ICAC to investigate claims against Greyhound NSW CEO Rob Macaulay
The CEO of Greyhound Racing NSW will be investigated over ‘serious’ allegations regarding the operation of the organisation and his management style.
NSW
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A complaint about the operation of Greyhound Racing NSW and the management style of CEO Rob Macaulay has been referred to the ICAC and the NSW Ombudsman.
A spokesman for NSW Gaming and Racing Minister David Harris confirmed a complaint made by a GRNSW whistleblower and former executive had been referred to the anti-corruption agency.
“It’s vital that the governing bodies and senior leadership of the state’s racing codes meet the highest standards of integrity,” the Minister’s spokesman said.
“To ensure this matter is thoroughly investigated and out of an abundance of caution, Minister Harris has referred the allegations to the Independent Commission Against Corruption and the NSW Ombudsman.”
It is understood the board of GRNSW is investigating the claims made by former company secretary Ian Londish in a letter sent to the board. A lawyer representing Greyhounds NSW said in a statement any complaints made to the organisation would always be treated seriously and “handled in accordance with our with our policies and procedures”. The statement did not confirm the board was investigating.
Mr Londish, the recently dismissed GRNSW company secretary, expressed concerns that Mr Macaulay, a first time CEO, had “limited” governance skills and that directors had not been informed about critical governance issues.
The accusations of a new governance crisis at GRNSW coincide with the recent departures of as many as 10 senior executives and two female board directors, Helen Moore and Maryanne Graham, who left in March and are yet to be replaced.
It also comes after a number of recently departed staff took their grievances to Fair Work Australia amid concerns about the culture at GRNSW.
Mr Macaulay did not answer questions concerning Mr Londish’s allegations on Friday but provided the following statement.
“Transformational change such as I have been tasked to lead requires a team of high-performance people at the leadership table. I have furthered the vital work of my predecessor Tony Mestrov over the last five years of transforming this great sport to ensure that it has a bright future,” he said.
“We have animal welfare, racing safety and greyhound participants as the foremost consideration in everything we do. In the best interests of every proud NSW greyhound breeder, owner, trainer and fan, I will continue to make the decisions that need to be made.”
Among concerns raised in Mr Londish‘s letter is his beliefMr Macaulay could have conflicts of interest at the racing body.
Mr Londish further tabled the need for “either an internal … or … external” board evaluation.
This he had proposed two months before his dismissal in December 2022.
The process surrounding Mr Macaulay’s appointment as CEO in August 2022 was also an issue for Mr Londish, after Mr Macaulay gave assurances he didn’t want the role and wouldn’t be applying for it, which he alleged was against policy.
Mr Macaulay, a lawyer who founded Mascot-based law firm Pryor, Tzannes & Wallis (PTW Law) in 2008 with business partner Apostolos “Tolly” Saivanidis, was originally retained by Mr Mestrov in 2019 to act as external legal counsel for GRNSW.
PTW Law continues to provide external legal advice to GRNSW.
Mr Macaulay was appointed to the role as GRNSW Company Secretary about 2020 and to the role as Acting CEO from July 2022.
For a period last year, Mr Macaulay held all three roles simultaneously while still on the books at PTW Law as a partner.
Mr Londish raised concerns about Mr Macaulay’s multi-roles.
Among these, he states, is Mr Macaulay’s affiliation with PTW Law.
“While the corporate relationship with PTW Law was approved by the previous board, the perception of a conflict – and at times the potential of a real conflict – exists with Rob’s appointment as CEO and his ongoing relationship with PTW,” Mr Londish said in his complaint.
PTW Law’s external contract as general counsel for GRNSW, which insiders last week said cost the body upwards of $600,000 a year, covers all in-house legal work including HR operations.
This includes sexual harassment and bullying complaints as well as unfair dismissal cases.
They do not act in any litigation for GRNSW, with specialist litigators being appointed to act in those situations.
The GRNSW whistleblower hotline is also managed by an employee from PTW Law out of GRNSW’s building in Oxford Street, Darlinghurst.
Mr Macaulay’s partner status and profile was deleted from the PTW Law website following his appointment as CEO.
Mr Londish further raised questions about an offshoot of PTW Law, PTW Consulting, being contracted by GRNSW under the former CEO in late 2021 to investigate and conduct due diligence on a mooted public float of the racing entity.
ASIC documents show this consultancy firm was registered to the same business address as Macaulay and Saivanidis’s PTW Law, at 1005 Botany Road, Mascot.
Both Mr Macaulay and Mr Saivanidis, whose diverse business history includes interests in construction, talent management, foods and beverage distribution and insurance, were listed as directors of PTW Consulting, however the business underwent a name change in February 2021 when it began operating as Strategy & Commercial Consulting Group Pty Ltd (SCCG).
Records show Mr Macaulay ceased to hold the role as director of that company on August 8 last year.
Mr Saivanidis remains a director of SCCG.
Well-placed sources familiar with the IPO project last week said SCCG was contracted to manage the IPO in conjunction with Moelis Australia bank.
It’s estimated the firm billed GRNSW in the region of $1 million for their work on the IPO before Mr Mestrov pulled the plug.
Also registered to the same Botany Road address is public liability insurance firm NSure Holdings, of which Mr Saivanidis is the sole director and secretary.
NSure has oversight for all greyhound racing venues in NSW and has been engaged with adoption program processes on behalf of GRNSW.
In addition to sharing an address with PTW Law and the company previously known as PTW Consulting, NSure also shares staff with the law firm.
Further to Mr Londish’s concerns about the recruitment process pertaining to Mr Macaulay’s CEO appointment, other former senior GRNSW employees have shared their frustration about the process.
Longstanding senior executives wishing to apply for the role of acting CEO say they felt actively discouraged to do so.
Mr Macaulay was then appointed to the interim role though informed staff he had no interest in the full-time CEO position.
In a PR statement issued on August 5, the day of Mr Macaulay’s CEO appointment, Chairman John Williams declares Mr Macaulay’s appointment had been “unanimously” approved by the board following “an extensive and stringent eight-week recruitment process” for which “an external recruitment company was engaged.”
The chairman adds “more than 50 candidates from a wide range of backgrounds and with diverse skill-sets” had applied for the position.
The GRNSW statement further said interviews with short-listed candidates were conducted by the GRNSW’s CEO Recruitment Panel which recommended Mr Macaulay’s appointment.
This runs counter to claims from within the organisation.
Two well-regarded senior internal candidates who applied for the role are no longer employed while a qualified external candidate with racing industry experience last week said that after being interviewed by recruitment company The Insight Group. He was informed he had been short-listed but his second shortlist interview was cancelled.
Like National Party stalwart John “Whacka” Williams, who revealed he had Parkinsons in 2017, Mr Macaulay is a proud Nationals Party member who twice, in 1998 and 2001, ran as candidate for the Nationals in the seat of Hunter. He was defeated both times by the ALP’s Joel Fitzgibbon.
Mr Londish’s letter further raises issues re the culture at GRNSW under Mr Macaulay which is, he said, “poor, even bad”.
During his 10-month tenure, Mr Macaulay has presided over the departures of more than a dozen senior executives and staff including GM Greyhound Development and Advocacy Dr Alicia Fuller, GM Tracks and Infrastructure David Aldred, Head of HR Kathy Ikonomidis, GM Marketing Nick Babos, Head of Sales Catherine Micalef, Regional Rehoming Manager and US export Co-ordinator Dr Caitlyn Tremble, Digital Content Co-ordinator Paul McCaffrey and Mr Londish.
In the meantime, Mr Macaulay’s older brother Andrew was hired by Mr Mestrov on a contract said to be worth in the region of $200,000 a year to oversee the sale of the international media rights of greyhound races. He remans on the books at GRNSW.
Andrew Macaulay’s wife Alexandra, has also been consulting on PR for former horse property and proposed greyhound kennel facility Bylong Park in Denman near Muswellbrook.
Mr Londish declined to comment on the investigation when approached.
Members of the board did not respond to a list of questions relating to Mr Londish’s allegations emailed to them however lawyerDanny King of Danny King Legal issued a statement she said was on the board’s behalf: “Any complaints made to the organisation are taken seriously and handled in accordance with our policies and procedures.”
Editor’s Note
A representative of Greyhound Racing NSW contacted us to tell us that any reference to Mr Macaulay as having limited governance skills or being a ‘one time’ CEO is false, noting he served as the Managing Partner of PTW Law for 10 years and has held directorships of a number of other entities.
It was also denied that Mr Macaulay held three roles simultaneously, with the representative telling us that Mr Macaulay ceased to be Company Secretary in Sep 2021, ceased to act as external legal counsel on 20 May 2022 (being the day he was contracted to be the Acting CEO), and that a replacement from PTW was arranged to enable Mr Macaulay to perform the role of Acting CEO.
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