Yet more troubles at the BSC

The trouble with union scum is that they’re usually so deep in the trough that they tend to forget the members they’re supposedly there to represent.


The BSC cartel is no exception. El Presidente Patrick Lee-Lo pumped out a lightweight newsletter to members in January.

BSC members were told that “the accounting change was recommended to the BSC by its auditors – Markhams – some years ago to save us about $2k per annum”.

What El Presidente failed to mention to the members (despite them each ponying up $20k a year in membership fees) was that the BSC was failing to fulfil its own Society audit requirements, resulting in the Registrar of Incorporated Societies launching an investigation into the BSC. 


Yes Patrick Lee-Lo there is something “fishy” going on, especially when you tell the Registrar that “the accountants of the society have said that they are unable to retrospectively audit the 2010 and 2011 Financial Statements”.

Looks like the BSC, the SFWU, and the Property Council’s little union scam and hold over government procurement contracts is coming to an end


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  • LionKing

    NFWAB Paddy. The pain keeps on coming. The only honest thing you could do is fall on your sword and resign. Taking on the Govt with your Labour/union mates’ rort is nothing but extortion. The world has moved on from that type of bully boy stand over tactics, and so should you.

  • BJ

    Quite the cartel.

  • DLM

    As a member of a few associations, if the CEO failed to tell members about the fact that the association was under investigation for failing to undertake even the most basic rules of the Society there would be hell to pay.

    So far we’ve seen WO expose this clown donkey deep in cahoots with the SFWU; the BSC’s unexplained $1.8m and growing cash pile (Labour political donation slush fund?); Extravagant junkets overseas with little benefit (aside from those who went) for members; an investigation by the Registrar of Incorporated Societies into breaches of the Society’s own rules; BSC auditors unable to undertake audits of the BSC Financial Statements; the CEO taking on NZ’s leading blogger WO and Rodney Hide = the BSC can only be described as a complete shambles.

    Thankfully it looks like the Govt has thankfully changed the rules around its procurement so that this little cartel really offers little value to anyone.

  • Time For Accountability

    The confidence the public can expect to rely on from NZICA members just gets worse and worse.

    No wonder the CEO resigned in December.

    No wonder NZICA is seeking to amalgamate with Australia. These moves are often done in circumstances where it is desired to draw a line above a pile of rubbish, disband so there is no more legal status for anyone to pursue.

    NZICA have obligations within the act under which they exist.

    The failure of auditors in these Union matters is too widespread to be isolated instances.

    It is time for the Director of Quality assurance for NZICA to explain why the auditors do not appear to have the required fundamental knowledge to comply with the Accounting Standards and additionally why the Practice Review process he is in charge off is not picking up these widespread defaults.

    It happened when the LMVDA was taken over by MTA. If anyone wants a challenge. Determine what happened to the LMVDA fidelity fund on that takeover.

    • Sarrs

      If you wish to make a complaint about an NZICA member, here is how to go about it:

      Bear in mind that an accountant or auditor can only work with the information provided. If there is no information to audit, then an audit cannot be performed. It is not within the remit of an accountant to decide on the scope of the engagement – there are strict rules about that. Anyone can make a complaint about a member so please be my guest. All members found guilty of serious misconduct have their names published on the NZICA website

      NZICA is also not amalgamating with our Australian counterparts. You’re quite poorly informed and that kind of nonsense is bad for any industry. NZ and Australia have aligned their educational and work experience requirements so that it is possible to have your entire qualification recognised in Austrlian and vice versa You’re terrible information is distracting from the real issue here that is the BSC.

    • blokeintakapuna

      sounds like this would be a great journalist piece for the Truth to investigate and pour on some brilliant, disinfecting sunshine…

      I wonder if the Auditor General thinks of the NZICA and these issues?

      Great work again TFA…

      • Time For Accountability

        Don’t ask.

        The Govt Audit office was responsible for auditing the ODHB balance sheet over the period of the $16.7m fraud the did not properly check the supporting contracts for one of the larger items of prepayments. It was incometence at the highest level.

        Surprise surprise the are NZICA members.

        And further surprise that NZICA refused point blank to investigate the matters surrounding the ODHB fraud that may involve perjury and insurance fraud.

        Who refused – the CEO that resigned shortly after this was raised and the so called director of quality assurance.

        So don’t hold your breath for the expertise and integrity you expect from the Gov’t audit office to be practiced.

        NZICA do practice reviews on Chartered Accountants holding a Public Practice certifciate who perform audits in a process we have seen has failed. They also educate the auditors.

        The question arises – do they conduct reviews on the members who work for the Audit office? or do they allow these folk to conduct audits at a high level without any review process.

        Hmm – Interesting question.

  • Time For Accountability

    Patrick – you have still not filed the 2007 Financial Statements. Is there something to hide? It takes about 10 Minutes to post them online.

  • Time For Accountability

    This whole audit and review debate raises the question. Did Markhams have a hand in preparing the accounts even when they are audited? If so were they conflicted enough to actually prevent them doing all the audits and reviews?

  • Fred

    This cartel is a circus and Paddy Plumbly Lee-Lo is merely a clown in a show. This rort has been going on far longer that he has been El Presidente. Other culpable names a Brian Young and Bent Bob King who stil sits behind the scenes and pulls Paddys strings to this day. Bent Bob was involved in plenty of related party transcations with the BSC that were never disclsed to the members. Poor old Paddy doesnt realise he is the fall guy for BB.
    Saying that Paddy reckons he is getting picked on because of his family connections! ok Paddy we and the members of the BSC are in the dark on what you refer to, so maybe you should elaborate further on this statement. What are your family connections?
    Also readers lets not forget, the $1.8m in cash is largely made up of tax payer funds they received for the supposed management of the now failed BSCITO, hmmmmm

  • Guest2

    I havent read the January press release but I am sure the Auditors would not of recommended the changes because the constitution said they must be audited. Therefore which is right?

    • Time For Accountability

      Guest2 – I too struggle with the fact the previous auditors would have recommended a review rather than an audit. Except for the fact they did in fact do a review rather than an audit.

      I would have thought that a firm of Markham’s good standing would have either done an audit or nothing. It is the fact they did the review i find puzzling.

      There is no problem asking another auditor to conduct a full audit.

      But there would be a problem if the audit discovered discrepancies.

      An auditor is obliged to approach the task with independence and a degree of skepticism. By conducting a review

    • Callum

      We have recommended to move to a review rather than an audit for a few clients, we always point out where a constitutional change would be required to do that though. Many organisations are only audited as there constitution has been worded that way and may not have any other legal requirements forcing them to be audited. For smaller organisations there is often little value in the cost of an audit.

  • blokeintakapuna

    Various NZ Unions… years of financial discrepancies in annual accounts… funding Labour Party who have demonstrated on numerous occasions, on-going corruption by numerous MP’s…

    Aussie Unions… years of financial discrepancies in annual accounts… funding Labour Party who have demonstrated on numerous occasions, on-going corruption by numerous MP’s…

    Just have a look at today’s for all the alleged, multi-million dollar corruption going on with Labor MP’s over there

    Birds of a feather…
    smoke… fire…

    What will it take for the authorities/ SFO/AG/PM/GG to launch an independent Enquiry into all the deliberately misleading and financial reporting and the missing millions between the various NZ unions and the Labour Party?