GE Governance


The following comes from the in camera meeting minutes of 20th September 2011. We wish to draw readers’ attention to the following:

  • The mover of each motion
  • The seconder of each motion

We then ask readers to contemplate how it was possible for the Senior VCAT member not to declare himself ineligible much, much earlier, (in fact Day 1) given that Lipshutz’s name is undoubtedly scattered throughout countless documents involved in this VCAT hearing. And as some readers have already commented, since it was Council and not Newton, who laid the charges against Penhalluriack it beggars belief that the member would not know that his social acquaintance, Lipshutz, also just happened to be a councillor in the very municipality which laid the charges!

C. Crs Lipshutz/Hyams

In accordance with the O’Neill Recommendation (a) to further protect the Health and Safety of staff in City Management, Cr. Penhalluriack’s access to this work area be suspended and the Director of Community services be authorised to send the attachment letter to Cr Penhalluriack (Attachment B)

DIVISION

Cr Esakoff called for a Division on the voting of the Motion.

FOR                                                        AGAINST

Cr Esakoff                                             Cr Penhalluriack

Cr Hyams                                             Cr Forge

Cr Lipshutz                                           Cr Magee

Cr Tang                                                  Cr Pilling

Cr Lobo

On the basis of the Division the Chairperson declared the Motion LOST

[PS: Lobo should be recorded as voting against in the above. For some reason WordPress will not allow this alignment]

D. Crs Lipshutz/Tang

That Cr Penhalluriack be referred to a Councillor Conduct Panel to review his behaviour towards the CEO (in accordance with the allegations made) and Officers, his conduct during the investigation with respect to confidentiality, his compliance with clauses 4.5, 5.2 and 5.11 of the Councillors’ Code of Conduct and his failure to declare a conflict of interest when such a conflict existed.

A Divison on the voting of the Motion was called.

FOR                                                                 AGAINST

Cr Esakoff                                                       Cr Penhalluriack

Cr Lobo                                                           Cr Forge

Cr Lipshutz                                                    Cr Magee

Cr Tang

Cr Hyams

Cr Pilling

On the basis of the Division the Chairperson declared the Motion CARRIED

E. Crs Lipshutz/Hyams

“That Council now consider the creation of a Special Committee to deal with all matters involving the Chief Executive Officer’s Contract of Employment including but not limited to his performance review and exercise of Council’s option to renew his Contract of Employment……”

This motion then went on to list the membership (excluding Penhalluriack) and schedule. It lasted a bare 3 weeks until rescinded and replaced by a new Special Committee which now included OH & S within its terms of reference. The order of motions as presented above is exactly what is in the minutes. We believe this tells a tale in itself! Then there’s that old thorny question of record keeping itself and overall consistency. On one division Esakoff is named. On the very next division call, no-one is named. Such is the nature of record-keeping and minutes in this Council it would seem!

MR CHAMPION:  I withdraw that.  (To witness) What happened was this.  Councillor Lipshutz asked Councillor Penhalluriack to leave the meeting?—I don’t recall that, Mr Champion, and I just repeat that I am not aware that anybody actually has the authority to tell any councillor to actually leave a meeting.

I used the word tell the first time, I use asked this time, if something turns on it.  Councillor Penhalluriack’s evidence will be, sir, that Councillor Lipshutz asked him to leave the meeting.  Do you agree or disagree with that or can’t remember?—I don’t recall that.

Councillor Esakoff asked him to leave the meeting?—I don’t recall that either, sir.

And they did so in raised voices?—I don’t recall that either.

SENIOR MEMBER:  Do you think you would have recalled it if they had asked Penhalluriack to leave in raised voices?—Yes, I do, sir.

MR CHAMPION:  You say it didn’t happen?—I don’t recall that happening, I don’t recall raised voices, no.

Do you recall them asking him to leave?—No.

The reason that they asked him to leave was that they said that he had a conflict of interest as to Item 12.10.  That was what happened, sir, that’s what I’m suggesting to you; yes or no?—I don’t recall that happening, sir.

And that he protested that he didn’t wish to leave the meeting, that’s what happened?—I don’t recall that happening either.

And he left under protest?—I certainly don’t recall any protest.

SENIOR MEMBER:  Just let me explain to you.  I understand your answer “I don’t recall,” but let’s assume for a moment that, as Mr Champion said, Councillor Penhalluriack gets up and swears that he was told, and the Tribunal is going to be left with a position where Councillor Penhalluriack says something was certain, and you’re using the word don’t recall.  When I asked you last time about the raised voices you said if that happened I probably would have recalled it.  Now when you say you’re not recalling this are you saying you just don’t remember what happened or are you saying, look, if it had have happened I probably would have recalled it?  Because it’s pretty important from our point of view.  Do you understand the difference?—Yeah, I do, sir.  Look, I don’t recall.  I don’t know whether you’ve ever had the experience of being in a pre meeting of councillors but – – –

I haven’t had the experience of even being in an ordinary meeting of council?—From time to time, sir, they can get interesting to say the least.  Governments at the local level can get a bit exciting at times.  But in this particular instance I don’t recall people asking another councillor to leave, I don’t recall raised voices.  Usually when things get a bit hot under the collar and things start to spiral out of control I usually do remember those instances.

Would you call this spiralling out of control?—No.

Sorry, if there had have been Councillor Lipshutz and/or Councillor Esakoff asking Councillor Penhalluriack to leave in raised would you say that’s spiralling out of control?—I’d put that in that category, sir, yes.

MR CHAMPION:  The effect, sir, was to the extent that Item 12.10, the bullying training motion at that point was discussed at the pre meeting, Councillor Penhalluriack did not participate in that discussion?—Well, the minute actually records him leaving the room at 7.25.

The discussion such as it was, was after he left?—As I recall it there was some chatter as Councillor Penhalluriack was circulating his letter.  He then leaves at 7.25 and then as you can see from the record shortly after that all officers with the exception of the director of community services also left.

SENIOR MEMBER:  When you say officers you don’t include councillors?—No, sir, no.

MR CHAMPION:  The reason he left was so that Item 12.10 could  be discussed in his absence?—Well, I – – –

MR ATTIWILL:  I object to the question.  The reason he left?  Did he give a reason?  I mean, it’s not up to him.

MR CHAMPION:  He can’t read Councillor Penhalluriack’s mind.

SENIOR MEMBER:  He may have stated a reason, I don’t know.  You can certainly ask that.

MR CHAMPION:  What Councillor Penhalluriack’s evidence will be, sir, is that he left under protest because he was asked to leave, and you don’t remember that?—That’s correct.

Do you recall whether he did state a reason as to why he was leaving?—No, I don’t recall any reason.

SENIOR MEMBER:  Is that a convenient time?

MR CHAMPION:  Yes, if the Tribunal pleases.

<(THE WITNESS WITHDREW)

 

Aborted Hearing Leaves Many Questions Unanswered

Andrea Kellett

Glen Eira Councillor  Frank Penhalluriack is a devastated man.

After a lengthy wait and months of preparation, misconduct allegations brought against him by Glen Eira council, which he insisted were to be heard at the public tribunal, were last week aborted after three days of the expected seven days.

Evidence from only tow of the council’s eight witnesses was heard. The council’s key witness, CEO Andrew Newton, had not been called, nor had Cr Penhalluriack.

Mr Robert Davis had, he said, known Cr Michael Lipshutz for many years. In the three days, the tributnal heard argument from Charles Gunst, QC, for Cr Penhalluriack, that Glen Eira Council staff treated his client with “disdain”.

“They ignore his questions, roll their eyes when he speaks at meetings and are resistant in providing him with information,” he said. He said his client was the victim of a vendetta “manufactured” by CEO Andrew Newton and Mr Newton used false allegations of bullying to silence his critics.

Richard Attiwill, for Glen Eira Council, denied those allegations. He urged the tribunal to find that Cr Penhalluriack’s behaviour constituted “gross misconduct”. He said Cr Penhalluriack had made “very serious” allegations against senior officers in writing and that it was “not a passing rudeness or a momentary lapse”.

The tribunal heard there was tension between Cr Penhalluriack and staff at the council and that Cr Penhalluriack was considered a “bit of a nuisance”.

Council community services director Peter Jones said under corss examination that Cr Penhalluriack had denigrated him personally and that had made him angry.

After three days at the back of the court-room taking notes, Cr Penhalluriack left without, he said, the resolution he had hoped for. “I was hoping to get finality by the (council) election,” he said. “When a leopard dies it leaves its skin, but when a man dies he leaves his reputation.”

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Sporting chance urged

The demise of the Alma Sports Club, a non-profit community club, open to all, will see the loss of the only sporting facility or potential park area left in the far northwest precinct of Glen Eira. It must be retained as open space.

This precinct is experiencing a significant increase in population due to rezoning. This is the only opportunity for Glen Eira Council to secure the site for the community.

Retention of the site as council or Crown land is essential for the liveability of this part of Glen Eira. It is reputed to have the lowest ration of open space and recreational area of any of Melbourne’s municipalities.

The council claims it has no money to buy the site and does not rescue “private” clubs. But council squandered our city’s reserves, squandered our city’s ability to borrow more money, all on GESAC.

Yet the residents of this precinct are lumped with paying the greater proportion of the GESAC debt because they pay higher rates!

Dr David Dolan

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I live around the corner from the Alma Sports Club and it would be a great pity to see it replaced by apartments.

I know an energetic guy tried to get a cabaret club started there recently but was denied a permit by the council.

A par with a few tennis courts and a café would be ideal. The site needs someone who can reach out to young families in the area, offer lessons and childcare. But if that is all too hard, give us a park.

Caulfield plan gets the nod

Date: August 18,  2012

Philip Hopkins

A $1 BILLION-PLUS development at Caulfield Racecourse that will create a village where hundreds of people will live and work has been given the go ahead.

The Melbourne Racing Club yesterday awarded the contract for the project to the Beck Probuild Consortium. It will be built on five hectares of land next to the racecourse, Caulfield train station and Monash University.

The development is expected to take up to 15 years to complete and will include more than 1500 dwellings of different types, and office and retail space, including a supermarket, pharmacy, cafes, restaurants, and other health and recreational outlets.

During construction, the development is expected to generate up to 5000 jobs and an ongoing 1100 jobs once completed. Construction is tipped to start within 24 months.

The Melbourne Racing Club will also upgrade the racecourse to complement the  project. The winning consortium is a joint venture between Beck Property Group  and Probuild Constructions.

A new street, The Boulevard, will be the heart of the project, which will  comprise three primary precincts:

■Precinct 1, to the west of the development, will be a low/medium-density  residential area.

■Precinct 2 will be a mixed-use precinct with active street frontages,  tree-lined laneways with retail outlets, including a supermarket, specialty  shops, and a restaurant hub established around the new Boulevard road link.

■Precinct 3 will encompass the Smith Street precinct based in the eastern  section of the site next to Caulfield Station comprising a mix of commercial,  residential and retirement accommodation.

Planning approval came after consultation with the City of Glen Eira, the  local community, state planning authorities, local state MP David Southwick and  other stakeholders.

Melbourne Racing Club’s upgrade of the racecourse infield will include five  activated precincts, exercise pods, a jogging trail, a lake pathway, lake  boardwalk, barbecue, toilets, a picnic area, a dog off-leash area, and a junior  football pitch.

Parking for the new project will be fully contained within the development,  with race-day parking staying in the existing racecourse car parks.

A communication plan will be produced to outline the timing and detail of the  development as master plans are finalised.

MRC chairman Mike Symons said the development would  bring a new vitality to  the area.

Consortium director Sam Beck said the project would deliver a world class new  suburb for Melbourne.

Probuild managing director Phil Mehrten said it was a great outcome for  Melbourne’s construction industry.

”This will mean jobs and investment, and is a vote of confidence in the  future of Melbourne’s development industry,” he said.

Read more: http://www.smh.com.au/business/caulfield-plan-gets-the-nod-20120817-24e03.html#ixzz23qrFe1Ed

This is a follow up to our previous post and again features the testimony of Peter Jones. Given his stated role as ‘minute taker’,  the following exchange makes for important reading we believe. Our previous formatting still applies.

 

MR GUNST:  If it’s convenient, sir, I’ve just got one more question on this very topic?

SENIOR MEMBER:  Yes, that’s in relation to the meeting in March I think my colleague was asking you about?—Yes, yes, it was March.

MR GUNST:  I’ve got one follow up question on that, sir, if I may?

SENIOR MEMBER:  Yes.

MR GUNST:  Have you still got the Tribunal book there?—Yes. 

Would you go to p.272, please.  If you look on p.272 to 273 do you see that’s a record of the assembly of councillors of 22 March 2011, the meeting that you’ve just been asked about?—Yes. 

And it tells us a meeting commenced at 6.45 with eight councillors present, one apology, Councillor Lobo and yourself, Peter Jones?—Yes. 

Then it’s got, “Matters considered, occupational health and safety”.  That’s the euphemism for Mr Newton’s bullying complaints, isn’t it?—Yes. 

Then that meeting adjourns at 7.40 and the meeting resumes at 7.45 in the presence of – and everybody’s there except Councillor Penhalluriak and Councillor Lobo again is an apology and Mr Newton’s there and you’re there as well, is that right?—That’s correct, yes. 

You were there, as you’ve said repeatedly, only as the minute taker for this assembly meeting on 22 March?—Yes. 

In particular in respect of the only item that was considered in that first session from 6.45 to 7.40?—Yes. 

The occupational health and safety issue?—Yes. 

You were only there as a minute taker you said?—That’s correct, yes. 

In fact you didn’t take any minutes, did you?—Some notes would have been taken of the meeting but these are the minutes of the meeting, yes. 

There was for nearly an hour, 55 minutes a meeting, it starts at 6.45, adjourns at 7.40 and the only matter considered is the occupational health and safety matter, as p.272 of the Tribunal book records?—Yes. 

This is the time where this bullying complaint is raised and Councillor Penhalluriak wants to know what it’s all about and he asks you and your response, so you say is, “I’m    just here as the minute taker”?—Yes. 

The meeting goes for nearly an hour and you are only there as the minute taker and you didn’t in fact take any minutes, is that the position?—The assembly of council that you have on page – – – 

SENIOR MEMBER:  There’s nothing in the minutes to suggest it was the occupational health and safety that was considered, is there?

MR GUNST:  It’s in the middle of p.272.

SENIOR MEMBER:  I know but that would be the second meeting, isn’t it?

MR GUNST:  I will clarify it with the witness but I don’t read it as that.  I read it as the meeting commenced at 6.45, persons present, one matter considered.

SENIOR MEMBER:  Yes.

MR GUNST:  And then it adjourns at 7.40, resumes at 7.45 and then has a number of matters, Optus telephone, Caulfield Racecourse, et cetera.  That’s as I read it, Mr Jones, is that a fair?—That’s correct, yes. 

Is that accurate?  Thank you.  So in that hour or 55 minutes only one issue is considered and you didn’t produce any minutes before this record, is that right?—That’s correct, yes, yes.  That’s the standard approach for council assembly – – – 

That was the one matter, sir.  I’m sorry to for taking you after – – –

SENIOR MEMBER:  Thank you.

<(THE WITNESS WITHDREW)

LUNCHEON ADJOURNMENT

What features below is part of the transcript of the cross-examination of Peter Jones by Penhalluriack’s lawyer, Mr Gunst on the second day of the VCAT hearing. This relates to the allegation that Penhalluriack “humiliated” Jones via his use of the phrase “dumb mute” in the context of a private letter sent to Esakoff and cc’d only to Forge. Jones in fact states that he can only assume that it was Esakoff who passed on this letter to the administrators.

Our only intervention in the following transcript is to:

  • Italicise Jones response for ease of reading, and
  • To bold certain sections that we feel are significant. The rest of the extract is untouched except for the deletion of line numbers.

_____________________________________________________

 MR GUNST:  I won’t press the question.  (To witness) Come back to the meeting of 22 March.  You were present at the assembly of councillors on 22 March 2011?—Yes.

It was at that meeting – you were at the assembly of councillors on 22 March 2011?—Yes.

It was at that meeting that an allegation was made – sorry, I’ll stop myself there.  It was at that meeting it was disclosed that the CEO had complained that Councillor Penhalluriack had been harassing or bullying you?—I think the disclosure was prior.  I think there had been, the issues had been raised prior to that meeting, but that meeting was discussing that in that sense.

At the very least from your recollection the issue was raised at this meeting?—Yes.

The CEO was not present at this meeting?—That’s correct.

The councillors were?—Yes.

Was it all nine of them?—Yes.

Certainly the mayor, Councillor Esakoff, Councillor Penhalluriack, Councillor Forge and, to your recollection all of the other councillors?—I believe all the councillors were present.

And you were present as well?—Yes.

You were there because the CEO was not there?—That’s correct.

Was the CEO not there because he said he had a conflict of interest because this involved a complaint by him, or was he not there for some other reason?—He was not there because he thought it was a conflict of interest.

So you were there in place of the CEO?—Yes.

The CEO, as you’ve agreed with me earlier, has a statutory duty to provide timely advice to council?—Yes.

You were in his shoes at that meeting on that day?—I really saw myself on that day as a minute taker and that was the role that was explained to the group at that time.

I’ll come back to that in a moment.  When this issue was raised, it was raised at this meeting, it may have been raised earlier but it was certainly raised at this meeting of 22 March?—Yes.

It’s what I’ll call the OH&S matter or the bullying complaints by Mr Newton, whatever you term it, that issue was the issue raised?—Yes.

Councillor Penhalluriack asked what he’d done didn’t he?
That’s correct, yes.

He asked you what he’d done?—That’s correct, yes.

You didn’t answer him?—I did answer him.

He says you sat there mute?—Yes, I know he did.

SENIOR MEMBER:  Could you keep your voice up please?—Sorry, yes.

MR GUNST:  Yes, he does say that?—Yes, he does.

And Councillor Forge says it too?—Yes.

None of the other councillors who were at that meeting, the other seven of them, are coming to give evidence?
Right.

So at the moment it’s Councillor Penhalluriack who said – I’ll go back a step.  It’s a serious allegation, an allegation of bullying or harassment of a council staff member by a a councillor isn’t it?—Yes.

When it was raised with him Councillor Penhalluriack said in essence “What’s this about, what have I done?  What is it said that I have been doing?”  That was what he was asking wasn’t it?—Yes.

That’s a fair question to ask when a serious allegation is made against you.  You’d like to know, well, what have I done, what’s this about?  And that’s what he did ask?—Yes.

He seemed genuinely mystified and seemed genuinely not to know what it was that it was said that he’d done didn’t he?
Yes.

He asked you “What have I done”?—M’mm.

His evidence and that of Councillor Forge is that you didn’t answer?—I did answer.

They say you sat there mute?—Yes.

Not acknowledging that he’d asked you a question, not responding to the question, not providing him an answer to this very serious matter that has been raised.  That’s their evidence and you’ve read that?—Yes.

That’s their evidence?—Yes.

You say you did provide an answer do you?—Yes, I did.

What did you say?—I said my role was to take the minutes and that it was up to the mayor and other councillors to discuss this issue.

You see, that’s not what your witness statement says, Mr Jones.  Have you got your witness statement, Exhibit B, there?
Yes.

Do you see in Paragraph 4 you say that you saw a copy of this letter of 2 April.

SENIOR MEMBER:  What page is this?

MR GUNST:  It’s Exhibit B, sir.  It will be p.256 of the Tribunal book and it’s Exhibit B, Mr Jones’s first witness statement, 266.  I’ve got the numbers wrong, I apologise for that.  You have your witness statement there do you, Mr Jones?—Yes.

You see in Paragraph 4 you say you saw a copy of the letter dated 2 April from Councillor Penhalluriack to the mayor in mid 2011, and then over the page in Paragraph 5 you say “As to the reference to me sitting as a dumb mute, when I read this I was very annoyed, I was angry at Councillor Penhalluriack.  It was not my role to contribute to the discussion.  My role was to take the minutes and I was asked by Councillor Esakoff to be there for that purpose as the CEO had a conflict of interest,” et cetera.  Do you see what you say in Paragraph 5?
Yes.

Do you agree that there is no mention in your witness statement at all of you responding to Councillor Penhalluriack’s question about what he’d done wrong?—Yeah, that’s correct, yes.

So the position is this isn’t it; you’re at this meeting and you’re standing in the shoes of the CEO, you’re the senior officer present?—Yes, I’m the senior officer present, yes.

A serious issue is raised?—Yes.

And Councillor Penhalluriack, who seems genuinely mystified by what the issue’s about, asks you as the senior officer present what this issue was about?—Yes.

You didn’t provide any substantive response?—I guess the point I’m trying to make is I responded but I didn’t answer his question in that sense.

Thank you for that.  He says in his evidence, and you’ve seen this, he says you didn’t provide any response?—Yes.

Councillor Forge says you didn’t provide any response?—Yes.

Your evidence now is that you provided a response but it was not one of substance as I understand it, you said “I can’t answer you, I’m just here as a note taker,” or words to that effect?—That’s right, that’s correct.

That story, that version is not in your witness statement is it?—I don’t think it contradicts my witness statement at all.

That’s an argument, Mr Jones, not an answer to my question, and I’ll press you for an answer to the question.  That version of events is not in your witness statement is it?  You see, what you say is, I was angry at Councillor Penhalluriack.  It was not my role to contribute to the discussion.  My role was to take the minutes.  You’re responding to Councillor Penhalluriack’s evidence where he says he’s mystified, he doesn’t know what this allegation is about and he asks you what it’s about, and he says “The man sat there mute, he didn’t acknowledge my question and he didn’t answer my question.”  In answer to that you say, “It was not my role to contribute to the discussion” don’t you?—That’s right, yes, that’s correct.

Today in the witness box what you’re saying is it was not my role to contribute the discussion, I answered him to the extent of telling him that I was just there as a note taker or words to that effect?—That’s correct, yes.

When did you make that story up, Mr Jones?—It’s not a story, it’s the truth.

When did you first tell anybody that story?  It’s not in your witness statement?—I guess my role wasn’t to contribute to the discussion.  I don’t believe I did contribute to the discussion.

You have a duty as an officer which you agreed with me earlier to provide responsive service, is that right?—That’s correct, yes.

You’re standing in the shoes of the CEO at this meeting?—Yes.

The CEO has a duty to provide timely advice to the council?
Yes.

You have an assembly of councillors, yes?—Yes.

And a serious allegation is made against one of those councillors and the man says what’s this about, what have I done in essence.  I’m paraphrasing but that’s what he asked you?— You didn’t answer him.  You gave no substantive answer?—I simply said I’m here to take the minutes.

Both he and Councillor Forge say you didn’t say that and it’s not in your witness statement but you now say that that’s’ what you said, is that right?—Yes.

Who was it or from where did you get this idea that you couldn’t respond, that you couldn’t provide a responsive service as your duty required you and you couldn’t provide timely advice as the CEO in whose shoes were standing on that day was obliged to do?—In discussion with the mayor prior to the meeting it was clear that I was there in my role at that meeting was to take the minutes.  It was seen as primarily a meeting of councillors to discuss the issue of the Williams and I guess I didn’t see – you know, it put me a in a very difficult position and my role – – –

SENIOR MEMBER:  Mr Jones, could you look towards the clock?
Sorry.  My role was to – – –

No, Mr Jones, look towards the clock.  Perhaps if you just turn around straight into your chair and then you might look – I can assure you and you’ll correct me if I’m wrong but Mr Gunst won’t think you’re rude if you don’t look at him when you’re talking?—And my role was to take the minutes.

MR GUNST:  So do you say that it was Councillor Esakoff prior to this assembly of councillors who told you that you should not answer questions?—I didn’t set out not to answer questions.  I set out to basically take the minutes of the meeting.

Perhaps you could answer my question now.  Do you say at the meeting before the assembly of councillor that Councillor Esakoff told you not to answer questions?—No, I’m not saying that.

You’re saying she told you simply to take the minutes?—Yes, that was the – – –

And made it clear to you that that was your only role and you shouldn’t go beyond the boundaries of that role?—That’s right, yes.

So you had a meeting with at least one councillor prior to the assembly of councillors?  The answer is yes, isn’t it?
Probably at some stage I had that discussion with the mayor, yes.

The very sort of pre meeting with a select group of councillors that you said not long ago would be quite improper for an officer to attend, Mr Jones?—It’s quite normal to have a conversation with the mayor about the conduct of a particular meeting.

SENIOR MEMBER:  I don’t know it was a select group of councillors.  It was a conversation between one councillor and a council officer.

MR GUNST:  Thank you, sir, I stand corrected.  (To witness) In any event, you say that the mayor gave you to understand that you shouldn’t answer any questions in this meeting?
No, I wouldn’t phrase it that way.  In the discussion with the mayor it was clear that my role was to take the minutes.

And nothing more?—And nothing more, yes.  I couldn’t – yeah.

But when you say it was clear from that discussion, it was clear because the mayor made it clear to you, that’s your evidence?—It was also what I wanted to do in that meeting in terms of my role.

Those are two very different things, Mr Jones, and I’d like to find out which is right or which predominated.  Was it because the mayor told you to take the minutes and nothing more or was it because you didn’t want to answer questions?—It was a discussion and the outcome of that discussion was that was my role was to take the minutes.

That doesn’t answer my question?—I don’t – – –

That avoids answering the question, Mr Jones, with respect?—I don’t know how to answer your question in any other way because there was no – I mean what you’re suggesting is that I was directed by the major but I wasn’t necessarily directed.  It was what came from a discussion.

Mr Jones, I’m not suggesting to you that you were directed by the mayor.  I’m not suggesting – in fact if anything I’m suggesting to you the contrary of that.  I’m suggesting to you that the decision to not answer a question of substance put to you was your decision?–I think it was seen as more than my decision.  It was – – –

In any event, it accorded with your preference?—Yes, it accorded with my preference.  I’m happy with that, yes.

Your strong preference was to take the minutes of this meeting and not answer any questions?—My strong preference at this meeting was to be clear about my role.

Your preference, I suggest, was not to answer any questions of substance?—My preference was not to get into the debate between councillors about the CEO.

When Councillor Penhalluriak asked you what he’d done wrong when this serious allegation was raised you didn’t provide any answer of substance?—That’s correct, yes.

Apart from, as you now say, I’m only here to take the minutes, as you would have this Tribunal accept, you made no answer of substance?—I didn’t answer – I didn’t provide – yes, that’s correct, yes.

Insofar as he – it’s an important question, wasn’t it, that he asked?  It was an important issue, you’ve agreed with me about that?—Yes.

If the man genuinely didn’t know what was being alleged against him he was entitled to ask what this was about, wasn’t he?—Yes.

And he was entitled to get an answer from someone?—Yes.

And he asked you?—Yes.

And he didn’t get an answer from you?—Not a substantive answer, that’s correct.

So far as the topic was concerned you remained mute, didn’t you?—No, I spoke.

You spoke to say you were the minute taker?—Yes, that’s right.

You uttered not a single word in substantive answer to the question that he asked you?—That’s correct.

But so far as the substantive question that he asked you was concerned you sat there mute?—I’m not – I spoke so I mean I wasn’t mute.  I mean – – –

Do you see that a councillor – this is an important issue, as you’ve said, and Councillor Penhalluriak was entitled to ask what it was it was said he’d done wrong.

SENIOR MEMBER:  Did you at that point know what the bullying allegations were against Councillor Penhalluriak?—I didn’t know the full extent of the allegations because I hadn’t really seen the full extent of the allegations.

You had or you hadn’t?—I hadn’t seen the full extent.

MR GUNST:  You could have said that, couldn’t you?  You could have said I don’t know, or I don’t know the detail?—I guess sometimes in these circumstances if you are trying to state out what your role is at a meeting it’s better to restate your role.

Or was it that you were not sure of the party line, you weren’t sure of all that Mr Newton was wanting to say and you didn’t want to contradict something that might be said later?—No, that’s not correct.

Would you accept that the words dumb and mute are a tautology, they’re interchangeable words?—Not necessarily, no.

I suggest to you, Mr Jones, that on this day you failed in your duty.  You had a duty as an office to provide a responsive service to councillors and standing in the shoes of the CEO you had a duty to provide timely advice and when asked a direct question by a councillor about an important matter you had a positive duty to respond with such information as you had about the issue and you failed to do so, what do you say to that?—I think that it was the responsibility of other councillors to discuss the issues with Councillor Penhalluriak.  At that point I was there as a minute taker and it was not my role to discuss whatever I might have known at that point with Councillor Penhalluriak but the discussion was between councillors and that was the purpose of the meeting.

But it wasn’t between councillors.  You’re a senior staff member.  You work closely with Mr Newton day in, day out, is that right?—Yes.

The councillor says, “Well, it’s said I’m bullying Mr Newton, what have I done, Peter have you ever seen me doing anything like that to Andrew Newton”.  You could have responded, couldn’t you?  You could have assisted the discussion.  You could have provided timely advice to the councillor who was entitled to ask about this important matter, couldn’t you?—I think that – I think the role that I did in that meeting was the appropriate role and the role was not to get involved in the discussion because the issue was one that councillors were wanting to talk about and I was there for the specific purpose.

I suggest to you that in sitting mute or effectively mute you’ve breached your duty as an office and that the description of you sitting there as a dumb mute in this letter privately between two councillors was entirely appropriate in the circumstances, what do you say to that?—I think that for anybody to be called a dumb mute is incredibly derogatory.  I was and still am particularly angry at being called a dumb mute and it’s clearly used as a pejorative term and he knew why I was there and I think it was – I just think it’s disgusting quite frankly to be called a dumb mute.

You still, if I may say so, this won’t get on the transcript, pretty angry about it, aren’t you?—I am, yes.

Angry about Councillor Penhalluriak?—I am in terms of this letter, yes.

Against whom a very serious allegation had been manufactured by the CEO who wanted to know what it was about.  He asked somebody who works close to the CEO day in and day out and that man sits mute and doesn’t give him a substantive answer to his question and somehow you’re angry about it.  Is that your evidence?—I was angry about the statement, yes.

And you still are today?—Yes, I am.

Somehow you failed in your duty, you work with the CEO, you know something about what these allegations are – – –

SENIOR MEMBER:  Mr Gunst, I don’t think it’s proved that he failed in his duties.  Certainly you’ve alleged that but I think that’s probably not a fair way to put it when you’re rolling it up in a number of other questions.

MR GUNST:  It’s probably a matter for final address, sir, and I won’t press it in cross-examination.  I have one more matter I could probably do in five minutes or we could break now.

SENIOR MEMBER:  All right.

 

From yesterday’s Hansard – Legislative Council. What a pity though that residents have to learn what is going on from parliamentarians rather than from their own local representatives!

Caulfield Racecourse Reserve: trustees

Ms PENNICUIK

(Southern Metropolitan)—My adjournment matter tonight is for the attention of the Premier. It is in regard to the Caulfield Racecourse Reserve, which the Minister for Health, who is in the chamber, would recall was the subject of the Select Committee on Public Land Development in 2008.

I direct this to the Premier because it concerns a letter that I know has been written to the Premier by Cr Jim Magee from the City of Glen Eira, who was recently elected chairman of trustees. He said:

The trustees are appointed by the Governor in Council on the recommendation of the minister for Crown lands, the Hon. Ryan Smith. The trust is comprised of six nominees of the Melbourne Racing Club (MRC), three councillors of the City of Glen Eira and six nominees of the minister.

Those arrangements appear to date back more than a hundred years.

During the inquiry the committee found that:

…The day-to-day management of the Crown land is in the control of the Melbourne Racing Club under delegation from the trustees.

…Evidence indicates the trustees’ practice has been to meet once a year… Their meetings are not open to the public, minutes of meetings are not made public nor is there any public release of financial statements.

MrMagee as chair was concerned about these issues. He wrote:

The Department of Sustainability and Environment publishes ‘Committee of Management Responsibilities and Good Practice Guidelines’… The trustees received a copy of the guidelines and advice from the Office of the Victorian Government Solicitor… on 24 February… that in his opinion:

It is clear that members of the general public could reasonably form the view that the nominated trustees may experience a conflict between their private obligations to the club and their duties as trustees, which could influence their decision making in relation to reserve tenure issues.

The majority of trustees have decided not to accept the advice or guidelines.

The Caulfield Racecourse Reserve is Crown land with a commercial value of approximately $2 billion. The land is used for a range of purposes, including racing-related, recreational and commercial purposes; however, as was discovered in the public land inquiry, the land is not used much for the purpose of being a public park, which was a clear purpose of the original trust deed. It is also not clear whether the trustees are governed by the Crown Land (Reserves) Act 1978 or not.

My request to the Premier is that he investigate the governance arrangements of the Caulfield Racecourse Reserve with a view to ensuring that the Crown land is subject to appropriate governance arrangements and that the process for establishing leases over this land meets all government requirements. As I said, it is not clear if and how the trustees are governed by the Crown land act and whether the 100-year-plus arrangement in place is consistent with modern ideas of good governance and the avoidance of conflict of interest.

Glen Eira councillor’s VCAT case aborted

15 Aug 12 @  05:07pm by Andrea Kellett

Glen Eira councillor Frank Penhalluriack.

Glen Eira councillor Frank Penhalluriack.

 THE MISCONDUCT hearing against Glen Eira councillor Frank Penhalluriack has been abruptly halted. 

Cr Penhalluriack was at the tribunal answering a series of misconduct allegations. VCAT senior member Robert Davis disqualified himself at 4pm today after it was revealed he was friends with another Glen Eira councillor, Cr Michael Lipshutz.

“I’ve known him for years,” Mr Davis said. “I have a social acquaintance with him.”
The hearing heard Cr Lipshutz was not expected to be a witness in the case, but that changed when Cr Penhalluriack amended his witness statement last night.Glen Eira Council’s legal team spoke with Cr Lipshutz during today’s lunch break, when his connection to the senior tribunal member was raised.

Cr Penhalluriack said he was very disappointed. “It’s cost the council a lot of money and it’s cost me a lot of stress and time,” he said. 

Mr Davis has adjourned the matter to a directions hearing on September 6.

This is an exceedingly long post but, we believe that residents should have some knowledge of what goes on in Council chambers. Tonight had all the hallmarks of a classic farce – ludicrous, stage-managed, confusing, and full of sound and fury but achieving bugger all! The most important items on the agenda (the two development applications) were brushed off in the space of 20 minutes, yet item 9.5 (Agreement between Ajax & Caulfield Bears footy clubs) went on and on and on interminably. It’s really good to know that these councillors have really worked out their priorities. When developments which impact so severely on people’s lives can only receive the minimum of attention and a garbled talkfest so dominates, then residents are in real trouble.

It should also be noted that Magee in his request for a report to move the skate park at Bailey Reserve (right next door to GESAC) to another part of the park, also suggested that this area be turned into additional car parking space. We suggest that perhaps Council can forget the whole idea of Bailey Reserve being a mini-park and turn the whole area into a car park. That should service GESAC sufficiently!

Item 9.5

Readers will remember that this issue has been discussed ad nauseum by council and involved Ajax’s alleged financial offer to the Bears to vacate Princes Park so that Ajaz Seniors would receive the ground allocation.

Moved Magee, seconded Pilling

That the clubs give council a copy of the agreement and that when council receives it it will be treated as confidential

MAGEE: Started off by saying that this is really ‘to get all the facts straight’ and to ‘move on’. Said that he had some doubts ‘in my mind’ as to what the agreement ‘had in it’. He wanted to ‘move on’ as well so the clubs should provide this agreement ‘in its actual true form’….’so we can digest it’….’and make decisions’ once we have ‘all the knowledge of what happened in the past’. Saw this as an ‘opportunity to clear the air’ and to answer the questions of whether this is ‘all above board’. This is then the chance for everyone to ‘say of course it is’.

PILLING: Said that this is the opportunity to ‘put in place a transparent process’. Said that the confidentiality clause should allay the clubs concerns about the agreement being made public so that it will be ‘seen within Council’. Reiterated that council has to be ‘transparent’…’it does things the proper way’. This will lead back to a ‘good working relationship’ with the clubs.

LIPSHUTZ: Saw no need for council to have the document ‘whatsoever’. Said that the clubs are ‘moving on’; that they are ‘tenants’ and that ‘whatever tenants do between themselves is none of our business’ if there’s no impact on Council. Since the clubs can’t sell anything like allocations because it’s council that decides this, therefore they don’t have an impact on Council. Said that rumours had got out about one club ‘refurbishing’ the pavilion and said that this can’t be done ‘because council does that’. He didn’t see ‘where this is going to go’. If they had acted improperly then he saw this as ‘an issue for their own league’…..’if council policy’ then have to find this out. Clubs have now cancelled the agreement and therefore ‘we have nowhere to go’….this…’leads nowhere’. Said that if the motion is passed then this could apply to every club every agreement and that’s ‘ridiculous’. Said that the ‘good working relationship’ could be ‘damaged by this motion’. Said that if the motion gets up that it should be confidential under Section 89(2) of the Local Government Act. If the motion is lost then he’s got an alternate motion.

 

PENHALLURIACK:  Said that the clubs have confirmed in writing that the ‘agreement has been cancelled, null and void, no longer exists’ ….’so what are we seeking?……’personal vendetta against the Caulfield Bears or against the Ajax Football Club’. Said that the paper ‘won’t tell us anything except a little bit of history’. Stated that there had been a meeting at council last night and the paper was read by three councillors and 2 other councillors refused to read it. Couldn’t understand this and said that ‘we’re simply muckraking’….’why council should dredge through history like this….’there is no advantage to anybody’. No one will benefit from seeing the paper but maybe the ‘ego of somebody will be boosted’. The paper is ‘null and void’ and hasn’t got anything at all to do ‘with council’. Went on to say that ‘confidentiality means nothing’. It can be overcome via an FOI application and leaks. Said that if the motion is lost he will move a motion that ‘council takes no further action’

 

FORGE: Said that she attended last night’s meeting and read the agreement and that ‘there was absolutely nothing wrong with it’. Agreed with Penhalluriack and that there’s ‘no suspicion’ about the parties involved.

TANG: Said that he had letters from the clubs that were given to councillors at last night’s meeting and wanted to quote from them. Asked Hyams whether the letters were intended to be given to all councillors. Hyams answered ‘yes’. Read out bits from the letters. First was from Ajax which said that the agreement was from the 27th January about ground allocations and that ‘at all times’ this was subject to council’s approval. Admitted that the club acknowledge that ‘at this point in time’ that council wouldn’t agree to their allocation to Princes Park as a result of the agreement. The Bears were ‘also suffering’ in their relationship with council. The letter then went on to state that the clubs were ‘terminating the agreement’. The second letter said that they were willing to ‘provide a copy of that agreement’ as long as it remained confidential. The letter went on to say that all ‘allocations are subject to Council’s approval’. The letter also stated that Koornang park required some work and that Ajaz was ‘prepared to assist’ but only if council approved. Finally the letter affirmed that ‘no payments had been made’. (time extension) Tang said that the dates were important because it was the 4th November that the Bears let council know that the facilities needed upgrading and that Ajax was willing to pay. Tang said that this is a ‘significant point’ that hadn’t been considered previously by councillors and he didn’t know why they hadn’t received this information.  As a result he thought that it was important that the agreement now be ‘seen in a different light’ and that council should ‘discourage clubs from entering’ into such agreements. Admitted that clubs have their own ‘motivations’ in getting the best grounds, or even allocations, and they’re doing thej right thing if they ‘bring it to council’s attention’. It is now ‘moving from a sinister event to an unfortunate agreement’. So council needs to ‘fully understand’ and therefore they need to see the agreement and supports Magee’s motion. Accepted the need for confidentiality and suggested that Magee amend his motion so that it conforms with the specific clauses of the Local Government Act on this area.

LOBO: said that they already had a resolution at last council meeting to see the agreement. Said he was ‘surprised why that agreement was not shown to all councillors’ so they could ‘study’ it and then ‘ask our officers for a report’.

HYAMS: Hyams admitted that he ‘chose not to read the document’. Said this was because of the previous motion asking clubs for the agreement and that he and Pilling were uncomfortable since the agreement ‘hadn’t been given (to them) in accordance with the resolution’. Since he was ‘representing council’ it was important that he only accepts it ‘under the terms that council had asked for it’. Agreed with Tang that ‘it’s not sinister….but something we would seek to discourage’. Understood why clubs wanted confidentiality especially since there was no ‘context’ and ‘might be used against them’ since there had already been ‘negative posts’ on a sporting blog and he also ‘understood why it may not have been appropriate to offer money to upgrade council facilities’ even though it goes on in other municipalities. Said that even in Glen Eira one cycling club had put money in to ‘upgrade’ the veladrome but ‘we at the moment prefer that we don’t do anything’ because it might create the impression that they could have greater tenure if they put money in. admitted that ‘we roll over the allocations regularly but we don’t want clubs to take that for granted’. Supported the motion and that it be kept confidential but that the motion ‘needs a bit of work before I can support it’.

BURKE READ OUT THE MOTION

Hyams asked for extension of time. Said that the question now was whether the letter read by Tang ‘should be incorporated’ into the minutes. Asked Magee if he would accept this amendment that the clubs hand over the agreement ‘for council to retain’ and it would be confidential under section 89 (2)(h) and that the letters be incorporated into the minutes.

MAGEE said that he wanted the word Senior put in. Said he was happy.

FORGE: started by saying that at yesterday’s meeting

HYAMS interrupted saying she’d already spoken to the motion. Forge then said that she’s got a question.

FORGE asked whether the copy of the agreement would be ‘retained’ by council ‘or given back’ to the clubs? Said that they were ‘quite adamant that they wanted that document back’.

LIPSHUTZ: said he wanted to move an amendment. Tang said that there wasn’t an amendment on the floor. Hyams said he asked Magee a question and Magee agreed to the amendment. Lipshutz said that his amendment would be that instead of the word ‘retain’ the word ‘sight’ be used.

Magee ‘couldn’t accept that’. Penhalluriack seconded Lipshutz’s amendment.

LIIPSHUTZ: Said the clubs were worried that the agreement would ‘go out in the public domain’ through FOI or leaked. Went on to say that if council is worried then the first thing that has to happen is that council ‘look at the agreement’ and see if it is ‘sinister, or unfortunate, or something else’. If it’s ‘sighted by council’ and they decide that nothing’s to be done then ‘that’s the end of it’. If council decides that the ‘agreement is inappropriate’ and sanctions should be applied council can do that. Was worried for the welfare of the 2 clubs ‘and their reputations’.

PENHALLURIACK: Said he doesn’t like the whole thing and that as a council they are trying ‘to destroy the 2 presidents’ and the clubs. ‘there is no need for us to see it’…it’s not an agreement anymore, it’s been cancelled….it doesn’t exist’. ‘People who are supporting this motion haven’t even seen it’. It’s going to be in the minutes and lengthy and ‘other muck-raking as well which is just not necessary’…’a storm in a teacup’. Didn’t know why council is debating this ‘when we’ve got a budget of over $100 million’….’we’re running a big business’ and spent so much time on this over sporting clubs who either don’t want to give us the agreement or are ‘embarrassed’ by the agreement and who ‘don’t trust us to keep it confidential’…I don’t blame them’ because the council ‘does tend sometime to leak’. Reiterated the argument about FOI. Said it’s like a business transaction and therefore council shouldn’t be asking for it. ‘What temerity we have’ to go to clubs and ask for a ‘private agreement’…’I am disgusted’. Went on to say that ‘no-one has given me a good reason to see this document’.

PILLING: ‘this is about transparency…..proper process’…’we’re a thorough transparent council’ and this shouldn’t ‘be tolerated’. ‘This is about proper process, proper transparency’.

HYAMS: said that he didn’t suggest the letters go in the minutes ‘to damage the clubs in anyway’ and that the letters ‘set the record straight’ that there is no agreement now.

PENHALLURIACK interrupted and said that he had said that the letters would only add to the turmoil. Didn’t think there was ‘anything wrong with the letters themselves’

HYAMS: thanked him and said that ‘normally you wait for someone to finish talking before you interrupt them’. Asked Lipshutz that if council ‘sights’ the document whether this refers to councillors and officers or just councillors.

LIPSHUTZ: answered councillors and officers

HYAMS: asked Newton that if council receives the agreement whether under the Public Records Act, council ‘is obliged to retain the document’?

NEWTON: Basically stated that the resolution from last council meeting was not a resolution of officers but of council. There is a resolution and if council wants to ‘retain this document’ then a resolution is required.

Hyams then began to study the Local Law to see if Lipshutz can sum up on an amendment.

MAGEE then asked for the amendment to be read out again.

THE AMENDMENT WAS PUT AND LOST

Hyams then went back to study the Local Law to see if a division could be called on an amendment after Lipshutz asked for one. The answer was ‘no’.

The original motion was back on the agenda.

MAGEE: Said he doesn’t know a thing about the Caulfield Bears and had received emails from one club and talked to presidents. He wasn’t interested in muckraking and that wasn’t his intention. His intention  was to ‘look at this as an auditor’ and how could council ‘make decisions on a letter they hadn’t sighted’. Can’t ignore the fact that clubs are aware that ‘one club offered another club $170,000 to vacate’ a ground ‘we owe it to both Ajax and the Caulfield Bears to set this record straight’ but ‘by keeping all this quiet’….’the document will be retained by council’ as a council document. Said he’d never leak the document and that he wants to see it and ‘would like an officers’ report’. Neither club has acted ‘inappropriately’. They acted ‘silly’. ‘Grants in Glen Eira are not up for sale’. ‘we don’t know what that $170,000 was for; we haven’t seen the agreement’. It mightn’t say this and be merely a cash offer. Said that ‘thousands and thousands’ of clubs and kids don’t have allocations and that ‘allocations need to go to clubs that are already there’. (time extension). ‘Not about being vincictive…..it’s about transparency’. Ajax has got their community day and another team were ‘denied because they went through the right process….they asked….wasn’t an allocation available’. Yet this team accepted the decision. ‘If we see the document then I…would be able to make a decision’.

LIPSHUTZ: had a question for Magee. Not allowed.

MOTION PUT.

FOR – MAGEE, PILLING, TANG, HYAMS, LOBO

AGAINST – LIPSHUTZ, FORGE, PENHALLURIACK

THIS ITEM LASTED ABOUT THREE QUARTERS OF AN HOUR!

 

First witness at Glen Eira councillor VCAT hearing

14 Aug 12 @  04:55pm by Andrea Kellett

Glen Eira Council’s Community Services Director Peter Jones was questioned for more than four hours on day two of a misconduct hearing against Cr Frank Penhalluriack.

Mr Jones was the first witness in the seven-day VCAT hearing and later council’s Community Relations director Paul Burke was questioned.

Other witnesses will include Glen Eira Council CEO Andrew Newton.

A court order prevents Leader Newspapers from publishing details of witness evidence until all witnesses have appeared before the tribunal.

Cr Penhalluriack is fighting four allegations of misconduct relating to statements he made in writing about senior officers, his refusal to attend bullying training, alleged conflict of interest and alleged misuse of position.

In April, Victorian Ombudsman George Brouwer recommended the council take Cr Penhalluriack to a councillor conduct panel as a result of five breaches of the Local Government Act.

Mr Brouwer investigated a series of harassment claims against Mr Newton, which related to Cr Penhalluriack campaigning to close a free council-operated mulch service while his Caulfield hardware store sold mulch in bags.

Cr Penhalluriack rejected an in-house conduct panel hearing, preferring to be heard at VCAT.

The hearing continues.

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