I need to correct the 3 October 2018 online record of your report (“Ombudsman finds failings within Goulburn Murray Water corporate governance”) regarding my recent departure as Managing Director of Goulburn-Murray Water. Sadly, much of the commentary in your report was clearly biased, sensationalist and ignored the facts.
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First it would have been much fairer to provide some perspective: GMW is Australia’s largest rural water corporation and largest irrigation network. It has 21,000 customers and approximately 800 staff. When I was asked to take over the helm it was plain to all parties that the corporation was facing a massive fight for its survival. There have now been five different chairs and seven managing directors since 2012. While Management is repeatedly held up for ridicule – the system driving this remains unquestioned.
The great priority for me when first appointed was to confront head on and without delay the serious financial challenges facing GMW. Throughout this whole process there has not been any suggestion that I did not approach this considerable task with anything but great diligence.
At the time of my appointment I resided in Melbourne with my family. The manner in which the $20,000 in relocation expenses were subsequently managed was not proposed by me nor was it ever my preference. I was entitled under my contract to spend it on establishment of my northern Victorian residence including its fitout. The GMW determined payment details to save the Corporation and its customers some $70,000 over five years. I accepted this approach because in the private sector where I’m widely experienced – salary sacrifice strategies which meet tax office guidelines – are accepted practice and commonplace and so a living away from home allowance together with relocation meant I had a fair arrangement covering my costs to establish in the region. I note these arrangements also exist in the water industry.
Read more: Diane James announced as chairwoman of GMW
However, the Ombudsman and so the Minister subsequently deemed this was not appropriate for a statutory authority despite that other corporations offer these arrangements and decided that I should pay the price.
Executing the stabilization plan for GMW meantime required liaising with an enormous number of stakeholders, customers, management and staff. Hosting gatherings both formal and informal was very demanding - though invaluable in facilitating discussion, forging solutions and maintaining morale in a time of great change. In stark contrast to your published perception – this was accomplished at very modest expense with lunches and breakfast barely $10 per head and dinners $60 per head.
All expense claims were work related, in accordance with my contract, and therefore rightly approved by the GMW with proper tax receipts for all claims provided. In accordance with recent MD practice, I claimed alcohol for some occasions such as board dinners, the occasional staff function or Managing Director dinners – this would total two to two standard drinks per head. Hardly the salacious “bountiful booze” (reported by some) gleefully and sensationally reported. The report also omitted that when in Melbourne I usually stayed at my private residence at no cost to GMW despite an option for me to claim from mid 2017. This saved GMW in the period of my tenure of the order of $10,000.
Pat Lennon, Former Managing Director, GMW
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