Drug smuggler Rohan Arnold still holds major share in Mortlake and Yass saleyards operators

More than two years since Rohan Arnold was busted in a drug sting in Serbia, he continues to hold a major share of the Mortlake and Yass saleyards businesses.

In control: Saleyards stakeholder Rohan Arnold at the opening of the Yass saleyards in 2016.

DRUG smuggler Rohan Arnold still holds the whip hand over the operations of the Mortlake and Yass saleyards — from his jail cell in NSW.

More than two years since Mr Arnold was busted in a drug sting in Serbia, he still holds 44.9 per cent shares in WVLX Operations Pty Ltd and SELX Operations Pty Ltd, the operators of the Mortlake and Yass saleyards, respectively.

He owns the stakes through SELX Holdings Pty Ltd, which, in turn, is 100 per cent owned by another of his companies, Pyrtee Pty Ltd.

The Weekly Times understands the other shareholders in the saleyards businesses have been making a concerted effort over the past two months to remove Mr Arnold as a shareholder, including discussions on fair value of the assets.

Mr Arnold was dramatically arrested in a Belgrade hotel by Serbian police working with the Australian Federal Police in January, 2018, over the ­second largest cocaine importation seized in Australia.

In May last year he pleaded guilty to conspiring to import 1.28 tonnes of cocaine into Australia.

WVLX director and Yass Valley mayor Rowena Abbey said in January two years ago the directors of the saleyard companies would seek to remove Mr Arnold from its board.

In February last year, Mr Arnold transferred his directorship of WVLX Operations and SELX Operations to his accountant, James Daniels.

Mr Daniels is the owner of Federation Tax & Accounting, based in Canberra.

Federation Tax & Accounting has been the registered office of Mr Arnold’s businesses, SELX Holdings and Pyrtee, for a number of years.

In November, 2014, Mr Daniels set up Dirt Holdings Pty Ltd, with himself as sole director and secretary of the company.

In October, 2016, ownership and directorship of Dirt Holdings was transferred to Mr Arnold.

The Australian Securities and Investments Commission is moving to dissolve the company.

Mr Arnold has already been removed as a director or part owner of three childcare centre companies he was involved in with David and Ben Hewlett. ASIC documents show Mr Arnold was removed as a director and co-owner of the childcare companies in February, 2018.

David Hewlett and his wife Jenny hold a 5.7 per cent share in WVLX Operations and SELX Operations through Solar Crow Pty Ltd.

Other directors of the saleyard companies, aside from Cr Abbey and her husband Brendan Abbey, include CBRE senior director Col Medway, lawyer Norman Napper and Young farmer Angus Metcalfe.

Mr Medway owns a 17.8 per cent stake in WVLX Operations and SELX Operations through two family companies.

Mr Metcalfe and his partner, Alex Dalglish, has a 8.5 per cent stake, Mr Napper owns 6.8 per cent and the Abbeys own 18.3 per cent.

Mr Medway told The Weekly Times he and fellow directors of WVLX Operations and SELX Operations had been attempting to remove Mr Arnold from the company since the day he was arrested.

“We are doing everything in our power to resolve the purchase of his shares and remain committed to that,” he said.

“We can only operate within the Corporations Act and the law.

“This has been very frustrating.”

A source said he believed major saleyards owner Palisade Investment Partners was interested in buying Mr Arnold’s shares.

However, Garry Edwards, who manages Palisade’s saleyards investments, denied that was the case.

“We have not been discussing at all buying Rohan Arnold’s shares,” Mr Edwards said.

Palisade Investment Partners owns or leases 10 saleyards across eastern Australia.

However, according to Mr Edwards, all its investments to date have been outright.