Dunedin’s Mayor Cull misrepresents fraud report

In response to the damning Deloitte report detailing a possible $1.5 million fraud (for as far back as was decided to investigate) Mayor Cull has made some very questionable statements.

On Radio NZ (Council under fire after fraud report) Cull says:

“Deloitte have concluded that there was no other staff member that benefited financially from the fraud.

“There were control failures and responsibilities but it was clear there was only one perpetrator in the council.”

That’s not what the Deloitte report concludes at all. Under Were other Council staff involved?

DCCDeloitte3

Cull is wrong on a number of counts.

  • Finding no evidence is quite different to “concluded that there was no other staff member that benefited financially”.
  • Obtaining vehicles at a discount to wholesale market value is a financial advantage.
  • Deloitte said that the police “may be interested” in staff members who paid for vehicles that the Council received no proceeds or was paid materially less than market value.

Some of the staff members at least will have known they were getting a bargain at the expense of the ratepayers. And paying Bachop rather than the council, especially in cash, was imprudent at best.

And there is major redaction of details.

In addition under Limitations the Deloitte reports says:

2.14 There is an inherent risk there are other material frauds at Council not identified in this investigation.

For Cull to put all the blame on one dead person and claim the report concluded no one else in Council benefited, when the report went as far as saying the police may be interested in staff members involved, gives me no confidence at all that the Mayor of Dunedin takes this seriously enough.

He seems more intent on sweeping embarrassments under the carpet.

His serious misrepresentation of the Deloitte report gives the impression he could be seriously misrepresenting the interests of the city’s ratepayers.

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