Disparaging commentary about councillors and Dunedin Mayor Jules Radich was sometimes supplemented by the chief executive bad-mouthing parts of her organisation, the Otago Daily Times has been told.
Ms Graham apologised and conceded last night she had been out of line.
"I agree my use of language, including swear words, in some recent instances was unprofessional," she said.
"While I do try to hold myself to a high standard, I had fallen into bad habits that were not acceptable, and I sincerely apologise.
"When the issue was raised with me, I made immediate changes to my use of language, proactively apologised to the mayor and to the staff member who raised concerns, and an apology was also tabled with councillors."
A source said one department would be labelled by Ms Graham "f...... useless" and another could be called "f...... idiots".
A former council manager described Ms Graham berating a staff member in front of other people.
Ms Graham would also "rubbish" the councillors and the mayor routinely, the source said.
Another former manager said Ms Graham used the term "f...tards" frequently.
Biting criticism of councillors had also been expressed at a function where there was a risk they might overhear it, a businessperson said.
Mr Radich said he did not condone the way Ms Graham had behaved in the workplace.
"Ms Graham regrets her behaviour, has shown remorse and has taken steps to change," he said.
She was effective and worked hard, he said.
"Her leadership style is direct and forthright," Mr Radich said.
"I back her because she is a highly skilled CEO who has consistently provided excellent service to the city, councillors and me over the past few years."
The ODT talked to sources inside and outside the council and in the business community and they collectively described a leader who could be injudicious in speech.
Others said they struggled to identify specific examples of concern or Ms Graham’s behaviour had improved in recent times.
At least two wished they had written down Ms Graham’s precise language, but common themes were exasperation about decisions made by councillors, characterising them as idiotic, and derogatory statements about staff.
She would say councillors could not be trusted to do their jobs, or that a "s... show" had occurred, a source said.
A businessperson described being startled when Ms Graham attacked an instance of council decision-making while attending a function last year.
"I couldn’t believe she was talking about those people like that," the source said.
This seemed to be inconsistent with conduct to be expected from a person on Ms Graham’s pay scale, the person said.
Sources said people feared retribution if they talked on the record about their concerns.
Mr Radich said Ms Graham recognised her swearing had been unacceptable.
"No-one is perfect, and over recent months she has impressed me with her ability to learn from her mistakes."
Dunedin City Council chief executive Sandy Graham's full apology:
I agree my use of language, including swear words, in some recent instances was unprofessional. While I do try to hold myself to a high standard, I had fallen into bad habits that were not acceptable, and I sincerely apologise.
When the issue was raised with me I made immediate changes to my use of language, proactively apologised to the Mayor and to the staff member who raised concerns, and an apology was also tabled with Councillors.
To assist me in making appropriate further changes I am working with an executive coach and participating in a 360degree survey in March 2025 to ensure that I achieve the improvements to which I am committed.
I am now focused on leading the organisation through the budget process and the management of the various government reforms.
