	{"id":68715,"date":"2020-05-14T17:55:46","date_gmt":"2020-05-14T06:55:46","guid":{"rendered":"https:\/\/timesnewsgroup.com.au\/goldenplains\/?p=68715"},"modified":"2020-05-18T17:02:24","modified_gmt":"2020-05-18T06:02:24","slug":"what-terry-demeo-did-the-things-that-could-bring-down-a-director","status":"publish","type":"post","link":"https:\/\/timesnewsgroup.com.au\/goldenplains\/news\/what-terry-demeo-did-the-things-that-could-bring-down-a-director\/","title":{"rendered":"What Terry Demeo did: The things that brought down a director"},"content":{"rendered":"<p>The <a href=\"https:\/\/timesnewsgroup.com.au\/ballarat\/news\/city-ceo-director-infrastructure-and-environment-stood-down-over-ombudsmans-report\/\">report by the State Ombudsman<\/a> is highly critical of the City of Ballarat&#8217;s former director of infrastructure and environment Terry Demeo, especially in relation to hiring practices, tender process, and the use of a municipal credit card.<\/p>\n<p>In Ombudsman Deborah Glass\u2019 report it\u2019s alleged Mr Demeo \u201cwas improperly involved in recruiting three friends and former colleagues to positions at council.\u201d<\/p>\n<p>In each case Mr Demeo made no conflict of interest declaration.<\/p>\n<p>In one case a contractor, known as Officer A in the report, was brought into manage the City\u2019s 2015 green waste bin roll out. Officer A had significant prior involvement with Mr Demeo from their time together the City of Greater Geelong council.<\/p>\n<p>The Ombudsman found \u201cno evidence Mr Demeo sought other quotes for the work. At interview, he said a recruitment agency would have charged an additional $50,000 to $100,000 for the project. But he did not recall contacting any agencies for an estimate. He said he \u2018didn\u2019t have time\u2019 for that course of action.\u201d<\/p>\n<p>During the investigation, Officer A told the Ombudsman \u201che and Mr Demeo were \u2018sort of friends\u2019 at Geelong Council, and they \u2018didn\u2019t stop being friends\u2019 when they worked together at Ballarat council.\u201d<\/p>\n<p>Subsequently Mr Demeo told the Ombudsman that his relationship with Officer A \u201cis demonstrably a professional colleague relationship with friendship which is normally\/reasonably associated with work colleagues\u201d.<\/p>\n<p>When spending for the green bin roll out went over the budgeted amount, the City\u2019s procurement officer advised Mr Demeo that the remainder of the work would need to go to tender.<\/p>\n<p>Subsequently, 16 tenders for the work were received, nine accepted, one of which was for the previously engaged Officer A\u2019s company.<\/p>\n<p>At first Mr Demeo told investigators he was not involved in the selection of the successful tenders, however during inquiry the Ombudsman presented evidence to the contrary.<\/p>\n<p>Ms Glass found that Mr Demeo has taken part in the tender panel, something one council officer described as \u201cvery rarely\u201d happening.<\/p>\n<p>&#8220;Very rarely would a director sit on a panel. It would have to be a major project for a director to sit on a panel \u2026 We\u2019re not paying him a small fortune to sit on tender panels,\u201d the city\u2019s procurement officer told the Ombudsman.<\/p>\n<p>Officer A\u2019s company was subsequently designated an approved supplier and undertook further work for the City of Ballarat until 2018.<\/p>\n<p>In total the contractor was paid over $385,000 for his work for the City of Ballarat.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>The 80-year-old site supervisor<\/strong><\/p>\n<figure id=\"attachment_68729\" aria-describedby=\"caption-attachment-68729\" style=\"width: 300px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-68729\" src=\"https:\/\/timesnewsgroup.com.au\/goldenplains\/wp-content\/uploads\/sites\/23\/2020\/05\/IMG_8691-300x200.jpg\" alt=\"\" width=\"300\" height=\"200\" \/><figcaption id=\"caption-attachment-68729\" class=\"wp-caption-text\">The Ballarat West Link Road project was overseen by a site supervisor who the Ombudsman found was linked to Mr Demeo from his time at the City of Greater Geelong.<\/figcaption><\/figure>\n<p>The second hiring case relates to the recruitment of a site supervisor that Mr Demeo had worked with during his time at the City of Greater Geelong.<\/p>\n<p>In July 2016 it\u2019s alleged that Mr Demeo hired the former colleague on a $160,000, 18-month fixed term contact to work on the Ballarat West Link Road Project.<\/p>\n<p>A former council employee who reported directly to Mr Demeo told the Ombudsman the infrastructure and environment director has identified someone for the job \u201cleast three to six months prior to the role being advertised.\u201d<\/p>\n<p>Mr Demeo then chaired the selection panel of two despite council policy being that three people should be on any hiring panel.<\/p>\n<p>The Ombudsman found further issues with the employment of the person report describes as Officer B.<\/p>\n<p>On the panel the report states, \u201cCouncil\u2019s selection documentation named council\u2019s former HR coordinator as the third member of the panel. However, her name was crossed out and \u2018not available\u2019 was written in Mr Demeo\u2019s handwriting.\u201d<\/p>\n<p>While he had not formally declared a conflict of interest, Mr Demeo told investigators, &#8220;All of the leadership team including the current CEO and [the Director Business Services] knew from an early stage that [Officer B] and I had worked together before.&#8221;<\/p>\n<p>Another issue the Ombudsman found with the appointment of Officer B related to medical fitness.<\/p>\n<p>The role was described as physical demanding, with Mr Demeo telling investigators, \u201cThe site supervisor needed to work 10-12 hour days, six or seven days a week\u2026 site supervisor spent a significant amount of time in a vehicle, which involved getting in and out and inspecting and supervising works.\u201d<\/p>\n<p>Officer B was just under 80 years old when interviewed for the job.<\/p>\n<p>&#8220;When we did the interview in the city council offices on the first floor, he had to take the lift up to come to the interview &#8230; He had some physical reason preventing him from walking up the stairs,\u201d said the second panel member who also interviewed Officer B.<\/p>\n<p>A subsequent medical check, \u201c[I]ndicated a number of health issues relevant to the performance of the role\u201d, and a former municipal HR officer told investigators there were, \u201cconcerns that we couldn\u2019t perhaps provide [Officer B] with a safe work environment.<\/p>\n<p>\u201cTerry was adamant that this was the man for the role and that he needed him in the role because there\u2019s nobody else who could do this role.\u201d<\/p>\n<p>Officer B was subsequently hired and then had his contract extended beyond the initial December 2017 engagement until September 2019.<\/p>\n<p>The Ombudsman found that the extension of Officer B\u2019s contract was \u201cunusual\u201d for two reasons.<\/p>\n<p>First, Officer B\u2019s salary package allowance was increased by $30,000 to $40,000 because he began using his own car. Mr Demeo told investigators he was not aware of the increase.<\/p>\n<p>Secondly, Officer B had been working from a site hut after the project was completed and then from a location near the old sale yards due to what Mr Demeo told investigators related to issues with the Link Road and then to prevent theft from the old sale yards.<\/p>\n<p>However, Mr Demeo later conceded it also had to do with issues relating to \u201cOfficer B\u2019s preference to work alone and not come into council offices.\u201d<\/p>\n<p>Officer B resigned in June 2019, mid-way through a project. Investigators described it as for \u201cissues regarding a poor outcome of a road construction and a failure to follow and document the appropriate procurement process.\u201d<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Changed requirements<\/strong><\/p>\n<p>The third allegation of improper hiring relates to a recently graduated council employee in the City\u2019s statutory planning team, known in the report as Officer C.<\/p>\n<p>Officer C submitted to the Ombudsman there was a connection between her family and Mr Demeo, \u201clived in the same town and her father knew Mr Demeo through work and a local sports club.\u201d<\/p>\n<p>At first Officer C worked under Mr Demeo as a work experience student in the planning team at the City of Greater Geelong, undertaking two placements in 2007 and 2008.<\/p>\n<p>Mr Demeo submitted to investigators that \u201cOfficer C\u2019s father was no more than \u2018an acquaintance\u2019 and he could not remember Officer C working at Geelong council.\u201d<\/p>\n<p>However, he later admitted he remembered Officer C.<\/p>\n<p>Officer C said that in 2014, after graduating she reached out to Mr Demeo regarding an advertised role at council.<\/p>\n<p>&#8220;I just always remember that one time of work placement, him just being so incredibly nice and he has a really good reputation in the planning industry so when I knew he\u2019d ended up at Ballarat I reached out to find out why, how he enjoyed it, and what he thought the culture was like,\u201d Officer C told investigators.<\/p>\n<p>Officer C subsequently got the job, although the Ombudsman\u2019s report found that Mr Demeo was not involved with the recruitment.<\/p>\n<p>Officer C, who continued to live in Geelong stayed twice with Mr Demeo\u2019s relatives when council meetings ran late, as well as at other locations in Ballarat.<\/p>\n<p>In 2015, when Officer C went for a promotion directly under Mr Demeo in a manager role dealing with laws and parking enforcement, the recruitment process had to be run twice.<\/p>\n<p>The first time Mr Demeo chaired the selection panel of three, which also included a former HR coordinator and a manager who directly reported to Mr Demeo.<\/p>\n<p>Officer C told investigators that after the interview Mr Demeo told her she was the preferred candidate, but walked back the statement the next day after the former HR coordinator flagged issues with Officer C\u2019s suitability for the role, telling investigators \u201c[I] felt that this was not okay and I know [the other panel member] is friends with Terry as well and he\u2019s from Geelong. I felt a little bit they\u2019d already made their mind up.\u201d<\/p>\n<p>Afterwards the former HR coordinator raised the issue with the HR manager, who subsequently reviewed the files, later speaking with Mr Demeo, who reiterated that Officer C was the right choice.<\/p>\n<p>The role was then readvertised in November 2015 with a changed position description that was better suited to Officer C\u2019s skills and experience.<\/p>\n<p>Once again Mr Demeo chaired the selection panel and once again, Officer C was chosen as the preferred candidate and appointed to the role in December 2015.<\/p>\n<p>Then, in 2016 when CEO Justine Linley sought to reduce the number of manager roles from three, to one, including Officer C\u2019s position.<\/p>\n<p>The Ombudsman\u2019s report states that Mr Demeo sought to make Officer C the executive manager without a recruitment process, saying to the CEO in an email, \u201cJustine, yes I have spoken to all but two of my managers &#8230; Proposal is for \u2026 [Officer C] to head up regulatory services as executive manager.\u201d<\/p>\n<p>However, Mr Demeo backtracked, instead choosing to appoint Officer C to an acting role and then holding an internal recruitment process, to which Officer C was the only, and subsequently successful, applicant.<\/p>\n<p>Mr Demeo again chaired the selection panel.<\/p>\n<p>Ultimately the Ombudsman found that in all three cases, Mr Demeo, \u201cacted improperly in connection with the recruitment of his friends and former colleagues\u201d and should have declared a conflict of interest.<\/p>\n<p>In his response to a draft of the Ombudsman\u2019s report, Mr Demeo rejected any wrong doing in the recruitment of all three staff members but acknowledged a perception of conflict of interest.<\/p>\n<p>\u201cI deny that I had any improper involvement of the recruitment of [Officer B], [Officer A] and [Officer C],\u201d he said. \u201cI reject that my association with them at the time of the appointments could be fairly characterised as friendship. We were not friends. In the case of [Officer B] and [Officer A], I had worked with them before.<\/p>\n<p>\u201cIn the case of [Officer C], I was aware of her but not friends with her. I do accept that there was a deficiency in the composition of the panel for [Officer B]\u2019s appointment. I take responsibility for that deficiency.<\/p>\n<p>\u201cI also accept that there was the potential for perception of conflict and that I should have completed a formal statement or declaration but I do not accept that I was wrong to play the parts that I did in their respective recruitments.\u201d<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Splitting the bill<\/strong><\/p>\n<figure id=\"attachment_68731\" aria-describedby=\"caption-attachment-68731\" style=\"width: 200px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-68731\" src=\"https:\/\/timesnewsgroup.com.au\/goldenplains\/wp-content\/uploads\/sites\/23\/2020\/05\/IMG_8686-200x300.jpg\" alt=\"\" width=\"200\" height=\"300\" \/><figcaption id=\"caption-attachment-68731\" class=\"wp-caption-text\">While Mr Demeo didn\u2019t suggest splitting costs of work at City Oval to avoid tenders, the Ombudsman found he was ultimately responsible for the action.<\/figcaption><\/figure>\n<p>Further allegations, while not directly involving decisions by Mr Demeo relate to splitting purchase orders for works done at City Oval, a child care centre and at the Creswick Road carpark.<\/p>\n<p>At City Oval the municipality funded works at the site in 2017 to the tune of $1.6 million however the upgrades didn\u2019t deal with all issues to do with drainage and damage caused by the previous works.<\/p>\n<p>That meant when contractors left the site Mr Demeo\u2019s team came into address remaining issues including resurfacing works in front of the Mair Street grandstand, replacing drainage, fixing the parking and addressing a gap between the fence of the oval and the pavement.<\/p>\n<p>All up the works were set to cost between $250,000 and $300,000, however the <em>Local Government Act<\/em> says that anything over $200,000 must go out for tender, while council policy sets the threshold at $125,000.<\/p>\n<p>A team leader at council submitted to investigators that such a tender process would have taken three months because of advertising and sign-off requirements.<\/p>\n<p>Two weeks later, in discussions about the works with Mr Demeo, the team leader suggested using preferred suppliers to complete the work.<\/p>\n<p>&#8220;As long as we didn\u2019t pay one contractor on this job more than the $125,000 threshold, we weren\u2019t breaking any of the rules \u2026 We can have ten contractors on this job \u2026 Once I\u2019d done the estimate, I knew then that not one of the contractors, and they\u2019re all preferred suppliers, \u2026 not one of them was going to get $125,000, not one. Because the work wasn\u2019t there,\u201d the team leader told investigators.<\/p>\n<p>The Ombudsman\u2019s repot says that the City of Ballarat\u2019s director of business services Glenn Kallio and director of community development Neville Ivey both questioned the team leader about the cost and using preferred suppliers.<\/p>\n<p>Mr Kallio told investigators, \u201cHe [the team leader] would have told us to go to tender if it had been needed. If any of those suppliers had been in excess of the thresholds we would have gone to tender \u2026 If [he] had said we needed to go to tender, we would have gone to tender.\u201d<\/p>\n<p>Mr Kallio also noted the urgency of the works.<\/p>\n<p>\u201c[W]e didn\u2019t have the time [for a tender]. Plus, it would have been multiple little tenders because it wasn\u2019t one job. [The team leader] project-managed all these little jobs. If we\u2019d gone to tender, we would have tendered separately for the bitumen, drainage and landscaping,\u201d he told investigators.<\/p>\n<p>In a separate case in April 2018 an invoice for $58,000 was split on a job for a child care centre, despite being well below the threshold for either a State or City of Ballarat mandated tender process.<\/p>\n<p>Lastly the Creswick Road carpark works drew the ire of the Ombudsman, mainly because they ended up costing $714,000.<\/p>\n<p>Mr Demeo submitted that originally the project was meant to cost less than $200,000, however subsequent costs spiralled as the scope of the work grew.<\/p>\n<p>Ultimately while splitting the cost of the works at City Oval seemed to be the idea of the team leader involved, the Ombudsman laid the blame at the feet of Mr Demeo, saying the decision to get around the tender process, \u201c[P]otentially undermines the purpose of procurement controls in the section 186 of the <em>Local Government Act<\/em> and the spirit of council\u2019s procurement policy.<\/p>\n<p>\u201cIt is also questionable whether such an interpretation, apparently for the sake of completing projects quickly, complies with council officers\u2019 obligations in the council\u2019s code of conduct.\u201d<\/p>\n<p>The Ombudsman made no finding about the Creswick Road carpark.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>On the cards<\/strong><\/p>\n<p>The final series of allegations levelled at Mr Demeo relate to his use of a municipal credit card.<\/p>\n<p>During the investigation it was found that Mr Demeo had used his card to pay for $360 worth of good-bye drinks for a staff member in 29 July, 2016, as well as $7000 for coffees meals and beverages during meetings since his appointment as a director in 2016 and October 2018.<\/p>\n<p>Notably the report also found that he\u2019d spent $950 on a Flemish Light Chandelier for a meeting room on the first floor of town hall.<\/p>\n<p>Mr Demeo told investigators, \u201cHaving arrived at the site to pick it up, I \u2026 was not aware that it was not paid for. So the only mechanism that I had available to me at that time was to pay for it on the credit card, so I used that.\u201d<\/p>\n<p>Mr Kallio told the investigation, that while some of Mr Demeo\u2019s purchases on the council credit card, \u201cwere not appropriate and should have been purchased\u201d, Mr Kallio also noted that, \u201c[I]t was likely Mr Demeo bought them because the [then] mayor [Samantha McIntosh] wanted them for the town hall.\u201d<\/p>\n<p>In the end the Ombudsman found that while Mr Demeo\u2019s use of the card amounted to purchases appearing to be \u201c[I]nappropriate and not in accordance with council\u2019s corporate purchasing card policy.<\/p>\n<p>\u201cHowever, while the purchases may evidence poor judgement on Mr Demeo\u2019s part, they do not appear to constitute \u2018improper conduct\u2019 for the purposes of the <em>Protected Disclosure Act<\/em>.<\/p>\n<p>\u201cMr Demeo\u2019s purchase of items for the town hall refurbishment, including a chandelier costing nearly $1000, does not appear to have been prohibited under council policy. It was nonetheless unusual for Mr Demeo, a council director, to be personally involved in this purchase.\u201d<\/p>\n<p>Mr Demeo\u2019s formal response, if any was provided, to the allegations of improper use of the council credit card was not published in the Ombudsman\u2019s report.<\/p>\n<p>Mr Demeo was contacted and asked to respond to the allegations outlined in the report, he declined to make comment.<\/p>\n<p>Read the full ombudsman&#8217;s report <a href=\"https:\/\/www.ombudsman.vic.gov.au\/our-impact\/investigation-reports\/alleged-improper-conduct-by-executive-officers-at-ballarat-city-council\/\"><strong>here<\/strong><\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The report by the State Ombudsman is highly critical of the City of Ballarat&#8217;s former director of infrastructure and environment Terry Demeo, especially in relation to hiring practices, tender process, and the use of a municipal credit card. In Ombudsman Deborah Glass\u2019 report it\u2019s alleged Mr Demeo \u201cwas improperly involved in recruiting three friends and [&#8230;]<\/p>\n<p><a class=\"btn btn-secondary understrap-read-more-link\" href=\"https:\/\/timesnewsgroup.com.au\/goldenplains\/news\/what-terry-demeo-did-the-things-that-could-bring-down-a-director\/\">Read More&#8230;<\/a><\/p>\n","protected":false},"author":141,"featured_media":68716,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[7],"tags":[],"post_folder":[],"class_list":["post-68715","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What Terry Demeo did: The things that brought down a director - Golden Plains Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/timesnewsgroup.com.au\/goldenplains\/news\/what-terry-demeo-did-the-things-that-could-bring-down-a-director\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Terry Demeo did: The things that brought down a director - Golden Plains Times\" \/>\n<meta property=\"og:description\" content=\"The report by the State Ombudsman is highly critical of the City of Ballarat&#8217;s former director of infrastructure and environment Terry Demeo, especially in relation to hiring practices, tender process, and the use of a municipal credit card. 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