BOP council leaders’ credit card spend

Chocolate fish. Photo / Glenn Jeffrey / NZM.

Click the image above to view slideshow

Chocolate fish, free T-shirts and a book named 'Fifteen Shades of Climate” were among more than $112,000 in credit card purchases by Bay of Plenty leaders last year.

The spending – revealed through an official information request - covered Tauranga City Council, Rotorua Lakes Council, Western Bay of Plenty District Council and the Bay of Plenty Regional Council.

Tauranga City Council was the biggest spender, with 15 staff members spending more than $88,500 with council credit cards between November 8, 2020 and November 7, 2021.

The council said its spend was due to its larger employee and budget size compared to the other councils.

Rotorua Lakes Council was second, spending almost $14,500 over the same period.

Rotorua mayor Steve Chadwick was the only elected member out of all councils who held a council credit card. She spent almost $2300 with her credit card.

Rotorua mayor Steve Chadwick. Photo / Andrew Warner / Rotorua Daily Post.

Fourteen Tauranga City Council staff held organisational credit cards – one for five of its six general managers, one for each of the six general managers' personal assistants, one for chief executive Marty Grenfell and one apiece for his two executive assistants.

Tauranga City Council chief executive Marty Grenfell. Photo / George Novak / Bay of Plenty Times.

The spending included about $188 on chocolate fish, an executive team meeting at Mood on 17th Ave that cost $796 and $471.50 on the chief executive's annual car valet.

Tauranga City Council people and engagement general manager Tony Aitken said the council had significantly more employees and larger budgets than the other councils.

Staff were encouraged to use credit cards for any purchase under $200 as it reduced administration costs from processing invoices, he said, including paying for subscriptions or online invoices, such as social media advertising.

Tauranga City Council people and engagement general manager Tony Aitken. Photo / Supplied.

Aitken said the council provided a 'supply of chocolate fish” to its finance team who worked long hours at the end of the financial year and preparing the annual plan for adoption.

"Our executive team also provided a supply of chocolate fish to attendees of a series of internal roadshows, which included presentations on the Long-term Plan, the implementation of our community relations strategy, and council's vision and values.

'Spare chocolate fish have been given to staff as a form of special recognition throughout the remainder of the year.”

Aitken said the executive team meeting at Mood was a "planning day" for 36 attendees – equating to $22 per person for food and drinks.

A further $178 was spent on staff chocolates for an 'executive walkabout” on December 8, 2020.

Aitken said this was to wish staff a Merry Christmas and was usually done by the mayor, but as there was no mayor at that time, the executive team did it.

"With approximately 700 staff, the $178.03 spend on chocolates equates to approximately 25 cents per staff member.”

Rotorua Lakes Council's chief executive Geoff Williams and five of its seven deputy chief executives held organisational credit cards.

Council organisational enablement deputy chief executive Thomas Colle said the two deputies had chosen not to have credit cards.

Rotorua Lakes Council organisational enablement deputy chief executive Thomas Colle. Photo / Andrew Warner / Rotorua Daily Post.

Williams did not use his card at all over the period, accruing – as all cards did – about $53 of account fees.

Colle said the council was not considering closing the chief executive's credit card for lack of use as it had 'previous use and may be required”.

Mayor Steve Chadwick's $2279 spend was roughly splintered into thirds between food and drink, accommodation and travel, with the same amount as Williams for an account fee.

Colle said Chadwick's credit card allowed her to 'efficiently” pay for incidental expenses while doing her job and without the card she would need to claim back work expenses on her personal accounts.

District leadership and democracy deputy chief executive Oonagh Hopkins spent $757 for 25 t-shirts branded with ‘mahi' for the 2021-2031 Long-term Plan consultation. A further $185.90 was spent at Rotorua's Pig and Whistle pub on 'team building”, according to the council.

Colle said the t-shirts were given to council staff and elected members to 'promote the conversation of mahi” and ensure they were 'visible in community settings” during the consultation period.

'The t-shirts can be re-used for other council conversations.”

A council spokeswoman said the cost of the t-shirts was covered in the Long-term Plan project budget.

Two months later, Hopkins spent another $246.30 at the same pub for 'team values contribution to work for completion and adoption of [the] Long-term Plan”. Colle said this was for recognition of some staff's unpaid overtime work.

District leadership and democracy deputy chief executive Jean-Paul Gaston spent almost $127 on diesel for a van for team members to travel to Wellington for a 'management challenge”.

Colle was asked how the use of the diesel van reconciled with the council's 2021 climate action plan.

Colle said it was a team-based learning and development programme for local government staff, run by Taituarā Local Government Professionals Aotearoa, and diesel-powered engines fared 'better on highways”.

"In comparison to petrol counterparts, and are generally more compatible with large loads and driving longer distances - such as driving a van full of people between Rotorua and Wellington.”

Former community wellbeing deputy chief executive Jocelyn Mikaere spent the least of all executive members with organisational credit cards, at $633, which included $3.50 for a coke from a vending machine.

Rotorua Lakes Council organisational enablement deputy chief executive Thomas Colle confirmed three deputy chief executives had salaries ranging between $210,000 and $235,000, and four had salaries ranging between $250,000 and $295,000. The numbers had been rounded 'for simplicity”.

Bay of Plenty Regional Council's chief executive Fiona McTavish was the only staff member with an organisational credit card.

Over the year, she spent almost $4050, including more than $2400 on food and drink, and coffee meetings at cafes.

She spent about $1270 on travel, such as taxi trips or accommodation while out of town, and $152 on a book from Amazon called 'Fifteen Shades of Climate” by Dr John Maunder.

McTavish's salary is $385,066 per year.

Bay of Plenty Regional Council chief executive Fiona McTavish. Photo / George Novak / Bay of Plenty Times.

Bay of Plenty Regional Council corporate general manager Mat Taylor said McTavish's food and drink costs were a 'legitimate business expense” when a business meeting was held at a venue where refreshments were provided.

The council completed a $22.6m refurbishment of its Tauranga offices, where it is based, in 2019.

'The credit card process provides a clear, transparent, and risk-free arrangement that allows for formal reporting through any LGOIMA requests.”

Three staff members at the Western Bay of Plenty District Council held organisational credit cards, but only one – the finance and technology services group manager Kumaren Perumal – used it.

Perumal spent more than $5200 on work resources, travel – such as a $505 annual Koru club membership – and almost $1700 on staff events.

Credit card expenditure was also requested from the Lakes and Bay of Plenty District Health Boards, but no staff nor elected members held credit cards in those organisations.

-Local Democracy Reporting is Public Interest Journalism funded through NZ On Air

5 comments

Chocolate fish !!

Posted on 21-03-2022 22:44 | By The Caveman

About says it all - ratepayers being taken for a RATE RIDE !!! NO council employee, including the CEO, should have a credit card that they can use to buy whatever they like !! Want to spend on something - put it on your OWN CC, and then claim it back AND answer the question - was the spend needed and JUSTIFIED ??


No wonder they struggle to find staff

Posted on 22-03-2022 06:59 | By AJSommerville

I will keep my private sector job than face a huge story on a small amount of spending. Here you go team for a year where you had to put up with a change of governance two draft Long Term Plans and constant abuse from the public here are 25c worth of chocolate each. But sorry it will not happen next year because the whingers said that was spending too much. Sorry we also have to pay you below the private sector equivalent too.


@caveman

Posted on 22-03-2022 10:59 | By Informed

Do you know why companies have corp credit cards? Because the cost of claim backs cost a lot of money. Lets say you bought $100 of chocolate fish for your people on your own credit card. It would then cost another $100 to process the claim. That's a waste of money. Hense the use of corp cards. And if you are worried about justified spending, all credit card spend would have to be approved one over one and go through audit by Audit NZ. That ensures that the spend was appropriate.


Reasonable.

Posted on 22-03-2022 13:18 | By morepork

I think these expenses, in context, are reasonable, for people who have a weak moral compass. They need to ask themselves how their purchases benefit the citizens of their area; but they don't. If someone is earning over $250,000 pa can they not afford to pay for their own first class Koru club? The chocolate fish don't bother me, and most of the other self-indulgences, given that many people work many hours of unpaid overtime, can hardly be considered as "corruption". My concern is with the attitude of the people holding the cards. Do ANY of them see the card as a privilege, paid for by other people, or is it just a "perq" that you can "fill your boots" with. An old saying goes: "If you give a beggar a horse, he will ride it to death." Given the salaries involved, these people should change their "beggar" mentality.


Nonsense from Informed.

Posted on 24-03-2022 14:25 | By morepork

A single transaction for $100 for chocolate fish would NOT cost $100 to process. If transactions cost $100 each to process, all commerce would grind to a halt. The issue here is not that certain people should have corporate cards, or even what they should be allowed to spend on them. It is whether or not they see them as a privilege, or just a perq of the job.


Leave a Comment


You must be logged in to make a comment.