The Rann Government was paying former Adelaide 36ers boss Mal Hemmerling about $1000 per day for a job even though there was no valid current contract for his job.
Evidence to the Legislative Council Budget and Finance Committee by Ian Nightingale, CEO of the Department for Planning and Local Government, confirmed that Mr Hemmerling had been appointed to the position of Director for the Northern Suburbs in the department.
“Mr Nightingale said Mr Hemmerling’s last contract with the Government expired on 25 August 2009, but that he was still working about two or three days per week in his new part-time job,” Shadow Minister for Finance Rob Lucas said today.
“However, the evidence from Mr Nightingale and Mr John Hanlon, deputy CEO, was that they were still negotiating the terms of Mr Hemmerling’s contract and he was currently working without a contract.
Mr J Hanlon: “[Mr Hemmerling] will not be an employee. His arrangements finished with the Attorney-General’s Department on 25 August. We are currently negotiating a contractual arrangement with him which initially will be for a six-month contract to undertake those responsibilities for the Office of the North.
Hon R Lucas: “He is going to be the director of the northern suburbs two days a week, is he?
Mr J Hanlon: “No. We’re negotiating a contractual arrangement with him now…We are deep in discussion over his contract at the moment.”
(Hansard, Budget and Finance Committee, 14-Sept-09)
“This evidence also made it clear that Minister Jennifer Rankine’s Ministerial Office had suggested Mr Hemmerling’s appointment and that there had been no applications advertised for the position.”
In other evidence to the Committee, it was confirmed that:
• Former Auditor General Ken Macpherson was being paid $1200 per day for his investigation into the Burnside Council and the total budgeted cost for the inquiry, including other staff, was $250,000;
• KPMG were paid $1.4 million in total for their consultancy on the 30 year Greater Plan for Adelaide and that the total budget for the development of the Plan was $7.9 million;
• Mr Nightingale had approached Lois Boswell, former Chief of Staff to Minister Gail Gago, and George Vanco, former Ministerial Adviser to Minister Paul Holloway, to take senior Director level positions in the department on packages between $140,000 and $180,000;
• Budget savings for the department this year were $474,000 and increased to about $1.4 million per year by the end of the forward estimates period.
“Mr Hemmerling is being massively overpaid by the Rann Labor Government for what is essentially a middle level manager’s position in the department,” Mr Lucas said.
“This is especially so when the equivalent position of Director of the Southern Suburbs Office is being paid at a much lower level.
“The Rann Labor Government must explain why, having abolished the Office of the Northern Suburbs four years ago, it is now re-establishing the same office and appointing Mr Hemmerling to this position.
“At a time when services to South Australian families are being cut across the board, the Rann Labor Government is wasting taxpayers’ money by paying Mr Hemmerling at a rate equivalent to a CEO of a department, rather than the rate usually applied for a middle level management position.”