Carol Altmann – The Terrier

When you dig into the Warrnambool City Council, it’s amazing what tumbles out, like a full-time, senior manager having a second job outside of the council.

The manager is earning more than $100,000 as a senior public servant, but also, at the same time, is working for a private company – all with the approval of the council.

As such, the manager in question, WCC Economic Development and Investment head Shaun Miller*, makes no secret of his second job, which he started in March and which is listed on his Linkedin profile.

It’s with an Australian-based group called Acusensus, which has developed a world-first camera system to detect people using their mobile phones while driving and, it is hoped, reduce road accidents as a result.

It is a great idea and Acusenus, it is fair to say, is on the cusp of something very big.

It recently hooked up with the NSW Government to supply these cameras, and is rapidly building a network of global contacts.

No wonder it has been on a hiring spree, and Mr Miller has jumped on board as its International Business Development Manager.

Mr Miller also knows some of the guys at Acusensus, including its chair Ravin Mirchandani, who he worked with before his days with the WCC.

As I say, Acusensus and Mr Miller make no secret of any of this, with the company making a public announcement when Mr Miller was hired.

Having said that, the announcement makes no mention of Mr Miller working for the Warrnambool City Council – it skips over that bit.

Mr Miller was refreshingly frank – if brief – when I asked him about this second job.

“In response to your email, I work 7.6 hours a week for Acusensus.

“This does not impact on my council role.”

So, as is often the way with the goings on inside the WCC, Mr Miller is not doing anything the council has not allowed him to do.

He is not breaking any council rules: we just don’t know what those rules are.

 

I have no doubt Mr Miller is able to separate his roles entirely, but boy, it raises some questions as to why the council would think this was okay.

The most obvious is: how does the council keep an eye on such second jobs?

How does it keep an eye on whether a manager is spending council time working on council business, or on private business?

What about all of the contacts and insider knowledge the manager builds through council work – and for which he/she is paid handsomely by ratepayers – which could be of use in the private business?

 

And what if, in six or 12 months time, the manager jumps ship for the now well-and-truly-established private job that is far more appealing than the council job?

In some circles this is called hedging your bets.

Again, I am not suggesting  Mr Miller is anything but stringent in separating off his 7.5 hours with Acusensus, but these broader questions still need to be asked.

And so I asked them.

I asked the WCC spokesman Nick Higgins on Tuesday if it was normal for senior managers – or any full-time council staff for that matter – to be given approval to have another job?

The answer?

Silence.

Crickets.

Bat + Ball + Home.

It appears The Terrier is not allowed to ask questions – or expect answers –  about anything connected to the $34 million of ratepayers’ money spent on staff.

(Actually, it appears since the credit card scandal – which I will return to in coming days – I am not allowed to ask about anything at all, sorry readers.)

In the absence of any official explanation, we will have to assume the council has a firm policy to cover second jobs, which is what government authorities suggest councils do if they intend to go down this complicated path.

And if it doesn’t have a policy, it might be writing or reviewing one right now. I wonder if it will be made public?

*Mr Miller was mentioned in dispatches as part of the WCC group that visited Flemington for four days for, we assume, a Victorian tourism conference and, for one WCC staffer at least, most likely a day at the races. This story sent Terrier readers off down the rabbit holes to find out more, which is where the Acusenus job came to light. Good digging.

Carol Altmann – The Terrier

It has taken a while, but I finally have an official response from Mayor Tony Herbert as to when councillors were told about thousands of dollars worth of unauthorised spending on a Warrnambool City Council corporate credit card.

And, thanks to a growing tribe of trusty terriers, I can also tell you more about thousands of dollars spent by the council for accommodation at Flemington, including a Saturday when the races were on.

First to the Mayor.

Cr Herbert’s statement is in full below, but the short answer is Cr Herbert was the only councillor told by former council CEO Bruce Anson about the credit card misuse.

The briefing happened in November, shortly after Cr Herbert was elected Mayor, and after the errant spending by a former senior manager, David McMahon, was apparently picked up by finance staff in September.

The council’s Audit and Risk Committee wasn’t told.

The then-mayor Cr Robert Anderson wasn’t told.

None of the other councillors were told, and I believe at least one found out about the rort when it was exposed by The Terrier two weeks ago.

Remember, councillors are there to represent us and the CEO answers to them, not the other way around.

 

As we know, the council holds briefings with councillors all the time. It’s where all the good stuff happens: the real discussion, debates and arm wrestles that used to happen in open council meetings that stretched on until midnight.

It’s also where confidential issues are raised.

But for some reason, our elected representatives –  other than one – were not told of a major financial breach by one of the council’s senior managers who, at that point, had been asked to pay back more than $4000 and I believe up to $6000.

If I had not lodged an FOI in October last year, none of us would know a thing about any of this and Mr McMahon would still be in his highly paid job.

And if we hadn’t, between us, blown this thing right open, the fresh investigation into Mr McMahon’s spending and the use of all 81 corporate credit cards would not be happening.

That is how things were allowed to operate within certain circles at council for years.

Even now, we are still not allowed to know who within council has a credit card, the spending limits, and the value to ratepayers, such as what tangible results or reports we see from the thousands of dollars spent on numerous conferences.

Thanks to the terriers out there, however, we can find out more than what the council officially tells us.

For example, through Freedom of Information I learned that more than $3500 was spent on sending up to six council staff to Flemington Quest for four days in July 2017.

Even though we paid for it, the council has refused to answer questions about this event, including why the accommodation included a Saturday and a Sunday night for at least one person, if not two.

It turns out – thankyou terriers – that the Flemington Quest is next to the Flemington racecourse which hosted the 2017 Victorian Tourism conference on the Monday and Tuesday, 24-25 July.

So perhaps the council sent six people, including two senior managers, to the conference. (It sent seven people to the same conference last year – site of the infamous Cape Schanck booze up.)

But wait, there’s more. There always is.

It also turns out – thankyou again tenacious terriers – that Flemington was also hosting a major racing event, Recognition Race Day, on Saturday 22 July 2017. Trainers Darren Weir and Jarrod McLean had horses running.

So, did some council staff arrive on the Saturday so they could go to the races?

I am a hopeless punter, but in the absence of any other explanation from the council spokesman, I bet they did. 

As we know, this whole issue is not just about unauthorised credit card use, but also spending which was considered – for years – to be perfectly okay. 

 

To get to the bottom of it, we will keep peeling back the layers. There is so much more to come.

In the meantime, here is Cr Herbert’s statement in full:

“I am responding to your question about the exact date of notification.

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Carol Altmann – The Terrier

Isn’t it astonishing that our elected councillors, while pushing for a rate hike, knew nothing about the thousands of dollars being racked up on Warrnambool City Council corporate credit cards for meals, alcohol, travel, accommodation and coffees?

They apparently had no idea. None.

I don’t think our councillors even knew that the council has 81 corporate credit cards floating around – one for every four, full-time equivalent staffers.

And worse, when it was discovered that at least one of these cards was being used to buy excessive amounts of booze, and car washes, and unauthorised dinners, they didn’t know about that either.

No idea. None. Nobody told them.

(I am still waiting for a formal statement on behalf of all councillors from Mayor Tony Herbert on the simple question of who was told what and when. Hopefully I can run it in full tomorrow.)

We now know that more than one card was being used in this way, thanks to my asking questions, sources who have a strong moral compass, and documents released through Freedom of Information that I lodged on 30 October last year.

And yet the very councillors who agreed to jack up our rates by 4.5% for the next two years didn’t know a thing about it, and nobody bothered to ask.

Even the Audit and Risk Committee, which includes Cr Sue Cassidy and Cr Michael Neoh, didn’t know.

According to a statement from Crs Neoh and Cassidy, the committee only gets notified if there is suspicion of fraud. Well, guess what…..

If this is what passes for scrutiny of ratepayers’ money at a time when every dollar counts, we are being ripped off and no wonder – no wonder – the big party going on behind the scenes in some quarters of council went unreported for so long.

Which brings me to a new feature in The Terrier – the Big Barry Boolshite detector.

Big Barry is a Bull Terrier and he can sniff out Boolshite at 100 paces, so tonight I am unleashing him for the first time and I am sure it will not be the last.

I gave Big Barry a sniff of the council’s claim that it, miraculously, discovered Mr McMahon’s over-the-top credit card spending in September, just a few weeks before I lodged my FOI on 30 October.

Big Barry’s meter went into the red zone! Bool-shite detected!

Because I have since sifted through my emails to council, and I discovered that I first asked about their credit cards on, wait for it, 20 September last year!

Why did I ask them? Because journalists in South Australia and Tasmania were exposing credit card rorts within councils.

Such was the flurry of excitement within council about my questions, it put a whole response on its website, buried where nobody would find it, a week later on 27 September last year.

And then on 30 October I lodged my FOI on Mr McMahon’s spending, having received a tip off about a big booze up that went onto the corporate card and was paid for by you, me and Barry via his exorbitant dog rego fee.

And coincidentally, a few days later in early November, former CEO Bruce Anson sits down with Mr McMahon and sorts out how much Mr McMahon needs to repay.

(Barry, Barry, calm down…it’s okay, we all know its Boolshite).

A big slab of what Mr McMahon had to repay – $1600 worth – was for a big knees up at the Cape Schanck resort in July where Cr Tony Herbert and Cr David Owen were among the council representatives.

Despite being there, at Cape Schanck, Crs Herbert and Owen apparently saw nothing untoward that made them think, “hang on, who is paying for all this?”

And this is why we have lost faith and heart and trust in the very systems and people that should be protecting us from being exploited.

The new CEO Peter Schneider is holding his internal review, all of the 81 credit cards are now being checked – at long last – but, sorry, for those of us now paying higher rates and fees, it is all too little, too late.

Our local MP Roma Britnell is the only one in authority who, so far, has had the spine to take this straight to the top. Straight to the Local Government Minister, Adem Somyurek, who has been swift to act on the rubbish going on down in Gippsland at South Gippsland Shire.

The Minister put administrators in to clean out the joint.

I agree with Roma’s call for a full independent inquiry and so does Barry and I bet you do too.

Thankyou so very much to everyone who has supported The Terrier with a contribution to the Tip Jar: this investigation is the Tip Jar at work. You can be part of it by clicking below.

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Carol Altmann – The Terrier

Here we go again.

One of the big questions that hangs over the whole Warrnambool City Council credit card scandal is how many other cards were being used to eat, drink, and stay awake with endless coffees?

Tonight I can tell you that it does not stop with former tourism manager David McMahon.

In fact, my left rib tells me that we are just getting started.

While Mr McMahon ended up wandering down a crooked path, he was also – we must remember – spending thousands of dollars of ratepayers’ hard earned money on food, booze and takeaway coffees with the full approval of those in charge.

He was not the only one.

This is because the council’s secret credit card policy was so slack it allowed some council staff to spend up big on alcohol, food and their almost daily coffee run to Fishtales without fear of retribution.

And that is why we have a receipt like the one above.

It shows that in August last year, another WCC senior staff member attended a conference on the Mornington Peninsula and racked up $368 worth of drinks over two days.

This equals 40% of the total bill.

Toot, toot, all aboard! When there is a gravy train on the move, it is never short of passengers.

The person who racked up this receipt in August was, I believe, at the Cape Schanck conference held in July where more than $1600 was spent on Mr McMahon’s credit card on food and drinks.

This person was also part of a five-day trip to WA with Mr McMahon in October, where the infamous “tackle” was bought after 7pm on a Friday night.

And all of this travelling and boozing was going on behind the scenes while the council prepared its case to raise rates above the cap.

It is like the days of Versailles, with a select group of council insiders enjoying the party, while the majority of people in Warrnambool work their backsides off to make ends meet and are being belted with rate rises, fee rises and fine rises, because the council is going broke.

The credit card spending is just one part of the enormous waste that has gone on for a decade, but it is perhaps the most disgraceful, because it can’t be explained away as a mistake, or a misunderstanding, or from “circumstances beyond our control”.

It is pure greed, aided and abetted by a system that let us down.

Those council staff – and thankfully they are in the minority – who carved into eye fillet steaks, or who ordered another bottle of red, or another round of beers, or another glass of white wine, or a $4 coffee on their $120,000 salary – knew exactly what they were doing and they were allowed to do it, until last October when the shit hit the fan as a result of my FOI application that would eventually expose the whole rort.

It doesn’t matter if the money has since been repaid and I don’t know, in this particular case, if it has. (Once again, the council is not answering questions.)

And it doesn’t matter how the council now tries to spin it: it was just one rogue manager, discovered – miraculously – just a month before my FOI, all repaid, all tidied up, a mere blimp, just a “social media” storm…

None of that is true.

What matters it that we are exposing a culture that led us to the financial mess we are in today and for which we are paying dearly.

And all of those behind the rot have to be held accountable, wherever they may be today, including those who have since left Versailles and are now living in Coquenball mansion.

I am waiting to see what happens next with the council’s reporting to the authorities, its investigations and its reviews.

And I am waiting to see if South Coast MP Roma Britnell’s call today for an independent investigation is heeded by the Local Government Minister.

In the meantime, we press on with our own investigations and reporting and reviews.

Thanks to your contributions to the Tip Jar, I today lodged two more FOIs on credit card usage with the council.

The answers may take a long time to come, but it is worth the wait.

Thankyou so very much to those who have supported The Terrier with a contribution to the Tip Jar: this investigation is the Tip Jar at work. You can be part of it by clicking below.

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