JackJumpers owner and CEO responds to conflict of interest claims
The JackJumpers owner has responded to conflict of interest claims between the CEO and former sports minister Jane Howlett, noting the nature and timing of payments. LATEST ON THE SAGA >>
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THERE was no possibility of a conflict of interest surrounding government payments to the JackJumpers, the team’s owner and CEO say.
Concerns have been raised in parliament about the potential for a conflict of interest between the official duties of former Sports Minister Jane Howlett and her personal relationship with JackJumpers CEO Simon Brookhouse.
The matter is expected to dominate debate in the House of Assembly for a fourth day on Tuesday.
But in a joint statement, JackJumpers owner Larry Kestleman and CEO Simon Brookhouse said payments to the team were signed and supervised by other government departments and the timings did not coincide with Mr Brookhouse's’ tenure.
“There has been speculation in Tasmanian parliament and various media outlets that there is a conflict of interest between the organisation and the Tasmanian Government. The Tasmania JackJumpers wish to be clear that this is not the case,” the statement said.
“The Sponsorship Agreement between Tasmania JackJumpers (Tasmania Basketball Pty Ltd) and The Crown in Right of Tasmania (on behalf of the Department of State Growth) is dated July 1, 2020 and was signed on behalf of the club by Larry Kestleman and on behalf of the Tasmanian Government by Premier Peter Gutwein.
“As previously stated, the funding negotiations commenced with previous Premier, Will Hodgman and were concluded with current Premier, Peter Gutwein.”
Ms Howlett was removed from the Sport and Recreation portfolio by Premier Peter Gutwein during a cabinet reshuffle on February 17 after two years in the job.
She resigned from her remaining portfolios a week later, citing family reasons after the death of her brother and has taken two weeks’ leave from parliament.
She has made no public statements, however, Premier Peter Gutwein says she has denied any improper conduct.
Mr Kestleman said Ms Howlett played no role in supervising the payment of government money to the JackJumpers or associated entities.
“All performance measure reporting with regards to this funding agreement is direct to the Department of State Growth under the auspices of Minister Roger Jaensch,” they said.
“To date, all relevant milestones have been met. The Department of Sport and Recreation has no oversight of this agreement.”
Mr Brookhouse commenced his role as CEO on September 1, 2020, and first arrived in Hobart on September 27, 2020.
The joint statement said the funding for the Derwent Entertainment Centre redevelopment was not provided to the JackJumpers.
“This funding too was negotiated by Mr Kestleman directly with the former Premier Will Hodgman and current Premier Peter Gutwein,” the JackJumpers statement said.
“The milestone reporting for this funding is directly with the Department of State Growth.
“At no point has the Department of Sport and Recreation had any oversight of this funding.
The statement said claims the JackJumpers had received up to $100m in funding were “manifestly untrue”.
“The JackJumpers’ share of funding is $10m over five years which includes a statewide community activation program in schools.”
Howlett matter ‘put to bed’ says MP as Labor demands inquiry
QUESTIONS about the conduct of former Sports Minister Jane Howlett had been put to bed and there was no need for an independent inquiry, her Liberal colleague Roger Jaensch said.
Labor and the Greens continue to raise questions about the probity of Ms Howlett’s close relationship with JackJumpers CEO Simon Brookhouse but Mr Jaensch said on Monday the matter had been thoroughly canvassed.
Ms Howlett has told Premier Peter Gutwein she had done nothing wrong, before resigning her minsterial portfolios for family reasons following the death of her brother.
“Ms White and those opposite us have failed to provide any evidence only innuendo. I don’t think there’s grounds for an inquiry,” he said.
“Ms White in a spectacular failure of leadership in the first week back in parliament this year, has decided to burn it up trying to get a political scalp based on rumours and innuendo and harming a woman, a colleague of mine, who’s off on leave grieving the loss of a family member.”
Mr White said Labor would keep asking questions in parliament until answers were forthcoming or an independent inquiry was called.
“Integrity in politics is vital in order for the public to have confidence and to trust the decisions that government make,” she said.
“We and the community deserve answers about whether or not there was a conflict of interest involving the allocation of $100 million of taxpayer funds ... to ensure that it was done with probity, proper process and that if there was a conflict of interest it was declared.
“I’ll say this to the government: this issue isn’t going away.”
Greens leader Cassy O’Connor said the government’s response to questions in parliament last week had been wanting.
“We got the same version of the same non-answer from the Premier and the non-answer was: ‘There is nothing to see here, move on, let me tell you how terrific I am’.
“The issue here is that a fish rots from the head. And what all the ministers in the government know is that if they get up to that lectern and don’t properly answer that question, or tell the truth, there’ll be no consequences”.
Labor threatens to spark inquiry over Jane Howlett
Labor is doubling down on its accusations against former sports minister Jane Howlett, despite being branded as liars and rumour-mongers by the government.
It comes after Labor accused Ms Howlett of having an affair with JackJumpers CEO Simon Brookhouse, which could be a conflict of interest if proven true.
Labor leader Rebecca White is now threatening to bring in the integrity commission, who would have the power to grill the government as part of a full-scale investigation.
Additionally, Ms White said they could also call upon the Auditor General to launch an independent inquiry and act as a referee.
“We continue to have concerns that the truth has not been told in this manner, and it must really be cleared up,” Ms White said.
“If [Peter Gutwein’s] got nothing to hide, then he should clear this up by agreeing to an inquiry to understand if there was a conflict of interest.”
She said it was in the public interest because of the $100 million in taxpayer money spent during her term as sports minister.
Ms White said if Mr Gutwein did not agree to an independent inquiry by the end of this week, then Labor would force the issue.
Liberal MP Roger Jaensch said he was “absolutely confident” that Ms Howlett and Mr Gutwein were telling the truth on this issue.
Mr Jaensch said these were unsubstantiated allegations based on nothing more than gossip.
“The best thing Labor could do in their first week back in parliament is build a week of stunt’s based on rumour and innuendo, looking to do damage to a member of parliament who is off on leave grieving the loss of a family member,” Mr Jaensch said.
“I think that was an atrocious use of the first week back in parliament by the opposition and I say shame on them.”
Liberal MP Michael Ferguson said Ms White’s claims were nothing more than lies protected behind parliamentary privilege.
“This is a longstanding and repetitive pattern of lying for political point scoring from Ms White. We have said many times that it must cease,” Mr Ferguson said.
“Unfortunately, misleading and blatantly wrong statements are now a pattern of behaviour for Ms White.”
Ms White said Labor was not going to back down on this issue until a full investigation had been conducted.
“This matter isn’t going away for the government and I don’t think that they should think it will.
“This government has a stench about it and it needs to be dealt with in a transparent way to ensure that the integrity in this government is under scrutiny and can be upheld for the public interest.”
Premier defends stability of government after ministers depart
PREMIER Peter Gutwein has mounted a spirited defence of the Liberals in power, saying his party was the epitome of strong, stable majority government.
Speaking after the loss of two ministers in as many weeks, Mr Gutwein said that change was inevitable but his government had performed far better than it’s predecessors.
“Since the Liberals were elected in 2014, we’ve had two premiers, we’ve had one Treasurer, and we’ve had one Deputy Premier.
“When Labor were last in government, if memory serves me, correct they had four premiers, seven deputy premiers, I think they had four treasurers and they might have gone through about eight Attorney-General’s.
“So as far as strong, stable majority government term since 2014, we’ve demonstrated that we can deliver, of course at different times there will be changes but we simply get on with it, do the job that we were elected to do.”
Labor was in power for 16 years between 1998 and 2014.
Mr Gutwein said he expected questions about former Sports Minister Jane Howlett when parliament returns on Tuesday.
Ms Howlett resigned from her portfolios on Friday following the death of her brother. She is also facing questions over a potential conflict of interest.
“Can I point out just in terms of Labor, if you look back over the last period since the election, there instability has been something of almost an art form,” he said.
“They began with one leader and they switched to another leader.
“That second leader lasted a record amount of time in terms of how short it was, then they bounced back to the old leader. They are a party in chaos.”
Mr Gutwein said the government would focus on the things that matter to Tasmanians.
“The focus will be on ensuring that we have a strong economy, ensuring that we can continue to invest record amounts into those essential services that Tasmanians need health, education, housing, and ensuring that we continue to lift our gaze to the horizon and beyond.
“I think Tasmania should be aspirational. I think that we have an opportunity now in terms of a number of areas, certainly in terms of an AFL licence later this year, to actually demonstrate the term Tasmania on the national stage is a state of this federation and therefore can hold its own any company.”
Parliament resumes on Tuesday morning. The swearing in of the Minister taking over Ms Howlett’s responsibilities is expected on Monday.
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