SHIRE OF YORK FRAUD INVESTIGATION.

The content of this letter, sent to Tony Simpson, will not be answered. He has the usual ‘easy out’ that he cannot comment on a current Police investigation.

However, if fraud is proven it raises the specter of who else knew about it, for how long and why was any potential evidence withheld from the appropriate authority? In this case the ultimate authority in criminal investigation is the Police.

No-one, not even a Member of Parliament, should be exempt from doing their public duty when any reasonable person should know there is enough evidence to suggest a crime may have been committed.

Dated October 13, 2015

Hon. Tony Simpson
Minister for Local Government
8^th Floor Dumas House
2 Havelock Street
WEST PERTH WA 6005

Dear Minister,

Your Ref:- YORK SHIRE- Major Fraud Squad to investigate possible Corporate Credit Card misuse.

You must admit that, 2014-2015, has been more than just your average annus horribilis for you as Minister for Local government and Communities and for your abjectly dysfunctional, administratively deficient, ideation moribund department.

In February this year, Perth City Councils unanimously rejected your amalgamation proposals, which did not impress Premier Colin Barnett. The placing of the City of Canning and the Shire of York under administration are also potential black marks on your public record. Particularly York, where just two days of investigation, by a minion of yours, started a Department of Local Government and Communities inspired-‘train wreck’.

This has been followed by recent revelations that two of the most senior elected members of Local Government, the Lord Mayor of Perth, Lisa Scaffidi, and her deputy, Rob Butler, either did not know or chose to ignore the section of the Local Government Act 1995, dealing with third-party contributions to trips undertaken by councillors on council business. Either way, it is extremely embarrassing for you.

You and your department should be directly responsible and accountable for administering the Act and it may be that, neither the Premier, nor your colleagues would be particularly impressed with you and your department’s efforts in ensuring compliance with the Act.

Now you could be facing the real ‘smoking gun’, regarding reports that have appeared in The Australian, The West Australian and News Limited’s online publications across Australia.

It is the WA Police Major Fraud Squad’s investigation of possible fraudulent misappropriation of municipal funds by a former senior employee of the Shire of York through the misuse of a corporate
credit card and, potentially, other matters.

There a number of issues which could be ticking time-bombs if charges are laid and there is a successful prosecution with resultant felony convictions.

They are as follows:-

1. In 2008, the then Department of Local Government and its Acting Director General, Quentin Harrington, was advised, in writing, of York community concerns regarding the possibly fraudulent use of a Shire of York, corporate credit card. This was seven (7) years ago.

The only response was for the Shire of York Council to refuse to publicly disclose the purchases made and the amount of expenditure accrued on this card(s) until forced to do so in early 2014 under the Freedom of Information Act, 1992.
   
The Departments then Acting Director General, Quentin Harrington and his successor, Jennifer Matthews, were well aware of specific concerns- but chose to do nothing, no appropriate investigation, no divine intervention, no advice on prevention, and no proposal for a cure. And the allegations have been known by the Department of Local Government (and Communities) for seven (7) long years.

2. On November 20, 2014, you and your Department of Local Government and Communities issued the Shire of York Council with a ‘Show Cause Notice’ to why it should not be suspended, giving it 21 days to respond. 

You and your department did not accept the Shire’s response and on January 6, 2015, you suspended the council for six months.
    

This Shire of York response has now been provided to the Major Fraud Squad as definitive evidence relating to the possible fraudulent misuse of municipal funds, dating back to 2008.

Should the response contain evidence leading to felony convictions, you and your department have had in your possession, custody and control, a document of proof of criminal activity for a period of not less than eight (8) months regarding allegations first raised with your department in 2008.

You may be a baker, not a lawyer, but even a baker, who is now a politician, should know that any reasonable suspicion that a criminal act may have occurred requires you to advise the Police, then, if deemed necessary, the CCC. A Minister of the Crown has this fundamental obligation, like every other citizen.
   
At the very least, this matter should require a public explanation by you prior to the next WA
State Election on March 11, 2017. It is almost certain that in the court of public opinion, your
actions may not meet community, or electorate expectations and standards.

3. On June 17, 2015, your Commissioner for York, James Best, declared that a Corruption and Crime Commission review had determined that the process the Shire (of York) undertook to handle allegations of misconduct (against itself) was appropriate.
  
The incongruity of being allowed to investigate yourself probably escapes both you and the CCC, but not the Police.

Ironically it could become apparent, if it is proven that individuals employed by the Shire of York who found that their investigations were appropriate are, in future, charged with withholding relevant information pertaining to the fraud allegations or with being accessories to such a felony.
  
Given the above, your chances of being re-elected and holding onto your ministerial position mayhinge on an investigation and judicial process taking more than fifteen months.

However it is quite possible that you may not survive that long.
  
Premier Barnett has already:- 

a) criticized Local Government for refusing to amalgamate,

b) criticized Local Government  for raising rates by exorbitant amounts,

c) suggested that legislation be enacted to prevent future massive Local Government rate hikes,

d) suggested most CCC investigations involve allegations against Local  Government,

e) suggested that legislation should be enacted to allow the Auditor General to have more direct involvement in auditing Local Government expenditure,

f) intimated that Lord Mayor of Perth may have reasons to step aside after her CCC investigation,

These appear to have been the Premier’s initiatives- not yours, suggesting he prefers to trust his own judgement than bothering to ask for you and your department’s opinion.

It is highly unlikely that you will respond to my correspondence and I do not particularly want you to.

However, I will respond on your behalf as you would.

“Unfortunately as Minister, I cannot respond, as the matter is subject to a current, on-going
Police investigation”.

Yours sincerely

David Taylor
Shire of York Ratepayer.