The fallout from the Victorian Auditor-General Office report released recently has claimed its first casualty, with Strathbogie Shire chief executive Steve Crawcour resigning last week.
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Although cleared of any fraud and corruption, Strathbogie was criticised heavily in the VAGO report for its failed policy breaches.
Mr Crawcour and the council felt the full wrath of ratepayers last week when 60 people reportedly turned up to confront it about the VAGO report.
The council was forced to suspend standing orders at its special meeting to take questions from the attendees.
According to a VAGO audit, Strathbogie Shire Council failed to follow its own procedure selling and providing staff cars.
The council was cleared of any fraud or corruption, however VAGO provided one specific recommendation to Strathbogie, stating ‘‘stop selling and providing cars to staff’’.
According to the report, Strathbogie was ‘‘unable’’ to provide evidence it followed its own procedure.
The report said the council’s procedure stated all council-owned vehicles ‘‘will be disposed of by way of tender, auction or trade-in ... however in exceptional cases the CEO may approve the sale of vehicles to employees or former employees after informing council of the proposal and the special reasons for such a sale’’.
VAGO provided six examples where Strathbogie did not adhere to its own policy from data collected between July 2015 and February 2019.
‘‘Strathbogie purchased a fleet car in March 2015 for $31754.55. In July 2018, when the council decided to dispose of the vehicle, it sold it to a staff member for $11500,’’ one example said.
The report also said on two occasions council paid for new tyres and roadworthy certificates after selling or providing the car as an exit package to an outgoing staff member.
VAGO added the council’s response was ‘‘these (exit packages) were part of ex gratia payments and therefore the council’s policy for the disposal of vehicles does not apply’’.
‘‘The council note that they paid for new tyres at times to ensure vehicles were in a roadworthy state when the council transferred ownership,’’ it said.
The report went on to say there was an example where a former manager used council funds for inappropriate, however not fraudulent, use during a business trip to Melbourne.
According to the report, Strathbogie’s Discretionary Expenditure Guide states ‘‘the provision of alcohol is not considered a reasonable expense. Exemption requires CEO approval’’.
‘‘A Strathbogie manager used a council purchasing card to pay for a dinner attended by six council staff, including a senior executive,’’ the report said.
‘‘The receipt for the dinner was for $298 and included beer, wine, vodka and other alcoholic ‘shots’.
‘‘The staff had been working in Melbourne over the weekend at a food and wine trade event, promoting the shire and its businesses.
‘‘Under the council’s guide, alcohol is ‘not considered a reasonable expense’ and employees must seek exemption from the CEO. There was no evidence of CEO approval for the purchase of alcohol.
‘‘The senior executive approved this transaction. Strathbogie advises that to offset unbudgeted overtime and weekend work, the council pays for accommodation, meals and drinks.
‘‘The council also advises that it ceased the purchase of alcohol under any circumstances from February 2019.’’
Mayor Amanda McClaren said in a statement Mr Crawcour ‘‘has been pivotal in steering council into a sustainable financial position and closing the infrastructure renewal gap’’.
‘‘Steve has led the organisation to deliver significant capital works programs which have brought infrastructure in the shire up to a much higher standard,’’ Cr McClaren said.
‘‘He has also led significant improvements in performance levels in areas such as customer service, tourism development and waste management.
‘‘On behalf of council, I’d like to thank Steve for his 10 years’ service to the Strathbogie Shire and wish him all the very best for his future.’’
Mr Crawcour had been with Strathbogie Shire for 10 years and had been the chief executive for eight years.
Ratepayer Caroline Keenan attended the recent meeting.
She said many people were outraged by the council’s initial response and people echoed Cr Alistair Thomson’s statement that the council and staff had failed to ‘‘grasp the seriousness of the report’’.
Ms Keenan said Mr Crawcour’s resignation could allow the shire to start fresh.
‘‘We now have a genuine opportunity for Strathbogie Shire to develop the type of culture we want going forward,’’ Ms Keenan said.
‘‘It is the correct decision because ultimately the buck stops with the CEO.’’
Ms Keenan said the resignation was a good result for the hard-working shire staff.
‘‘It hasn’t been fair, they’ve felt their reputations have been dragged through the mud simply because some of those at the top were doing the wrong thing. They deserve better.
‘‘Many shire residents have been frustrated for a long time and it’s pleasing to think we can now look forward with a fresh start and set about developing a culture where activity (such as that outlined in the VAGO report) simply won’t occur.’’
The council planned to hold a special council meeting yesterday, when The Telegraph went to print, where it was to consider the organisation’s response to VAGO’s 12 recommendations.
Deputy chief executive Phil Howard will become interim boss until the recruitment process for a permanent replacement takes place.