonder Cr Cassidy was keen to talk to Mr Schneider, face-to-face, in February.

Interestingly, Cr Cassidy was not among the councillors named in Mr Schneider’s affidavit as having acted with “spite” or “vindictiveness” in his May review.

Perhaps, in May, Cr Cassidy still thought he was doing a good job.

Cr Cassidy has declined to comment on this leaked document and Cr Herbert would only say “there were some concerns about confidential information that was sent to Sue.”

On top of all this, Mr Schneider’s affidavit also refers to a particular email written by Cr Gaston.

This email, written in July,Gas allegedly confirms Cr Gaston was seeking legal advice back in February about Mr Schneider’s contract.

In other words, several councillors were starting to seek legal advice on how to get rid of him and how much it would cost.

Who did these councillors expect to pay for this advice? Remind me again?

The Local Government Inspectorate is looking into all this and its findings can’t come soon enough.

Neither, in my view, can the election when ratepayers and residents will decide whether this is the sort of council we want to serve us, or whether it is time for a generational change.




CEO sacking: secret meetings, missing docs and payout shock

The more is revealed about the sacking of the WCC chief, the more questions arise. Stock image.

Carol Altmann – The Terrier

For those who missed my post stream during the final meeting of the Warrnambool City Council, here is the string of revelations regarding the dumping of the CEO:

Good god – this is getting interesting! Cr Kylie Gaston has asked a number of punchy questions to the Mayor about the whole sacking of the CEO saga.

We are now learning:

1. Nine applications during the recruitment of the previous CEO went missing. The recruitment agency had an IT problem. (I hope we got a refund from that recruitment agency).

2. The council and CEO Schneider met on 21 February to discuss issues with the CEO’s performance.

3. Crs Cassidy and Herbert went to Peter Schneider’s private house on a Sunday morning on February 23 to discuss issues that Cr Cassidy had with the CEO. Cr Herbert set up this meeting. Cr Cassidy says she now considers it was unprofessional to have this meeting at Mr Schneider’s house.

4. Cr Gaston says councillors didn’t realise what they signed up for with the CEO’s contract that would allow such a big payout of around $364,000.

5. Another big allegation – that the former CEO signed up long-term contracts of several senior managers knowing that he was leaving. I wonder who these people were? (Ms King – the new acting CEO – was not among them.)

6. Cr Sycopoulis is raising whether the CEO payout is the end of the matter or if extra legal fees may be coming, if there is legal action by Peter Schneider.

7. Cr Gaston says a performance review of the former CEO in May was not favourable and that, in effect, his sacking was not “out of the blue”.

8. It sounds like the WCC didn’t know what it signed up for with the former CEO’s contract. (Good grief). The size of the payout came as a surprise. Not good enough councillors.

9. Bring on the election – there are no winners here.




Sacked WCC chief launches legal action against councillors

Carol Altmann – The Terrier

Lawyers for sacked Warrnambool City Council CEO Peter Schneider have issued defamation proceedings against four councillors.

Those four councillors are Cr Mike Neoh, Cr Kylie Gaston, Cr Sue Cassidy and Cr David Owen.

This partly explains the flurry of confidential business happening behind closed doors at the council meeting last night.

The second matter, according to sources, is believed to relate to lawyers for Mr Schneider arguing that he be reinstated as CEO: in other words, he gets his job back.

There is a precedent for such a thing, with a sacked CEO of Logan City Council, in Queensland, being given her job back after challenging the motives of the seven councillors who deposed her.

Wouldn’t that be a turn up for the books!

With the council elections just two months away and a new council to be elected, it may not be as unthinkable as it sounds.

And the third matter, twisted up in all of the above, is understood to be a heated, ding-dong, hair-pulling (except for Cr Sycopoulis, no offence to him), full-blooded barney over who should pay for the legal expenses racked up so far and those yet to come.

Should it be the individual councillors involved in the coup? Should it be ratepayers?

Discuss.

I emailed all seven councillors today to ask for comment on the legal action, whether ratepayers would be footing the bill, and how much had been spent so far on council lawyers.

Only three replied by deadline and no prizes for guessing who.

Here are their statements in full:

Mayor Tony Herbert:
“Thanks for your email.

As you are aware I am unfortunately unable to confirm most of your queries although some of the info might be able to be sought through channels of FOI. We lost the resolution on the night of the 13th July regarding confidentiality.

It is a very unfortunate situation the council has decided to thrust itself into especially in light of the further and greater impacts of the pandemic on council, staff, council budgets and our community ongoing.

I certainly would have preferred when such significant costs have been incurred, to have spent funds in a more productive and positive way…as a stimulus for our community post COVID for example.

I also implored councillors on a number of occasions to take alternative actions to manage our CEO  through discussion and negotiations rather than this drastic and expensive action as our only management tool!

As far as legal costs questions, I’m unable to comment at this time.

Hopefully things will become clearer.

One thing I will add further, is that personally,  I feel the community has a right to know what happened in the lead up to the sudden termination, reasons for  the termination and also the costs.”

Cr Robert Anderson: 

“Thank you for your email Carol, unfortunately because of the confidentiality on the above subject I am unable to make any comment.”

Cr Peter Sycopoulis:

“Thank you for your enquiry. Due to confidentiality requirements, I am not at liberty to provide an answer to your questions. What I can confirm however, is that I personally have not received correspondence from any law firm in relation to this matter.”

So the council is about to enter a legal shitestorm, to be frank, and – so far – we are officially being told nothing.

Please keep this in mind when we all vote in October.

Think about integrity, transparency, openness, honesty, accountability and the-right-to-know: these, to me, are now the key themes of election 2020.

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Councillors become king makers, but the secrecy remains

In charge: former WCC Community Development manager Vikki King was chosen by the leaders of last week’s coup to replace the sitting CEO Peter Schneider. Image: WCC

Carol Altmann – The Terrier

I asked a simple question of the Warrnambool City Council last Friday: could I have the CV of our new CEO?

The answer was no.

Secrecy is so ingrained in the Warrnambool City Council that ratepayers are not allowed to see the CV of the person who we will potentially* pay around $340,000 – or $26,000 a month for the next 12 months – to run our city.

*(Edit: I have added the word potentially, as this was around the mark for the former CEO, Peter Schneider. Another former CEO, Bruce Anson, received a package of $320,000 in his final year. These salaries are in line with what is offered in “Band 2” councils which include W’bool. The WCC has not disclosed the package for the new CEO.)

As we know, the council’s head of Community Development, Vikki King, was thrust into the top spot by the Four Horsemen who decided to axe Peter Schneider and replace him with the person they wanted in the job.

Given this extraordinary turn of events, I thought it logical that we, as ratepayers, should see the credentials and work history of the person we just “hired” as our chief executive.

The request was denied by Ms King herself.

Here we go again.

It’s just a few weeks since the release of the community survey which showed the people of Warrnambool have had a gill full of being treated like shiitakes, but nothing has changed and, if the past week is any guide, it’s worse.

We were not told by our councillors that the former CEO was about to be sacked, or why, and in some sort of perverse charade the councillors spent the last monthly meeting congratulating themselves many times over for their brilliance.

We also don’t know the cost of this whole set up, and because the coup conveniently happened after 30 June, that cost won’t be included in this year’s annual report.

Amidst all this darkness, it’s the terriers who have to do the digging and delving and poke holes into the walls so that the light gets in.

As I say many times over, scrutiny of our council is not about personalities, but process: when decisions are made on behalf of the public, and involve public money, we have a right to know.

So what do we know?

Well, we know Ms King has been with the council for five years as head of Community Development and, according to some of those who worked with her over that time, is known as “a straight shooter”.

As it happens, Ms King’s contract was due to end in August and who knows what that meant for Ms King’s plans or her future with the WCC?

It doesn’t matter now, because Crs Neoh, Gaston, Cassidy and Owen had Ms King pegged for a whole new post and signed her up for a full 12 months, all without asking the Mayor or the other two councillors.

They didn’t even bother to put an ad on the tearoom noticeboard: “Vacancy. Long hours. Pays well.”

Ms King told the local newspaper last week that she had no idea what was coming.

Judging by the evidence put forward so far by Mayor Tony Herbert, neither did Mr Schneider, who had passed his performance reviews and received a pay rise before being booted out the door without so much as a farewell speech and a WCC tie-pin.

Ironically, Mr Schneider’s departure is the latest in a string of senior resignations from the council these past 12 months under his watch.

Among them was head of governance Anne-Marie Neal, who reported directly to the CEO – both Bruce Anson, and then Mr Schneider – before she departed suddenly late last year without any explanation or comment by the council.

A reader alerted me to a case listed in the Magistrate’s Court for September involving a worker’s compensation claim between Ms Neal and the WCC, so perhaps the circumstances surrounding that situation will soon become clearer.

Another three senior managers have also resigned in the past six months: Manager Economic Development Shaun Miller, Facilities and Projects Manager Ben Storey and, most recently, Director City Infrastructure Scott Cavanagh.

The council itself now has more holes than Swiss cheese and the councillors have never been more divided, with many now asking the same question: how did it get this bad?

And as the Warrnambool Ratepayers Association asked at the weekend, where to from here to turn it around?

As we head toward an election on October 24 and have a chance to determine who runs our city, both behind the scenes and up front, these questions have never been more important.

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Million dollar question on CEO axing remains unanswered

Carol Altmann – The Terrier

Questions: Are we about to throw $1 million of ratepayers’ money down the drain because the four horsemen of the apocalypse decided to sack the WCC chief without warning?

This is the figure being floated about and because Crs Owen, Neoh, Gaston and Cassidy refuse to tell us the full cost of their night of the long knives last Monday, I am going to say it must be close to the truth.

The math makes sense: 2.5 years left on a $340,000 contract, plus paying the acting CEO another $340,000, plus legal fees, leave entitlements etc.

If it isn’t such a huge cost, why is it secret? Ballarat City Council dumped its CEO in May – after a damning Ombudsman’s report – and the payout was in the local paper by the following Friday.

This time last year, these same four councillors voted for a rate rise of 4.5% – almost double the cap.

We were told this massive jump was essential to raise $700,000 extra to pay for bridges and footpaths and all of the crumbling infrastructure that had not been properly maintained under their watch (all ‘inherited’ according to Cr Neoh, who has since told us not to look at the past.)

Every cent of that rate rise will now go toward paying for their treachery.

Thankyou very much Crs Owen, Gaston, Neoh and Cassidy.

These councillors have clearly lost touch with the average ratepayer who they claim to represent and that, to me, is the greatest travesty.

We – and I am among those who have watched my rates go up and up – are just pawns in a power game. A game that was cooked up many months ago.

The acting CEO Vikki King didn’t suddenly get a tap on her door last week from Cr Gaston, or Cr Neoh, or whoever was given that exciting task, to see if she was free for the next 12 months.

How convenient that the acting CEO was slotted into the $340,000 a year role without it being advertised, or offered to any of the other senior managers who might have been interested.

It might be legal, but is it ethical?

Speaking of ethics, I am yet to see one shred of evidence as to why the CEO had to be knifed without so much as a final warning.

If the council gets out of this without a legal battle of some description, especially given the CEO’s professional reputation is now in tatters, I will be amazed – and grateful, that this attack in the night will not leave us carrying an even greater financial burden.

This story is far from over.

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