Chapel Street traders 'pay for marketing executive Oskar Cebergs' porn access'

July 18 2016

Cameron Houston and Chris Vedelago

Marketing executive Oskar Cebergs was employed by the Chapel Street Precinct Association to promote the embattled retail strip, but a toxic legal dispute over his departure has exposed serious probity issues with the association and Stonnington Council.

Mr Cebergs' role as executive officer was suspended by the association in April following allegations of "serious misconduct in the course of his employment", according to a defence statement filed with the County Court.

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Chapel Street court battle

Former Chapel Street Precinct Association marketing executive Oskar Cebergs is in a bitter legal feud over alleged 'serious misconduct'.

The association has accused Mr Cebergs of making almost 100 unauthorised debit card withdrawals totalling $11,033 since February 2015, including cash advances, payment of parking fines and purchases at Coles, Ticketek and Dan Murphy's.

It also alleges that Mr Cebergs spent almost $1000 on unauthorised Uber travel and almost $400 on "unauthorised expenses in respect of a subscription to a pornographic internet service called HornyHub".

Oskar Cebergs is accused of attempting to conceal unauthorised spending. Photo: Scott McNaughton

There were also alleged excessive mobile phone data and international call charges of almost $1000 from October 2014 to February 2016.

According to the defence statement, Mr Cebergs destroyed business records, including debit card statements, in an apparent bid to conceal his unauthorised spending.

But in the original statement of claim against the Chapel Street association, Mr Cebergs said his employment contract was breached. He demanded to be compensated for losses and damages of more than $160,000.

Mr Cebergs claimed his contract included a base salary of $95,000, a 15 per cent commission on all additional funding he secured and the payment of all mobile phone expenses including personal use.

Chapel Street traders are grappling with a gloomy retail climate

The allegations raise concerns about the management and oversight of the association, which receives an annual budget of more than $800,000 from about 1800 retailers and businesses.

The bitter legal feud is also expected to embroil the City of Stonnington, which collects a compulsory fee from Chapel Street traders and receives quarterly reports from the association which are independently audited.

In 2013, Stonnington council chief executive Warren Roberts said probity and governance measures would be improved following the arrest of council employee Shaun Rohan Dike, 50, who was charged with more than 900 criminal offences.

Dike was sentenced to almost four years in prison after pleading guilty to dishonestly obtaining $624,113 worth of alcohol from suppliers on behalf of the council.

The latest allegations of mismanagement are expected to anger some Chapel Street traders, who resent paying the mandatory levy and are grappling with a gloomy retail climate.

Alison Baker, owner of Alison's Handmade Bread in Prahran, accused the precinct association of poor governance, inaccurate reporting and financial incompetence, after it returned a loss of $116,973 for the 2015 financial year.

Ms Baker had raised concerns, including about the performance of Mr Cebergs, with Stonnington council in April last year but no action was taken.

"The financials for the 2012-2013 year appear to be in disarray," she said. "Stonnington council didn't have a record of the year-end figures for 2013 when I asked them in late 2015. Surprising, given they compulsorily collect the funds and disburse them, yet they have no record."

"These are serious allegations against Mr Cebergs, and are obviously a matter for police," she said.

Chapel Street Precinct Association president John Lotton refused to confirm if police had been contacted.

"Given the matter is subject to legal proceedings, and out of respect to Mr Cebergs' privacy and the need to protect his rights, there are limitations on what we can say to the media.

"What we can say is that Mr Cebergs' contract has come to an end and we see his departure as an opportunity for a fresh start," Mr Lotton said.

Mr Cebergs declined to comment when contacted by Fairfax Media.

Stonnington council and Mr Roberts also refused to comment.