The Dunedin City Council has acknowledged millions of
dollars of credit-card spending, prompted by an Otago
Daily Times inquiry. Questionable purchases, staff
apologies and disciplinary action are in the mix. Chris
Morris reports.
Senior Dunedin City
Council managers have run up more than $500,000 on their
council credit cards in the past three years.
Details of the council's credit-card spending were disclosed
to media at a briefing fronted by council chief executive Jim
Harland yesterday, prompted by a request for information by
the Otago Daily Times a month ago.
The figures showed council staff had access to 206 credit
cards, of which the top 36 managers - and four personal
assistants - had together swiped their way to a $534,500 bill
in the past three years.
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Further details in today's Otago Daily Times
Total spending across all credit cards was expected to total
"probably a couple of million or more", Mr Harland confirmed.
He said the use of credit cards was the "most efficient and
cost-effective" way of accounting for council transactions.
A detailed 146-page breakdown of council spending, released
yesterday, covered purchases by the top 36 managers and four
PAs, and included $100,500 (19% of the total) spent on
coffee, food, entertainment and drinking.
Mr Harland defended most of the spending as "legitimate
expenditure" yesterday, but admitted about $7000 was by staff
meeting in nearby cafes.
"There may be a question-mark as to whether it's
appropriate."
The revelations had already prompted apologies and voluntary
repayments by "one or two" managers, he said.
"I have had one person come to me personally and apologise in
my office," he said.
More could also follow suit when other managers were spoken
to about their spending "in the very near future", he said.
Other managers had been encouraged to examine their records
and consider making voluntary repayments if required, he
said.
"There will be obviously more vigilance looking ahead."
Unauthorised spending of less than $10,000 had also led to
disciplinary action against one staff member in the past 18
months, he confirmed.
The staff member involved no longer worked for the council,
in part because of their spending, and details had been
referred to police, Mr Harland said.
He would not reveal further information about the case,
including whether the staff member was dismissed or resigned,
citing a confidentiality agreement.
Part of the test when considering whether coffees and other
expenses was "necessary business expenditure" was whether
scrutiny of it would "survive the front page of the Otago
Daily Times", Mr Harland said.
"It is ratepayers' money ... That is a test we should all be
able to meet," he said.
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