ICAC finds corruption in $12m grandstand probe

The NT’s corruption watchdog has handed down findings of corruption, misconduct and more following its investigation into the NT Government’s awarding of a $12m grandstand grant to the Darwin Turf Club in 2019.

Independent Commissioner Against Corruption Ken Fleming. Picture: Keri Megelus

THE Territory’s anti-corruption watch dog Mr Ken Fleming has found five people, including Chief Minister Michael Gunner’s former Chief of Staff, engaged in improper conduct following his investigation into the Northern Territory Government’s awarding of a $12 million grandstand grant to the Darwin Turf Club (DTC) in June 2019.

In his “By the length of the straight” public statement ICAC commissioner Fleming handed down findings of corruption, misconduct, unsatisfactory conduct, breaches of public trust, failure to manage conflicts of interest, mismanagement of public resources and detriment to the public interest.

The findings of improper conduct were made against the former Chief of Staff to the Chief Minister Mr Alf Leonardi; Darwin Turf Club chairman and Jaytex Construction director Mr Brett Dixon; Darwin Turf Club Incorportated board member Mr Damien Moriarty; Former DTCI chief executive officer Mr Keith Stacy; and Jaytex Constructions and NT Kerbing general manager and co-director Mr Matthew Moss.

A finding of improper conduct was also made against the Darwin Turf Club Incorporated.

Mr Fleming said failures have been identified in respect of the former Darwin Turf Board Incorporated.

“Moreover, I found that a duplicitous process was underway that was utterly lacking in transparency and resulted in DTCI being in breach of the terms of its grant agreement with the Northern Territory Government,” the ICAC commissioner said.

“The NTG’s attempted investigation to determine whether the terms of the grant agreement had been breached by multiple failures to declare conflicts of interest was thwarted by the DTCI board and secretariat, which failed to provide information and falsely declared that documentation did not exist.”

Mr Fleming said Mr Dixon’s actions may be referred to the Director of Public Prosecutions for the consideration of criminal charges, and to the Commissioner of Police for consideration as a disqualified person under section 40 of the Associations Act 2003.

ICAC Commissioner Fleming said the manner in which public money was granted is of issue. The report finds that the process applied was deeply flawed and was affected by political donations, lobbying, failure to declare hospitality, a potpourri of conflicts of interest, abuse of process, false statements, fanciful claims of economic benefit and a cavalier proponent.

The report says Mr Leonardi was involved throughout the process, lobbying on behalf of Mr Dixon, advising him of what to write — “this is the letter you need to write to us” — what to include, where to send his proposal, and providing his own personal assistance in several ways, including, in his words, “waiting on the right time to pounce.”

“A general letter, substantially authored by Mr Leonardi, was signed by Mr Dixon and sent on behalf of DTCI with vague details and inflated, inaccurate or absent economic and employment claims,” Mr Fleming says. “This was despite repeated attempts by conscientious departmental staff to elicit the required information to progress a market-led proposal.”

Commissioner Fleming found that both the chairman, Brett Dixon, and the board of the Darwin Turf Club failed to declare and manage conflicts of interest in the process leading to the award of the contract to construct the grandstand to one of Mr Dixon’s companies, Jaytex Pty Ltd, in August 2019.

He also found that the Darwin Turf Club Board breached its obligations under its funding agreement with the NT Government, which was executed by Mr Dixon on behalf of the DTC, by failing to disclose a conflict of interest which meant that an NT Government investigation into potential breaches of the grant agreement was thwarted.

Originally published as ICAC finds corruption in $12m grandstand probe