Carol Altmann – The Terrier

Look closely, this is the slow ruination of a public reserve by Lyndoch Living through ongoing, illegal parking with impunity.

They are photos of Scoborio Reserve, a public reserve on the north side of Lyndoch and the original site of the Warrnambool botanic gardens.

It is named in honour of a head gardener, Charles Scoborio.

It’s a place where a few remnant scraps of native vegetation cling to what used to be a rich habitat along the banks of the Hopkins River as part of the Peek Whurrong lands.

Yellow-crested black cockatoos, pink-chested galahs and nesting magpies still like to hang out there.

And now, bit by bit, it’s being lost to the expansion of Lyndoch.

Lyndoch is turning the eastern end into an unofficial staff car park because it has failed to ever provide enough staff and visitor parking on its own land.

The reserve is becoming a mud bath.

What was once a handful of cars has grown to 30 or more a day.

That’s because the opening of a mini medical clinic at Lyndoch and demolition work for the $22 million medical clinic has pushed scarce parking on site to breaking point.

Lyndoch has even had the gall to direct staff – in writing – to park on land that it doesn’t own because it couldn’t be bothered to find its own solution.

And what have the WCC officers done about it?

They haven’t, as you might expect, told Lyndoch to stop.

In fact they haven’t moved one inch to protect the reserve from this illegal activity.

No, what they have done is actually far worse than doing nothing: they are looking at ways to let it go on.

The council officers – NOT the elected councillors* – are busily working to solve a problem that is not their problem and are offering up a piece of public land in the process.

In other words, if Lyndoch breaks the law, the council doesn’t fine them, but bends to them.

What a disgrace.

I wish I could say this was a one off.

You may recall the large corporate sign that was installed on the side of Lyndoch last November without a council permit.

Seven months on, the permit application (lodged after The Terrier story) is still being processed.

The illegal sign is still there.

Lyndoch is also, as we speak, committing an offence under the State Planning and Environment Act by ignoring the permit conditions for its mini medical clinic.

Part of the permit issued by council staff (NOT councillors*) included a clear traffic and parking plan.

This plan has been completely ignored by Lyndoch ever since the clinic opened on 4 April.

Has anything happened as a consequence? Was the clinic forced to close immediately?

No, of course not.

And here comes the pub test.

All of these breaches are happening while the WCC chief of planning, Andrew Paton, sits on the Lyndoch board.

He is also a director of the Warrnambool Medical Clinic, a commercial, private company owned by Lyndoch that is driving the $22m project.

Former WCC Acting CEO and community services manager Vikki King is also deputy chair of a board chaired by the Lyndoch CEO and managed by Lyndoch.

How is it okay for senior council managers  – a chief planner and a former Acting CEO no less – to be anywhere near an organisation that requires multiple council approvals* as part of its expansion?

(You might also recall the secret talks between Lyndoch and the WCC about 18 months ago to sell off part of Scoborio for a childcare centre before exposure by The Terrier cut that off at the pass.)

The WCC says Mr Paton has declared a conflict of interest in all planning and applications from Lyndoch* and has not been involved in any decisions.

And Mr Paton, for his part, told me both positions he holds with Lyndoch are, “to date”, voluntary.

I have no doubt Mr Paton has acted with integrity, but that is not the point.

The question is, why would he put himself in that position in the first place and why would the WCC allow it?

If Mr Paton was a board member of a building company that was rolling out $100m worth of housing on Hopkins Rd hill, eyebrows would be up.

Why is it not the case here as Lyndoch rolls out a $100m masterplan*?

This is precisely the “wheels within wheels”, “who-you-know” rubbish that the people of Warrnambool are sick of.

We are all tired of doing the right thing – applying for permits, parking within the lines, paying our fines – while others sail past in the express lane of exemption and ruin public property in the process.

Insiders and outsiders.

As I wrote after the Schneider court victory, those days are done and it’s time for the WCC to end it, regardless of who is in charge.

* Not one part of Lyndoch’s $100m masterplan so far has gone to full council for approval by the elected councillors. Each part has been signed off by delegation.

Carol Altmann – The Terrier

Lyndoch Living has taken to Facebook today to urgently flog off the fencing around the site of its proposed $22 million medical clinic, strongly suggesting work will start within a week.

The big hint? It needs the whole lot packed up and gone by Monday.

And why wouldn’t they be putting the pedal to the metal?

There is nothing like getting a cement slab down to try and shut down growing community concern around the viability of this project.

More than 600 people have now signed a petition started by the “Keep Lyndoch living” action group asking for the State Government to intervene and pause the project until these concerns are addressed.

This petition asks for nothing more than an independent review, just to make sure that this massive investment by Lyndoch – the largest in its history – is sustainable.

But 600 people is obviously not enough to stop the Lyndoch Living juggernaut.

No, it presses on regardless, rolling right over the top of the community concerns and flattening them like it did the Tomlinson dementia wing with its established gardens, vegetable beds and green lawns.

The residents, you will recall, were shuffled off to the spanking new Swinton Wing, where they could peer through the windows at the destruction of their former home.

Grass and gardens are so yesterday, with that “old” Lyndoch slowly being replaced by cement, rooftop gardens, and a medical clinic that could possibly send Lyndoch broke.

And despite being owned by the community, Lyndoch feels under no obligation to explain anything to the community about its decisions.

Simple questions like where is the money for this medical clinic coming from?

What is the benefit to the elderly residents?

Is there a business plan?

What are the expected returns?

Such concerns are dismissed as a beat-up by “troublemakers” or “disgruntled ex-workers” who must be pushed aside quickly if Lyndoch is to move on with its masterplan.

It doesn’t matter a jot that one of those raising the alarm about this clinic is former Acting Chief Financial Officer Allan Conway who has the rare distinction of actually standing up and speaking out publicly for Lyndoch.

That shows a spine, yet Mr Conway’s concerns have so far fallen on deaf ears.

And because those with the power to intervene are choosing not to act, Lyndoch is acting – fast.

But as the petition shows, hundreds of people are prepared to publicly support Mr Conway and, most importantly, the elderly of Lyndoch, and that gives me heart and hope that this fight is far from over, fence or no fence.

You can find the petition here.

Carol Altmann – The Terrier

A short post tonight.

As we know, the Lyndoch Living board has still not answered a series of questions over its plan to pour $22 million of aged care funds into a medical clinic.

This clinic is one of either two things:

an expensive trophy project that could leave Lyndoch in serious financial stress OR;

a certified winner that will directly improve the lives of the elderly and vulnerable residents of Lyndoch.

We still don’t know which.

The “Keep Lyndoch living” * group has tried to get answers from Lyndoch on behalf of the community, but has heard nothing.

It has now started a Change.org petition asking the State Government to intervene and pause the project until an independent review can address all outstanding concerns and questions.

The group will also shortly launch a Go Fund me campaign to seek a legal opinion on the rights of the community in regard to Lyndoch – a sentence which would have been unimaginable just 10 years ago.

As individuals, we have two choices: we can either join the fight for greater scrutiny of this massive project, or shrug our shoulders and leave Lyndoch to it.

No need to guess what this #justablogger plans to do. Over to you.

You can find the Change.org petition here.

*”Keep Lyndoch living” is a grassroots action group formed to become a voice for the community. Its founding members include medical Prof James Dunbar, Helen Bayne (M.Ed. B.Comm) and a former senior investigator for the Inspector-General of Intelligence and Security, Jim Burke.

Carol Altmann – The Terrier

I have learned that two staff – including a senior staff member – within the finance area of Lyndoch Living resigned today.

Another two resigned earlier this month.

In light of the legal precautions I must operate under when reporting on Lyndoch Living, you can make of that what you will.

But these resignations follow the former Acting Chief Financial Officer Allan Conway notifying the Lyndoch CEO Doreen Power of his serious concerns regarding the financial viability of a proposed $22 million medical clinic.

Mr Conway, who finished his 12-month contract in March, last night went public with those concerns.

Based on the information available to him, he does not support the medical clinic as proposed.

As a citizen, he holds fears for the future of Lyndoch Living.

And now the resignations from the inside keep coming.

When does this become a full blown crisis?

We have heard nothing from the board, who are chosen to represent the community that owns Lyndoch Living.

We have heard nothing from the chair, hairdresser and former Warrnambool City Councillor, Sue Cassidy.

We have heard nothing from the vice chair, the CEO of MPower Kerry Nelson.

We have heard nothing from the treasurer, Sinclair and Wilson accountant Kane Grant, who – surely – must be taking another, closer look at the numbers.

And we have heard nothing from any of the remaining five board members: Prof Rob Wallis, Andrew Paton, Ron Page, Suzanne Coulson and Lorraine Mielnik.

We have no independent members of Lyndoch who can speak on our behalf, as nobody outside of the board or Lyndoch has been accepted as a member in the past 18 months, and that includes our now Mayor Vicki Jellie AM.

In summary, the community has lost control of Lyndoch Living by stealth, aided and abetted by those who have blocked any involvement at every turn.

The consequences of that exclusion and obsequiousness are now, I fear, becoming clear.

I keep asking the questions in the public interest and below are the ones I sent last Friday lunchtime so the Lyndoch CEO and board knew what was going to be published Sunday night and had every opportunity to respond.

They have chosen not to.

In the face of this silence, I can only keep raising the alarm and hope that the community decides it has had enough and a group of community representatives demand the board hold an emergency meeting, with a full report back to the community they serve.

Email Friday 16 April, 1.25pm:

Dear Lyndoch Media Unit, Ms Power and board members,

I am writing to offer the opportunity for comment on the following matters for a piece I am preparing to publish this Sunday night.

I have received confirmation that the immediate former Chief Financial Officer of Lyndoch Living, Allan Conway, does not support the construction of the proposed Medical Clinic at Lyndoch Living and that Mr Conway has expressed his concerns directly to the CEO.

Further, in his capacity as a private resident of Warrnambool, Mr Conway has also expressed a broader concern over Lyndoch’s future viability.

Given the seriousness of a CFO raising such concerns and the governance responsibilities of Lyndoch Living, my questions to the CEO, to the board chair and to the board treasurer are as follows:

1. Has the CEO notified the board of Mr Conway’s concerns in writing?

2. Has the CEO notified the Department of Health and Human Services Victoria of Mr Conway’s concerns in writing?

3. Has Mr Conway been contacted by the CEO and the board in response to his concerns and to discuss them further?

4. What action/s does the CEO and board intend to take in response to Mr Conway’s concerns?

5. Given the limited surplus funds of Lyndoch Living, can the board outline where the funding is coming from for the $22 million Medical Clinic project?

6. Is the board comfortable with the level of risk associated with the Medical Clinic project?

7. Has a complete business plan been prepared and presented to the board for the Medical Clinic project?

Carol Altmann – The Terrier

Lyndoch Living, having recorded a fifth deficit in six years, is digging into residential bonds to fund its $100m masterplan.

And a warning – figures ahead, lots of figures – as we dive again into the swirling financials of Lyndoch Living.

One, two, three…jump!

When you bob up you will see that figures lodged by Lyndoch Living last week show an even greater loss – a $2.4 million deficit – than was reported at last October’s AGM (the one we were not invited to Zoom, but could watch later on YouTube).

The annual information statement lodged last week with the Australian Charities and Not for Profit Commission reveals a $600,000 increase on the $1.88 million loss reported at the AGM and in Lyndoch’s full financial statements to the commission.

The $2.4 m is the loss recorded by Lyndoch without taking into account the profit from the Warrnambool Medical Clinic, which it bought in 2019. Either way, it is the fifth deficit for Lyndoch in six years.

This doesn’t seem to trouble the board.

As reported here last November, Lyndoch’s overall asset base (assets minus its liabilities) also continues to slide and is now $47.6m down from $69m in 2015.

This doesn’t seem to trouble the board either.

There is a lot to digest in the 60-page financial statement, so I am going to break it into bite-sized chunks tonight and in follow-up pieces.

First, the report shows us that Lyndoch has funded at least part of its $13 million Swinton Wing expansion by doing something it has never done before, which is borrow money.

It has visited the bank and also borrowed a big chunk out of the $26 million it holds in residential bonds paid by residents.

From this $26 million in bonds, Lyndoch has thus far extracted $10,944,323.

By law, as long as an aged care provider can cover its residential bond refunds for the next 12 months, it can dig into the rest and repay it down the track.

If an aged care home defaults, the Federal Govt will pick up the tab, so it’s kind of a taxpayer-backed Ponzi scheme that relies on an aged care home doing the right thing.

It’s also cheap, interest-free money, but concerns about how these bonds are being used is one reason (among many) that the whole bond scheme is now under review as part of the Royal Commission into Aged Care.

The loans, of course, will need to be repaid at some point, including fairly substantial interest on the bank loans, despite low interest rates.

In 2018, Lyndoch paid zero interest on any loans.

In 2019, it paid $62,420.

In 2020, it paid $372,669.

As of 7 July 2020, Lyndoch signed up for another loan from the NAB for $3,386,000 which is due to be repaid by June 2022.

This was needed to fund the “redevelopment of a residential building” which, I assume, was the blowout in cost of the Swinton Wing.

That project, where residents are not allowed to hang any pictures on the walls despite paying huge bonds which helped fund it, grew from a budget of $10 million to $13 million.

Relying big on borrowed money is new territory for Lyndoch, which once upon a time used to spend only what it had, what the government gave it, and what it raised from the public.

But Lyndoch, as we know, is now a long way from those comfortable shores as it sails into a $100 million masterplan under the captaincy of a CEO and board that firmly believes you must spend money to make it.

This is why in 2019 Lyndoch bought the Warrnambool Medical Clinic, Health Spot and May Noonan Hostel, in Terang, for around $3.3 million.

(Lyndoch also recently hired JB Were – who will charge fees accordingly – to look after its complicated investment portfolio. We are not in Kansas anymore, Toto.)

The Warrnambool Medical Clinic last year turned over $3.8m in revenue, but had $2.8m in expenses.

According to the financials, the clinic returned a final profit of $539,249 to Lyndoch Living in 2020 which is not to be sneezed at… but $372,000 of this will be spent this year paying out the original owners of the clinic as the final instalment of the sale contract. Achoo!

The WMC was pretty much break even for last year.

As for this year, well this is when things get interesting, because Lyndoch has the wire fencing up and around its now-vacant Tomlinson Wing (built in 1991 with help from a generous donation from the Tomlinson family), all set for demolition to make way for a new, two-storey Lyndoch medical clinic to replace the existing WMC.

This clinic will have acute care, dentistry, an x-ray machine, up to 20 GPs, allied health, education rooms, a cafe, a chemist and no doubt wonderful indoor plants and a red-and-white colour scheme.

The cost? An estimated $24 million. Where is that money coming from?

The bigger question, however, is will Lyndoch Living thrive or dive under this grand expansion and multi-million dollar spend up? Time will tell.

More soon.