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House of Assembly - Fifty-First Parliament, Third Session (51-3)
2009-03-24 Daily Xml
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SOUTH AUSTRALIAN JOCKEY CLUB

The Hon. M.J. WRIGHT (Lee—Minister for Police, Minister for Emergency Services, Minister for Recreation, Sport and Racing) (14:11): I seek leave to make a ministerial statement.

Leave granted.

The Hon. M.J. WRIGHT: In December last year, Thoroughbred Racing SA (TRSA) retained the legal firm Lipman Karas to undertake a review of the corporate governance structure of the South Australian Jockey Club (SAJC), with special reference to the validity of last year's SAJC board elections.

TRSA is the controlling body of horseracing in South Australia, representing the interests of all metropolitan, regional and country clubs around the state. It was formed after the racing industry was corporatised by the former Liberal government. As a result of corporatisation, the state government no longer has control or influence in the industry's management. Let me make it very clear that TRSA's decision to engage Lipman Karas to undertake this review of the SAJC was not initiated as a result of any concerns or issues as to the adequacy of the standards of probity and stewardship associated with the conduct of thoroughbred racing events in South Australia, the conduct of wagering on thoroughbred racing events, the sale of Cheltenham or the SAJC's decision to vacate Victoria Park.

The independent review was conducted to look into the corporate governance of the SAJC following allegations of membership voting irregularities in the lead-up to elections in November 2008. The Independent Gambling Authority was provided with a copy of the Lipman Karas report by TRSA on Wednesday 4 March, pursuant to statutory powers available to the authority under the Authorised Betting Operations Act. The Independent Gambling Authority advised the SAJC that allegations contained in the Lipman Karas report were of a serious nature and that, if TRSA's recommendations were not adopted, the authority would consider its own inquiry into the allegations made.

On the afternoon of Thursday 5 March, TRSA provided me with a copy of the Lipman Karas report on the basis that I formally agreed to a number of conditions, including that I keep the contents of the report confidential and that I acknowledged that TRSA would maintain its claims of legal professional privilege in relation to the entire report. Of course, I reserved the right to disclose the document to the police if that were appropriate.

Following my reading of the report, I immediately forwarded the report to the Crown Solicitor's Office on the morning of Friday 6 March for advice. In particular, I obtained advice as to whether the full report, or parts of the report, should be referred to SAPOL for consideration in order to determine whether there were any matters that warranted further investigation. I also obtained advice on the appropriateness of tabling the report in parliament. Acting on this advice, and in line with previous undertakings I had been given, I immediately referred the report that day to SAPOL.

On 18 March, the Acting Commissioner of Police wrote to me advising that SAPOL intended to pursue the investigation of alleged offences, under the Criminal Law Consolidation Act and the Associations Incorporation Act, through the establishment of a task force involving officers from SAPOL and the Office of Consumer and Business Affairs.

On Friday 20 March, the board of the South Australian Jockey Club accepted TRSA's recommendations arising from the Lipman Karas review. The TRSA board made a series of recommendations that have been accepted by the SAJC. They included:

the termination of the employment of SAJC Chief Executive Officer, Steve Ploubidis;

the resignation of the current SAJC board and the election of a new board;

the process for confirming the eligibility of members to vote at a fresh election;

the conduct of a fresh election and the calling of nominations;

agreement that the State Electoral Commission conduct the next SAJC election; and

that the Chairman of the SAJC, John Naffine, and Deputy Chairman, Travis McLeay, not stand at the forthcoming elections.

The Lipman Karas report has been referred to SAPOL for investigation. The matters raised in the report are now the subject of police and Office of Consumer and Business Affairs investigations. Release of the report may prejudice those investigations and any proceedings that may flow from those investigations. The police have recommended against the release of the report.

In a minute dated 19 March 2009, Acting Deputy Commissioner Mr Graeme Barton stated the following:

I advise that SAPOL is of the view that tabling in parliament of the Lipman Karas report into the South Australian Jockey Club would potentially compromise current investigations being conducted by the joint taskforce, comprising SAPOL and the Office of Consumer and Business Affairs, and any future prosecution proceedings. For these reasons, it is recommended that the report not be tabled until the investigations are complete.

Apart from respecting TRSA's own interest in maintaining legal professional privilege, to table a document over which TRSA continues to maintain such privilege would not be appropriate on my part. To publish the report would involve disclosing personal information—

Members interjecting:

The SPEAKER: Order!

The Hon. M.J. WRIGHT: —and would be an invasion of privacy and unfair to the persons named within it—from the point of view of any criminal charges being laid in the future but also for the persons who are totally innocent of any criminal or inappropriate conduct themselves but were merely third parties in events allegedly arranged or instigated by others.

Aside from issues of fairness, privacy and the disclosure of personal information, the findings of fact made in the report have not yet been fully investigated or tested in proceedings.

I am informed that under the government's own Information Privacy Principles, the entire report contains personal information, the disclosure of which, I am told, would contravene these privacy principles.

Given that the report is already with SAPOL and the Independent Gambling Authority, the public interest in accountability of having appropriate bodies investigate and take action has been satisfied.

The formation of the joint taskforce and the commencement of investigations is the most appropriate way of ensuring these allegations are fully and transparently investigated. I have full confidence that SAPOL and OCBA will carry out their investigations thoroughly and in their usual professional manner. Therefore, on advice, I do not intend to table the Lipman Karas report in parliament.

While this has been a very unfortunate and difficult time for the thoroughbred racing industry, it is now time to move forward. Fresh elections overseen by the Electoral Commissioner provide an opportunity for a fresh start.

A new board and a new CEO overseeing the regeneration of a much more controlled and professional business will allow members, stakeholders and the industry in general to look forward to a very positive future for the SAJC and thoroughbred racing.

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