By Cameron Weston
THE chairman of the Trust running two Hobsons Bay cemeteries says he has nothing to fear after Victoria’s Auditor General unearthed evidence of unsound management practices.
The Auditor General last week released a detailed report into the management of major Victorian cemeteries finding that, other than Fawkner Cemetery, Altona Memorial Park Trust had “the greatest number of governance issues”.
But Gary Lee, chairman of the Trust which operates Altona Memorial Park and Williamstown Public Cemetery, welcomed the findings, saying the Trust had conducted business appropriately, and it was other major cemeteries that were the source of problems in the industry.
“There are some examples of where people in the industry really haven’t covered themselves in glory,” he said.
“At the end of the day, those actions tend to reflect badly on the industry as a whole. But speaking for us, I’m quite happy to justify our actions.”
Minister for Health Bronwyn Pike said Altona Memorial Park Trust had been identified in the report as needing “immediate attention”, with eight other cemeteries.
Ms Pike indicated that more information would be sought from the Auditor General as to whether further action should be taken by the State Government to address issues raised in the report.
The Trust was now required to submit details to the Department of Human Services (DHS) within two weeks of the corrective action it plans to take.
Major among the issues raised in the report was the payment of “commissions totalling $19,495, to a consultant, to sell and market the crypts at the Williamstown Cemetery”, between October 2002 and December 2003.
Mr Lee defended the payments, saying the Trust ended the arrangement when instructed to do so.
“For a period of time, we entered into an arrangement with a funeral director to sell crypts because we thought it was a legitimate commercial arrangement.
“When we advised DHS of that arrangement, they didn’t like it, so we ceased it,” Mr Lee said.
“It wasn’t as though anyone was getting paid commissions.”
The report also found that Altona Memorial Park Trust used a “flawed tender process”, with inadequate documentation, and accepted late tenders.
It also called on the Trust to clarify a long-standing arrangement that has seen homes at the Altona and Williamstown cemeteries occupied rent-free, “with the cemetery paying for phone calls, rates and property expenses such as a new oven and plumbing costs”.
The Trust said that the “occupants of the residences at both cemeteries were employed as caretakers”, and it was therefore appropriate to cover these costs.
The full version of the report, Evaluation of the Financial Viability of Victoria’s Cemetery Trusts and the Development of Fee Models can be seen at www.dhs.vic.gov.au.
