SA Harness Racing Club committee members quit over $3.5m loan
SA’s peak harness racing club is in turmoil, as directors quit over a $3.5m loan they say puts the future of Globe Derby Park in jeopardy.
SA News
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Three committee members of the state’s peak harness racing club have quit over a $3.5m loan that could result in Globe Derby Park ending up in the hands of a developer.
SA Harness Racing Club directors Lynne Copeland, Des Farrow and Bob Stanley have announced their resignations, claiming the loan was negotiated without their approval.
In a public statement, the trio said they were concerned the ailing club would not be able to meet the terms of the loan, negotiated between club president Ann Mowday and a Queensland businessman, Kevin Seymour.
The trio’s statement said they had been concerned with the club’s management – and its deteriorating financial position – since they were elected to the committee late last year.
“The final straw, as far as we were concerned, came when we were advised that approaches had been made to Kevin Seymour seeking a substantial loan,” it said.
“The initial proposal was deferred as it was felt the club was not in a position to service such a loan.
“Recently, certain committee members renewed the approach to Mr Seymour for a vastly increased amount.
“The terms and conditions were tabled last week. Frankly, they are onerous and cannot be met in the current financial situation.
“They also required certain declarations relating to solvency which, in our opinion, could not and should not be signed.
“Despite our concerns, the other four members of the committee voted to immediately accept the loan.
“That decision, in our view was reckless, and not one we could be associated with. Therefore, we tendered our immediate resignations.”
Under the terms of the loan, a non-commercial interest rate will be charged, with payments due monthly. All of the club’s assets at Globe Derby Park have been put up as security.
Mrs Mowday asked for the loan to be approved at a meeting early last week.
Mrs Copeland and Mr Farrow objected while Mr Stanley did not attend because of suspension.
Ms Mowday had earlier argued the loan would enable the embattled club to pay off debts exceeding $3.5m, including outstanding loans from the Police Credit Union and a club member, Geoff Easom.
The club’s financial situation has been deteriorating since a developer, Michael Vidale, failed to pay $2.5m outstanding from a $5.5m deal in 2018, when one of his companies, GIC Globe Derby Park Pty Ltd, was handed title to land at Globe Derby Park without paying the full amount.
Mrs Mowday repeatedly has refused to respond for comment on club matters.