30 October 2010

It took $8 million in consultants fees to bury Rhodium at a crossroad

| johnboy
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The Rhodium debacle was a very Canberra tale.

A group of ACT public servants with delusions of competence convincing the Government to corporatise them and then offer salaries and perks suitable for the world class company they’d like to be. Only instead of using world class salary packages to lure world class personnel they hired themselves.

While they were indeed world class at indulging in lavish perks they failed miserably to grow the business to anything remotely capable of sustaining their level of entitlement.

After the bubble burst on the asset solutions company (mostly car leasing) it’s taken the ACT Government years to clear the brown stuff from the whirling blades.

Today the Canberra Times reports that MAXimus Solutions has trousered a further near $8 million to clean up the mess.

We can hope lessons have been learned from the sad and sorry business. But without much in the way of consequences the real lesson seems to be that the ACT taxpayer is a mug and easily taken for a ride.

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Another coup from the ‘GBE boys’ in ACT Treasury. Grunt. Fart. Guess. Hope. Deny.

Bugger! I would have done it for $4 million!

Rhodium was supposed to be wound up but it has been quietly “given” to a Western Australian salary packaging and fleet lease company whose principals have strong connections to the previous WA Labor Government.

Perhaps the solution to these ongoing problems will present itself at the next Election?

johnboy said :

and got the chief of staff sacked and the reporter barred from covering news.

BUT, they did use language beyond what was in the report.

Wow, really?

Everything I had heard in the past made me thing rhodium was a monumental cock up (starting with the name).

Everything I am hearing now makes me thing it was a monumental cock up with a large serving of inept corruption.

Be careful what you say about this. Stanhope threatened WIN TV’s reporter with defamation just for daring to read out loud (on the news) the findings from the ACT Auditor General about the whole shemozzle.

and got the chief of staff sacked and the reporter barred from covering news.

BUT, they did use language beyond what was in the report.

In all this stage managed finale – does anybody know the real total cost of this failed Labor scheme ?

I am confused about this.

Were the treasurer and chief minicter the only shareholders?

Was someone in Rhodium charged with a crime? What was the outcome of that?

Did not the CEO mis-use ratepayer funds to employ relatives, go to sporting events and generally snout the ratepayer.

Have they been charged or payed anything back?

More money extorted from rate payers by Jon and Katy for their toy politician “we run significant enterprises as an international trade jurisdiction”.

More intelligent use of rate payers money by Jon and Katy. What was the net profit (Laughtear) loss to the ratepayer?

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