Solvency ‘not driving’ equestrian receivership

Several of Equestrian Australia’s state branches are calling for the national body’s directors to be removed.

Five of Equestrian Australia’s state branches have called for the national­ body’s directors to be removed. Pictures, Lockyer Jump Club hosting a showjumping day. Picture: Chris Sheen

Five of Equestrian Australia’s state branches have called for the national­ body’s directors to be removed­ and have questioned its decision to enter voluntary administration after Sport Australia took the unprecedented step of withdrawing funding after years of in-fighting.

In a letter sent to KordaMentha’s Craig Shepard on Sunday, the chairpeople of the NSW, Victorian­, Tasmanian, South Aust­ralian and Western Australian branches raised concerns about the administrator’s proposal to clean up the organisation and provided an alternative they argue is a “vastly better path to take”.

The five state branches argue that KordaMentha’s “one member, one vote” proposal, which will give each of the organisation’s 20,000 members a say in the admin­istration process, will stop meaningful representation for smaller disciplines such as vaulting and will dilute the voices of smaller branches.

In a separate joint statement sent by the five branches on Wednesday, Equestrian South Australia chairman Steve Ludlam poked holes in the reasons behind EA’s decision to enter voluntary administration, saying KordaMentha’s own report showed the national body was still solvent.

“The KordaMentha report clearly shows that EA is solvent with net assets of more than $1.8m,” the statement reads. “There­fore, the administration process is unrelated to insolvency and will waste more than $250k of member funds.

“It is evident that the administration process is being used to drive constitutional change.”

The state branches’ proposal is pushing for a “more representative voting structure for future constit­utional change”, a special general meeting to vote on those changes and the appointment of an independent external adviser.

Their selection for independ­ent chairman is former NSW Office­ of Sport chief Matt Miller.

The Australian revealed in March that $1m in taxpayer funds was awarded to a firm connected to the son of Equestrian NSW president and former ACT magistrate Peter Dingwall to resurface­ two arenas at the Sydney Inter­national Equestrian Centre. Mr Miller signed off on the decision.

The matter was referred to the state’s Independent Commission Against Corruption in May after concerns over conflicts of interest.

The Australian is not suggesting Mr Miller or the Dingwalls had any conflict of interest, only that the matter is being investigated by ICAC.

The state branch letter flags that five of the six states will likely block KordaMentha’s proposal at a creditor’s meeting next week, which could lead to a deadlock and the liquidation of the national body. Such a move would be disastrous for every rider across the nation­, effectively preventing com­petitions and events, and dashing hopes of sending a team to the Olympics in the process.

Current EA spokesman John Glenn said on Wednesday he was bewildered by the demands.

“Are the states really of the view that the members should not have a say in the future of the sport and will they defy what the membership wants?” Mr Glenn said.

The KordaMentha report says the states’ proposal does not meet any of the requirements of stakeholders such as the Australian Sporting Commission and the Australian Olympic Committee; a state-based structure would only be representative of the state branch­es (excluding Equestrian Queens­land); and members would miss out on an immediate vote.

KordaMentha argues its own model would best serve the interests of creditors and members.

Equestrian Australia, which has had $13m in taxpayer funds over four years, has been read the riot act by Sport Australia and the AOC. In order to send a team to Tokyo, the body will have to show it is conducting its activities in compliance with the AOC constitution, the Olympic Charter and the rules of the Federation Equestre Internationale.

The state branches used the July 5 letter to argue they were acting in good faith and had worked hard to find a sensible middle ground on creditor outcomes and constitutional reform.