Cover image courtesy of Australian Turf Club
With just a week until the parties return to court for the long-foreshadowed December hearing, Racing NSW has issued a fresh request for information into the Australian Turf Club’s catering operations, alleging theft and broader fraudulent conduct across its hospitality arm.
That move forced both sides back before Justice Kunc on Thursday, seeking to resolve the latest flashpoint in their escalating legal battle.
Internal investigation
The ATC won an injunction in December to postpone Racing NSW placing the club under administration, pending a full court case to be held at the end of next week, but in early February, the principal racing authority has found another route to demand more information from the club.
In a letter sent by Racing NSW to the ATC last week, the regulator demanded that the club hand over information about their hospitality business, and has subsequently submitted an information request under section 29B of the Thoroughbred Racing Act 1996: “requiring the club to provide specified documents or furnish specified information to Racing NSW within a time specified in the direction, being documents or information that Racing NSW considers will be of assistance in connection with the exercise of its functions”.
Under section 29C, Racing NSW can impose sanctions on the club if they fail to comply with the direction - which could include a financial penalty or cancelling the club’s registration itself. It cannot do so without written notice to the club and if the club is able to prove they have reasonable grounds for not complying.
According to the Australian Financial Review, the regulator had received a tip-off that the club’s hospitality staff had been interviewed as part of an investigation into alleged theft, including alcohol from venue cool rooms, at club facilities.
The matter returned to court as the ATC sought a legal injunction against Racing NSW’s use of the Act, asserting that the Act can only be used for racing matters, and did not encompass the club’s hospitality business.
The ATC’s legal counsel, Scott Robertson, elaborated that the club was “very concerned” about how revenue compared to expenditure on goods, but that the investigation is being handled by the ATC.
Hospitality at the Australian Turf Club | Image courtesy of the ATC
Complete U-turn
In response, Racing NSW’s counsel Michael Henry said that the matter extended beyond the catering business, and into areas that were the PRA’s purview.
“The issue that’s arisen and the request for information has not been prompted by catering – it’s been prompted by the possibility of fraudulent activity within the ATC’s hospitality section, which was occurring under their noses and they’re now investigating,” Henry said.
“Where we are, is there’s an investigation into serious fraudulent activity that could not seriously be described or compartmentalised as confined to catering and what we want to do is understand the extent and breadth of it and the reasons behind it and who’s done what.”
Despite those comments, Henry submitted an undertaking that Racing NSW won’t issue a formal demand for information until the case is heard next week, which was accepted by Justice Kunc.
ATC’s legal counsel, Scott Robertson, told the court that Racing NSW’s undertaking was “a complete U-turn” from the correspondence the regulator had sent him and the ATC the day before the hearing.
The hearing over whether or not Racing NSW can place the club into administration will begin next Thursday, February 19.
