Newman backs racing inquiry to call Bligh

A series of Labor powerbrokers, including former premier Anna Bligh, could be called to front a Commission of Inquiry into the operation of Queensland's racing industry. Source: The Courier-Mail

QUEENSLAND'S racing industry will be investigated by a Commission of Inquiry that is expected to call on a group of former Labor powerbrokers, including ex-premier Anna Bligh.

Premier Campbell Newman told reporters this morning at Parliament House he supports the inquiry.

"We continue to see these allegations of misspending of tax-payer funds and we also hear stories in the media about a failure of process in giving contracts, and there have been many complaints that have directly been made to members of government," he said.

However, he did not indicate who he thinks should be called before the inquiry, saying it was a matter for the Commission of Audit to decide should they agree to establish one today.

"It remains to be seen what happens," he said. 

Attorney-General Jarrod Bleijie will today formally recommend the inquiry to Cabinet following a series of stories in The Courier-Mail raising questions about decisions worth more than $200 million taken within the racing industry.

The newspaper's stories have focused on the former Racing Queensland Limited regime led by chairman Bob Bentley and a board of directors including Labor powerbroker Bill Ludwig. RQL reported to a series of ministers over the reign of the Beattie and Bligh governments.

Mr Bleijie said the Newman Government had also received numerous allegations.

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Former Queensland Racing director Bill Andrews is calling for a judicial inquiry into the industry. Picture: Adam Smith

"The Newman Government has been inundated with allegations in the past few weeks that have convinced me a full inquiry into the industry is necessary," Mr Bleijie said.

"I am concerned taxpayers' and racing industry money may have been squandered by the previous racing administration under the Labor Government. I am concerned about the lack of appropriate processes in awarding contracts in the racing industry.

"For example, there are allegations one company was awarded 37 contracts, of which only one went to tender."

The wide-ranging inquiry is expected to examine RQL's actions and the interaction with relevant Cabinet ministers during a series of controversial decisions including:

• A $20 million transfer of taxpayer funds to RQL's infrastructure trust account in the final days before the dying Labor government went into caretaker mode.
• Funding deeds between RQL and the Government for more than $60 million of works in key Labor electorates in the month before the 2012 election.
• RQL's award of more than 30 contacts to Sunshine Coast engineering firm Contour Consulting, most without a tender. RQL has said they were awarded because Contour was a preferred, specialist contractor.
• Contractual payouts given to senior staff who resigned within days of the 2012 election. Two of those staff immediately went to jobs at Contour Consulting.
• The decision by Queensland Race Product Co - a non-profit subsidiary of RQL - to authorise almost $100 million worth of deductions for agency costs by gaming giant Tatts Group, against subsequent RQL legal advice.

Former RQL director Bill Andrews last week called for an inquiry, labelling the Product Co decision a "disgrace" that involved a "hell of a lot of money".

Racing Minister Steve Dickson said he strongly supports the inquiry, which is expected to include cross examinations under oath of key figures within the industry and the former government.

This could include any conversations or direction given by Anna Bligh about the industry in her role as premier.

"The racing industry is vital to the Queensland economy; we need to know what has gone on under the former Government and former industry bosses," Mr Dickson said.

"Questions need to be answered, allegations need to be brought to light."

He said the government has worked hard to clean up racing in Queensland and wanted an industry the state could be proud of - one that was open, transparent and accountable.

"The integrity of Queensland's 30,000 strong racing industry is paramount," he said. "This inquiry is about ensuring the longevity of the racing industry and ensuring it is an industry Queenslanders can trust."

Further details including sitting dates and who will head the inquiry are expected to be announced in the weeks ahead.

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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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