Dunedin City fraud

Otago Daily Times have combined information from a police investigation file released yesterday under an Official Information Act request and Deloitte’s full report (of their investigation) that was leaked to ODT last month.

Two escape Citifleet prosecution

A police report suggests Brent Bachop’s death and a right to silence may have helped two others escape prosecution following the Dunedin City Council’s $1.5 million Citifleet fraud.

The police investigation was launched last year after Deloitte found Mr Bachop, the former Citifleet team leader, to be at the centre of the decade-long fraud.

He was found to have sold 152 council vehicles, while pocketing proceeds, and police concluded in June there was insufficient evidence to charge anyone else in relation to the fraud.

But the police investigation file, released yesterday following an Official Information Act request, questions the actions of two other parties – a Dunedin car dealer and an unnamed woman – who were not charged.

There was evidence both parties had ”potential culpability”, one for receiving stolen goods and the other for conversion of a council vehicle.

However, the death of Mr Bachop – who was not named directly in the police report – and the right to silence meant both had a defence that could not be overcome, it said.

That conclusion came despite the actions of one of the parties – a salesman at an unnamed Dunedin car dealership – being considered ”highly suspicious”, the police report said.

The ODT goes on to explain the reasoning by the Police for not prosecuting, and they name the woman and the car dealership. They didn’t name the salesman himself but I’ve seen his identity revealed online previously.

While these two individuals have escaped prosecution the burden of their exposure as highly suspect will live with them.

And Dunedin City Council has a severely stained reputation on this as well. One hundred and fifty two cars not being accounted for over ten years shows extremely lax asset management. Several senior staff have resigned since this was publicised.

Stuff also reports: Police raised possibility of others involved in Dunedin City Council Citifleet fraud.

The police investigation followed a Deloitte’s report which suggested six potential areas of criminal activities: 152 missing vehicles, credit card/fuel card spending, purchase of a motorbike, council vehicle conversion and cashing cheques for refilling parking machines.

The subsequent police investigation was to determine if anyone other than Bachop was involved in fraudulent activity, and if anyone had culpability as to the offending, or as a receiver.

Police spoke to all but three of the people who bought one of the 152 vehicles. Those three people could not be traced.

“Almost without exception the purchasers of the vehicles stated that they believed (Bachop) was entitled to sell the vehicles and had no reason to believe that he was not forwarding their money onto council,” the report noted.

So it remains unknown whether any of the car purchasers had any inkling they were getting bargains at the expense of ratepayers or not.

And the ‘negligence’ of the Council is pointed out.

The report also concluded that the council’s finance department was “negligent” in the way they maintained the fixed asset register.

“There is no evidence that anyone deliberately turned a blind eye to the errors on the register, nor is there any evidence that anyone in the finance department would have any motivation to complicit in (name withheld) offending.”

Negligence is a mild description for a finance department that did not detect that an average of fifteen significant assets per year for ten years were disappearing from their books.

And this may not be all. The Council decided to not investigate further back than ten years due to difficulties in checking through records. What records? It’s basic stuff accounting for assets.

Brent Bachop took over management of Dunedin City’s vehicle fleet from someone who was referred to as ‘Arthur Daly’.

The known level of fraud and the lack of confidence that it was the only fraud is a very bad look for Dunedin.

We can only hope that the Council now has rock solid accounting and accountability.

1 Comment

  1. Mike C

     /  13th August 2015

    @George

    How much, in total, did those 152 vehicles get sold for, and what was all the money spent on ???