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Wollongong City Council has known of “difficulties” within the region's aerial patrol for about six months and has withheld its latest payment to the service, according to Lord Mayor Gordon Bradbery.
Wollongong was due to provide payments totaling $25,432 as a subsidy for the shark patrols for 2015/16, a spokesman said.
Council made the first payment in September.
However Cr Bradbery said the second half of the money - which was due in April - was not paid due to concerns over the recent resignation of the patrol's chief pilot and the "accusations that it was having some difficulties".
Despite these issues, Cr Bradbery said he believed the aerial patrol had "delivered on the expectations [of the council] up until recent times".
"The service that they offered was something that was very important for the safety and wellbeing of our swimmers," he said.
"We were one of the first to have anything like a shark patrol, and having this service coordinating with our lifeguards, this was a really significant contribution to the safety on our beaches in Wollongong."
Cr Bradbery said he did not know if there had been any assessment of how effective the aerial patrols had been, except to say that shark attacks had remained low.
He also noted the $25,000 contribution made up "a tiny fraction" of Wollongong council's $12 million aquatic services budget and $5 million lifeguard services budgets.
"This is relatively speaking, a small amount in the great scheme of things," he said.
He said the council would need to look at how it would patrol the beaches before the start of the next peak season.
Shellharbour council gave the aerial patrol $16,588 in 2015/16 and Kiama council provided its annual funding of $2500 in November 2015.

Asked in late March whether the council intended to renew its agreement, a Shellharbour spokeswoman said a meeting “was being sought with the operators of the aerial patrol about its future operations”.

Cr Bradbery said charities and community groups should exercise "good governance and transparency".
"I'm just disappointed that the trust of the community has been violated and let down," he said.

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The state’s consumer watchdog is investigating the region’s troubled aerial patrol but has so far resisted calls to appoint an administrator.



Patrol insiders contacted the department in December, alleging funds intended for the region’s charitable shark-spotting service had been misappropriated.


The group – treasurer John Weston, vice-president Mike Galliano and board adviser Graham Pike – provided a forensic accountant’s report in a bid to prove wrongdoing, and asked that an administrator be appointed.



Mr Pike claims the board was “completely blindsided” by patrol president and general manager, Harry Mitchell.


“Fair Trading has a legal obligation to clean up organisations like AAP, and certainly to protect donors’ money,” Mr Pike said.


“An administrator can help us sort out some of the administrative and financial problems.”


Mr Mitchell denies the claims against him. He told the Mercury the patrol’s finances were the responsibility of its treasurer.



“In any organisation the treasurer has responsibility to ensure those processes are adhered to and followed through – anything to do with financial records and activities and statements of accounts.”


A NSW Fair Trading spokeswoman confirmed the department had reviewed allegations of “internal governance issues, misappropriation of funds and pecuniary gain by Mr Harry Mitchell”.


“However the [forensic accounting] report very clearly states that the documentation on which the forensic report is based is incomplete”.
“Fair Trading requested various documentation from the association and its auditor to determine whether there is any evidence of breaches of the Act.”



“Fair Trading’s detailed review indicated significant internal governance and control issues, including an apparent lack of review of the association’s affairs by the previous committees.


“Fair Trading does not have the authority to deal with matters of internal governance which are largely governed by the association’s constitution. The Committee collectively is responsible for the ... internal governance of the association’s affairs.”



“This includes the employment of staff and contracts entered into as well as contractual performance issues.


“Fair Trading is continuing to make inquiries about the association’s compliance with the Associations Incorporation Act 2009 in order to determine whether any enforcement action is required. However based on the documentation currently available, Fair Trading cannot be satisfied that grounds exist for it to appoint an administrator.”

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