Evidence is set to be given to Ibac and the Government Inspectorate with revelations of significant alleged behaviour at the Warrnambool City Council.
Below is a letter which has been sent to all Councillors and the C.E.O. from the Ratepayers Victoria.
6/10/2019
Dear CEO & Mayor,
WITHOUT PREJUDICE
RE: Warrnambool City Council (WCC) – An open letter from Ratepayers Victoria
Strong Local Government is vital for the health and wellbeing of our communities.
Your community relies upon Local Government for the delivery of important and necessary services.
Local Government is a vital employer within the region. Many staff are proud to serve their community.
It is against this backdrop that several staff have now approached our organisation with allegations of:
• Attempts over time to raise significant concerns of fraudulent spending and cover up of same;
• Systematic abuse of internal controls of authorisation of spending by management; • Coercion and direction by senior management to subvert said controls and “help hide” spending;
• Direction to suppliers to “alter” the contents of invoices to hide the true nature of expenditure;
• The use of WCC resources for personal or family benefit;
• The use of WCC assets for personal gain;
• Inadequate reporting of expenditure (thousands of dollars’ worth of transactions reported as “supplies”;
• “Parties” and “events” openly abusing the use of council funds (ratepayers’ monies); and
• WCC not investigating or attempting to recover falsely procured items.
Further, we have been advised that WCC has now allegedly sought to investigate staff who may have obtained evidence (likely without any policy breach) in an attempt to expose the significant alleged behaviour. Some staff have sought to protect themselves and plan to provide said evidence to the inspectorate and IBAC directly.
There is also growing pressure that some of the alleged conduct above was brought to the attention of the previous CEO and senior management and there may have been a “cover up” approach. Some staff have levelled allegations of intimidation and bullying for trying to expose the truth.
If there is any substance to these allegations, then this is a most concerning situation.
We have directed the staff who have approached us to immediately approach IBAC and the Inspectorate and seek confidential and protected disclosures without delay.
We respectfully suggest:
• WCC engage an external investigator to allow ALL staff with any knowledge of misconduct to freely share it; • WCC pass a resolution that a report with all findings be presented to Councillors and the Audit Committee to ensure the “full extent” is realised; • WCC seek recommendations on how to adequately prevent misconduct and the abuse of public money; and • WCC engage an external organisational development expert to immediately assist staff in repairing the cultural and reputational damage this “scandal” has and continues to cause to them by association
We believe that until all issues are openly addressed without fear of recrimination or perception of a cover up, WCC can not repair its reputational damage.
WCC staff deserve a workplace that fully supports them and their ratepayers’ interests without any recrimination.
We look forward to WCC restoring public trust.
Yours sincerely,
Dean Hurlston President- Ratepayers Victoria