Four months after lodging a petition to Bega Valley Shire Council with over 160 signatures seeking remedial action to the premier Eden Cove development, the matter was heard at councils June 12 meeting yesterday (see a full report in next week’s paper).
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As reported on our front page story of May 23, 2013, bond money held as a condition of consent of the Eden Cove development seemed to have gone AWOL back in 2005. Even persistent questioning by Deputy Mayor Russell Fitzpatrick drew a blank on the where, why and how the money had gone.
While researching that story, we naturally asked council about the apparently missing bond money. We were emailed a statement from a ‘spokesperson’ stating in part:
“Actions taken in 2006/2007 regarding ‘bonds’ and guarantees were addressed at the time.
The allegation of illegality is offensive to staff and Council, and should not be made unless evidence exists and thence reported to the appropriate authorities.”
While we had not suggested anything illegal had occurred, we were certainly interested in the money trail.
As council is quick to tell us, they have a sterling track record in financial management so it does seem strange to just lose track of $365,000.
Don’t despair though.
All is explained in this week’s council agenda papers.
Or is it?
Item 5.1: Response to Petition Eden Cove Estate states the following:
“Conditions of Consent and Release of Bonds
Throughout the course of the Eden Cove development, various bonds were lodged with Council. These bonds were generally presented to Council in lieu of construction. The original BAR/BAL intersection was bonded for an amount of $27,600. Prior to the release of the last stages, 4B and 5, Council received advice that the developer was seeking to bond the outstanding works. These works included a type CHR/AUL intersection ($250,000), upgrade of Government Road ($65,000) and drainage works within Stage 4B ($50,000). The cost associated with the construction of the intersection was verified prior to bonding deed paper work. The bonds were signed and dated by Council and sent to the developer for signing and execution. The bonds were returned and lodged with Council on or around 11 May 2005. Bonding Deeds and Bank Guarantees were in place at the time of the release of the relevant Subdivision Certificates.
Council’s engineering staff overseeing the Eden Cove development inadvertently instructed Council’s Finance Manager through an internal memo dated 6 December 2005 to refund the Bank Guarantees for the Bonds for Stages 4A, 4B and 5, interpreted to include the maintenance and construction bonds. This error was identified via a File Note dated 12 March 2008, stating that the construction bonds held by Council for the Eden Cove development had been mistakenly refunded. The construction bonded amounts included those mentioned above, were $365,000.
Council staff now has in place measures to prevent this from reoccurring.”
All clear now?
Hardly…
Who the money was returned to, who authorised the return of the money and why, are questions still unanswered. This is not about council staff doing as they were instructed to by those higher up. It’s about accountability and transparency by those with the delegations, a platform our current mayor campaigned hard on.
Amanda Stroud
Managing editor, Eden Magnet.