Inquiry finds Queensland Racing Industry in Disarray
Tuesday 25 February 2014 @ 1.41 p.m. | Legal Research
The Queensland Racing Commission of Inquiry has found the industry has been beset with serious administration failures and has made a number of recommendations. In particular, the Commission of Inquiry has recommended the undertaking of an Australian Securities and Investment Commission (ASIC) investigation into the conduct of a number of former board members and senior racing executives, including Bob Bentley, the former Racing Queensland (RQ) chairman, and Bill Ludwig, a former RQ board member.
At the release of the Inquiry’s report this month, Attorney-General Jarrod Bleijie and Minister for Racing Steve Dickson thanked The Honourable Margaret White AO, Commissioner of the Inquiry and said the Queensland Government would now carefully consider the recommendations.
Key Allegations
A key allegation against Mr Bently and Mr Ludwig is that the men may have breached their duties by failing to resolve a deal between Racing Queensland (RQ) and gambling giant Tattsbet. Should ASIC make findings that the executives recklessly administered the industry, the two former strongmen of Queensland's racing industry could be jailed for up to six months. The matter is currently before the Supreme Court in Brisbane, with RQ claiming it's owed up to $130 million by Tattsbet in access fees paid by corporate bookies.
Justice White also recommended eight other racing identities be referred to ASIC for investigation under sections 200B and 200D of the Corporations Act 2001 (Cth) including former RQ board members and former RQ executives.
In a statement to reporters earlier this month Mr Bleijie said:
"These were dark days for racing in Queensland. It has been a cloud over the entire industry… Racing Queensland was funded by taxpayers but the Inquiry found it was essentially being run like a personal empire with little Government oversight of several procedural matters.
The report outlined a range of issues including a ‘flat’ and ‘unsatisfactory’ management whose members ‘may also be found not to have acted in the best interests of the company’.
It also found then Chairman Bob Bentley ‘did not act with integrity’ at times and, along with board member Bill Ludwig ‘compromised its ability to fulfil its functions in accordance with good corporate governance principles’.
In addition, the report found senior officers and executives’ salaries went unchecked and contracts were awarded without due process. It is astounding that an industry of its significance and capacity lacked basic structure.”
According to Mr Bleijie, although the inquiry had cost $3 million, the overall cost in possible losses caused by the previous RQ board to the racing industry was tens of millions, and the possibility of some aspects of the report being referred to the Director of Public Prosecutions or other prosecution bodies has not been ruled out.
Although no adverse finding were made against three former Labor racing ministers, Justice White did raise questions concerning a lack of government oversight of RQ's dealings.
Key recommendations raised in the summary include:
- Scrutinizing whether the functions of the Racing Science Centre are required within government, and whether they can be outsourced or absorbed into a larger government body;
- Altering the Racing Act 2002 (QLD) to include a provision that the Chairperson of the Queensland All Codes Racing Industry Board be one of the two other members independent of the industry; and
- Developing a financial model to support the three codes of racing;
- Reducing the reliance on Government funding; and
- Whether a national regulatory body for wagering is required.
A copy of the report can be accessed on the Racing Inquiry’s website: www.racinginquiry.qld.gov.au
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