‘Corrupt conduct’: ICAC boss weighs in on Turf Club saga

The boss of ICAC has acknowledged concerns about the Government’s claim for the Darwin Turf Club to repay $12m.

THE head of ICAC has entered into the discussion around Territory Government plans to

recoup $12m from Darwin Turf Club.

In reply to a question from the NT News, Independent Commissioner Against Corruption Michael Riches acknowledged there is a legal process against the ICAC report that prompted the Government’s push to recoup the $12m.

The NT government is basing its campaign against the Turf Club on Mr Riches predecessor Ken Fleming’s report into the controversial $12m Fannie Bay racetrack grandstand.

Chief Minister Michael Gunner is basing his Government’s claim to recoup the money on Mr Fleming’s findings of corrupt conduct against former Darwin Turf Club chairman Brett Dixon whose company Jaytex built the grandstand.

The NT News emailed a question to the ICAC asking whether, given the compromised nature of Mr Fleming’s report, the Government should be basing its legal action around the findings.

‘The NT Government is attempting to recoup the value of the $12m Fannie Bay grandstand grant from Darwin Turf Club using the ICAC report as the basis for this claim.

‘Central to the Government’s argument the Turf Club should refund the money is the ICAC report finding of ‘corrupt conduct’ against former Turf Club chairman Brett Dixon.

‘Given that particular ICAC report is subject to a number of legal actions and has also been compromised through its treatment of former NT News editor Matt Williams, will the ICAC make a public comment advising caution around using the report as a basis for re-couping the $12m? Will the (ICAC) retract the report?’

In reply, Mr Riches acknowledged concerns around the report.

“It is a matter for the Government what action it wishes to take in respect of the $12m,” he wrote.

“No doubt the government is aware that the former Commissioner’s report into the Darwin Turf Club investigation, and his public statement, are the subject of judicial proceedings.”

There are fears the Chief Minister’s attempts to recoup the $12m could kill Darwin Turf Club.

Dixon rejected the findings of ICAC and commenced Supreme Court proceedings to quash the decision.

Darwin Cup Carnival at risk in $12m grant funding stoush: Former chairman

THE Chief Minister’s efforts to recoup $12m of grant money he took into cabinet himself risks the future of the Darwin Cup Carnival, a prominent Darwin Turf Club figure has claimed.

Ted Bailey, who is a life member of the DTC and was the chairman of the club for 14 years, said in a statement that he “fears for the survival of the club”.

Mr Bailey’s comments come two days after club chief executive Brad Morgan ­resigned.

The Sunday Territorian understands the government still favours cutting the turf club’s funding for a number of years to recoup the $12m and prevent the ­organisation from going bankrupt.

Darwin Turf Club chairman Ted Bailey in 1993. Picture: File

Mr Bailey said Mr Morgan’s departure was a “deva­stating blow for the club” and expressed concerns about the DTC’s future.

“Brad, in his time at the DTC, was accustomed to ­operating with a professional board and given autonomy to carry out his functions, apparently in recent months this has changed,” he said.

Mr Bailey said some of the biggest events on the Territory’s racing calendar were under threat due to the DTC’s precarious position.

“Business people of Darwin who rely on revenue from the month-long Cup Carnival need to be very concerned about the ability of the club to stage this successful event in the future and be very vocal in criticism of the government if they pursue repayment of the grant,” he said.

Government ministers have repeatedly said recouping the $12m could happen over a number of years. Picture: Che Chorley

In response to questions from the Sunday Territorian, a spokesman for Chief Minister Michael Gunner pointed to the ICAC report released last year which the government says made no adverse findings on any minister.

Mr Gunner’s office did not answer questions as to ­whether its attempts to recoup $12m from the Darwin Turf Club would endanger the ­organisation’s survival.

However, his office indi­cated it still supported previous comments made by ministers last year saying the government could partially cut annual funding to the turf club over a number of years until it had recouped the entire of the $12m.

Mr Gunner was last year outed by a ministerial colleague as the person who took the grant into cabinet.

DISCLOSED: Letter asking for $12m grant repayment

FORMER Darwin Turf Club chairman Brett Dixon says the organisation is in no position to repay the $12m grant it was handed by the Territory Government to build the Fannie Bay grandstand.

Mr Dixon, who stepped aside as Chairman last year after the release of the Independent Commission Against Corruption report into the grandstand tender process, said the turf club does not have the cash reserves to repay the grant.

“Even with the success of Silks, the agreement with the club’s financier states the loan for Silks must be paid off in full before any dividends to the Darwin Turf Club can be distributed and that is many years away.

“If my memory serves me correctly, the NTG acquittal process was all signed off by an independent auditor in October or November 2020. So not quite sure how their claim of misuse of funds has come about.

“If they are relying on the ICAC report to ask for repayment of the grant, I would think the sensible thing is to provide some procedural fairness and wait until the many Supreme Court challenges against the ICAC and the report are complete, which will be this year sometime. All this would require is to put the renegotiation of the funding which is due this year back 12 months.”

In a letter obtained by the NT News, Chief Minister Michael Gunner writes: “My government remains committed to recovering the $12m that was provided to the Darwin Turf Club for the construction of a grandstand.”

Meanwhile, Thoroughbred Racing NT chairman Syd Stirling said he didn’t believe the repayment request was ‘viable’.

“We’ll enter the process in good faith with Government and we’ll go from there,” he said. “I would have thought the grandstand is a wonderful facility that’s proving itself and is packed out for the forthcoming Darwin Cup and it’s essentially a taxpayer owned asset sitting on Crown Land. The grant was delivered and the job was done.”

Darwin Turf Club chairman Richard O’Sullivan says the Territory Government’s demand for the return of a $12m grant to build the controversial Fannie Bay grandstand is unfair.

“The current board is being held to account unfairly in our view for what’s taken place in the past and we’re concerned about the potential impact on the wider industry, the trainers, the jockeys, the strapper and stable hands.”

Deputy Chief Minister Nicole Manison said the Government’s push to have the money repaid reflected the ICAC report’s recommendations. “That ICAC report was very serious with it’s finding and we think the right thing to do is to get the turf club to pay that money back to taxpayers.”

Deputy Opposition Leader Gerard Maley accused the Territory Government of throwing the Turf Club “under a bus”. The ICAC report delivered a finding of ‘corrupt conduct’ around the tender process.

Independent MLA Kezia Purick described ICAC’s report as “flawed”.

TURF CLUB GRANT RETURN REQUEST ‘UNFAIR’

Darwin Turf Club chairman Richard O’Sullivan says the Territory Government’s demand for the return of a $12m grant to build the controversial Fannie Bay grandstand is unfair.

The NT News reported yesterday representatives from the NT Government’s Department of Business met with Turf Club leadership last week to demand the money be returned.

The request was formalised in a letter delivered yesterday to Thorougbred Racing NT chairman Syd Stirling and forwarded to Mr O’Sullivan and the board.

Mr O’Sullivan said the serving Turf Club board had nothing to do with the grandstand construction.

“The current board has no part in the grandstand construction,” Mr O’Sullivan said.

“The current board is being held to account unfairly in our view for what’s taken place in the past and we’re concerned about the potential impact on the wider industry, the trainers, the jockeys, the strapper and stable hands.”

Mr O’Sullivan would not answer questions around the Turf Club’s future if the claim is enforced or whether the Darwin Cup Carnival would be affected.

“Ticket sales so far for the Darwin Cup are the greatest ever and we’re looking forward to the most successful cup carnival on record and bringing into the Territory a very large number of tourists.”

Chief Minister Michael Gunner has not yet commented on the letter-of-demand but through a spokesman said the Independent Commission Against Corruption report into the grandstand deal found corrupt conduct and misconduct by individuals outside Government.

The spokesman said the Government agreed in-principle to support all recommendations contained in the ICAC report including recovering the $12m provided to the Turf Club for the grandstand construction.

“The ICAC Report made no findings against the Government or against any Minister,” he said.

“The Northern Territory Government will recover the $12m of government funding from the Darwin Turf Club and are working with industry on the most efficient means of achieving this.

“We will work with the new Board to ensure racing continues to attract people to the Territory.”

Should the Turf Club board oppose directly repaying the grant, the money could be recouped by reducing the NT Government’s annual payments to NT Racing.

DARWIN TURF CLUB BOSS RESIGNS

THOROUGHBRED Racing NT has received a letter-of-demand for return of the $12m granted to Darwin Turf Club for construction of the Fannie Bay racecourse grandstand.

The letter, addressed to TRNT chairman Syd Stirling, has been forwarded to the Turf Club board.

EARLIER: DARWIN Turf Club chief executive Brad Morgan has resigned amid growing concern about the organisation’s ability to repay a $12m debt being chased by the NT government.

Mr Morgan resigned last Wednesday and is expected to finish up in May.
Mr Morgan was employed by previous members of DTC board who were last year told by Chief Minister Michael Gunner to resign after the release of a damning but compromised ICAC report into the $12m Fannie Bay grandstand grant.

The NT News understands the Territory Government has put into action the Chief Minister’s threat to re-coup the $12m grant it gave to the Turf Club to build the grandstand.

The NT News sent the government a series of questions around recouping the grant, including the legal basis upon which the claim is based.

The government did not respond to the questions by deadline but vaguely confirmed it would seek to recover the money.

“The Northern Territory government will recover the $12m of government funding from the Darwin Turf Club and are (sic) working with industry on the most efficient means of achieving this,” a spokesman said.

A delegation from the Department of Business is believed to have met with the DTC last week demanding repayment of the $12m.

It is understood the DTC requested that the demand be made in writing.

Mr Morgan’s decision to leave the DTC comes after more than two years of turmoil caused by the grandstand grant.

Darwin Turf Club chairman Richard O’Sullivan ‘expressed appreciation’ for Mr Morgan ‘guiding the club throughout a tumultuous two years.

“Brad’s leadership over the past two years and throughout the most challenging time in the club’s history has been first-class, and we wish him the very best in his pursuit of future business opportunities,” he said.

“Mr Morgan advised the Board that he would be available to provide his ongoing services as CEO through to the Annual General Meeting in May, 2022 and the completion of a strategic plan currently underway for the future of the Club.”

Mr Morgan said he was proud of his achievements with the board.

“I am very proud to have been a part of the team that successfully established Silks as Darwin’s premier licensed club and gaming venue with some 15,000 members and I am also very proud of our team who, despite the challenges of the COVID-19 Pandemic, successfully delivered both the 2020 and 2021 Great Northern Darwin Cup Carnivals,” he said.

“I am pleased the club has recently been able to secure funding from Thoroughbred Racing NT, which will be used to renovate stable facilities and redevelop the mounting yard to enhance human safety and animal welfare standards”.

Opposition Leader Lia Finocchiario said this was the latest blunder from the Gunner Government regarding a deal that should never have happened in the first place, and that asking for the $12 million back is the “height of hypocrisy”.

“This is just one more example of Michael Gunner throwing the Darwin Turf Club under the bus in a desperate attempt to distance himself from a corruption scandal that is stained with his fingerprints,” she said.

“The decision by the Chief Minister to punish members of the Turf Club and the wider racing industry for his mistakes is absolutely disgraceful,” she said.