Colin James: It seems council executives have carried on like the global financial crisis never happened

Something is seriously amiss when council executives believe it is acceptable to spend ratepayers’ money on excessive amounts of alcohol, writes Colin James.

South Australian Ombudsman Wayne Lines. Picture: Tait Schmaal

Something is seriously amiss when council executives believe it is acceptable to spend ratepayers’ money on excessive amounts of alcohol.

State Ombudsman Wayne Lines has admonished Burnside Council for allowing its former boss, Paul Deb, and several general managers – two of whom are still in their jobs – for using corporate credit cards on boozy lunches, dinners and late-night drinking sessions at restaurants, hotels, small bars and cafes.

Mr Deb has responded by claiming such behaviour has been commonplace within local government and is part of doing business. It is an argument which should sit very uncomfortably with ratepayers.

In a report published late last month, Mr Lines said he did not believe spending $37,000 over four years on alcohol, meals and coffees was a reasonable use of public money. Nor did he think it was acceptable that there was a culture at Burnside Council where it was condoned.

According to Mr Deb, frequent recipients of drinks and food bought on his credit card at various restaurants, hotels and bars between 2013 and 2017 were elected members, other council chief executives, staff members and external stakeholders such as lawyers and consultants.

Former Burnside CEO Paul Deb. Picture: Sarah Reed

Some of the bills totalled several hundred dollars and included multiple purchases of top-shelf liquor like single malt whiskey and, in one case, a bottle of Moet champagne. There were also regular visits to a chocolate retailer, florists, bakeries and hot-chicken shops.

It is not the first time credit card use by council staff has been officially investigated. In 2019, Mr Lines found Onkaparinga Council guilty of maladministration after staff spent ratepayers’ money on entertainment, flowers, expensive accommodation and a roof climb at Adelaide Oval.

Last year, Auditor-General Andrew Richardson found similar credit card spending patterns at Playford, Charles Sturt and Coorong councils. He made numerous recommendations to improve card management in local government.

Why controls have not already been in place is simply inexplicable.

At Burnside, Mr Lines found lax policies around credit card use. Receipts were often missing or illegible, there were no defined rules on what they could be used for and details frequently were missing about who was receiving the alcohol and food – and exactly why.

Instead, vague reasons were given, such as staff farewells, planning days, meetings with elected members and team-building exercises. Some of these activities went into the early hours of the morning.

All of this was occurring as the private sector tightened its belt after changes to the fringe benefits tax, which enabled companies to claim money spent on entertainment.

While expense accounts were either reduced or eliminated, it seems council executives have kept carrying on like the global financial crisis had never happened.

How this has happened right under the noses of independent audit committees chaired by experienced chartered accountants is unfathomable.

These committees consist of private individuals and one elected member. Their job is to monitor council spending. Also perplexing is how external auditors engaged each year to review council finances never seem to have raised concerns.

Receiving regular updates from audit committees have been councillors who consumed alcohol and food purchased on the credit cards. Those elected members know who they are. At Burnside, there are at least five who regularly drank with Mr Deb or two of his general managers, Martin Cooper and Barry Cant.

They need to justify their actions to their constituents, while Mr Cooper and Mr Cant, who also used their credit cards to buy alcohol and food, should start explaining their actions.

Mr Deb fell out with the pair when they sent emails to councillors criticising them for not supporting staff during a lengthy dispute with an elected member, Lance Bagster.

Mr Deb is suing the council for unfair dismissal after he was sacked over a complaint lodged against him by Mr Cooper. The impending court case will further put the public spotlight on Burnside Council.

All of this does not augur well for the already tarnished image of councils. It is time local government got its act together once and for all.