Last-minute millions to spark racing probe

QUESTIONS: Former treasurer Andrew Fraser, and how The Courier-Mail has broken the key stories into the administration of Racing Queensland. Source: The Courier-Mail

A DECISION by Anna Bligh's government to transfer $20 million two days before the Labor administration went into caretaker mode is among events set to spark a commission of inquiry into Queensland's racing industry.

The Courier-Mail has learnt of two key incidents involving more than $100 million that have raised serious questions about the former administration of the racing industry.

The Courier-Mail last night learnt that the Newman Government was investigating former Treasurer Andrew Fraser's decision to approve the transfer of $20 million into Racing Queensland Limited's trust account for infrastructure projects.

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The Government is seeking details on whether Mr Fraser ignored advice from Treasury on the business cases for RQL infrastructure projects.

The transfer occurred in February 2012, two days before the caretaker mode applied ahead of Labor's landslide election loss.

The Newman Government is also looking into a decision by four of RQL's then five directors to allow Tatts Group to retain almost $90 million of fees that had been earmarked for the racing industry.

The latest twist comes as Campbell Newman's Government ponders its options in addressing the growing scandal surrounding the industry's previous leadership.

QUESTIONS: ALP powerbroker Bill Ludwig and how The Courier-Mail has broken the key stories into the administration of Racing Queensland.

The Courier-Mail understands the government is looking at either a full Commission of Inquiry or a Parliamentary Inquiry into the administration of the industry under the board chaired by Labor-aligned former chairman Bob Bentley and including Labor powerbroker and longtime union boss Bill Ludwig.

The Government is expected to lean towards a commission of inquiry which would have greater powers.

One of the key matters is the process used for approving the $20 million payment and whether questions had been raised by Treasury officials over whether it should go ahead.

Rules blocking access to briefing papers provided to the previous government is hampering their investigation.

Mr Fraser last night told The Courier-Mail: "The decision to provide the money to (RQL) was announced in the Budget and all decisions were made in accordance with Treasury advice."

Today, he urged the release of a briefing note which he says make legitimate the$20 million transfer two days before the government went into caretaker mode last year.

Last November, The Courier-Mail revealed that RQL had awarded $158 million worth of contracts to Contour Consulting Engineers, based on the Sunshine Coast, for upgrades to regional racetracks and facilities. Only one of more than 30 projects went to tender.

But the Newman Government, less than a month into its tenure, brought the program to a halt by imposing a freeze on Racing Queensland making payments above $20,000 without approval.

A forensic audit by Deloitte Touche Tohmatsu, delivered to the Government this week, has recommended the Crime and Misconduct Commission and the State Auditor-General conduct a full inquiry into the contract, which was found to be up to 40 per cent more expensive than those offered by other firms.

The Bentley-led board was overhauled and replaced as the Newman Government sought to implement a new racing structure.

Investigations by The Courier-Mail last year have also revealed that RQL board had approved golden handshakes of more than $1 million to four executives in the event that they resigned before the body was dismantled by the new government.

That decision has been the subject of an Australian Securities and Investments Commission investigation.

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