SAJC--report of inquiry into suitability of close associates - Portellos ...

Inquiry into the suitability of certain close associates of the
South Australian Jockey Club
Report
had not been provided with the contract, had not discussed the terms of the contract
and had not approved the contract.
Mr Naffine was asked about activities to attract young SAJC members in September
and October 2008. He told the Authority that, at the August 2008 board meeting, it
had been noted that the number of members had been static at 1700 for twelve months
and that the young SAJC membership had not been growing. Mr Naffine recalled that
it was resolved that the board had to take further action to grow the membership. Mr
Naffine then indicated that he determined personally to do something about it:
The following week I met with some young people at my works and some young friends of
mine, a couple of young lawyer friends and I said “Right-oh I want to get some young
members. I’m in a position to sponsor them. If you know anyone who would like to join I’d be
pleased to assist.” And I did and I submitted—I had in mind around about 20 and in the end
there were 27 forms completed not by myself or anything like that; it was done absolutely
correctly with a view to gaining new members. They joined willingly. Their forms were put
in, and I paid for them myself.
Mr Naffine stated that that was his sole involvement in a recruitment drive. He noted
that the number of persons proposed for membership at the September and October
meetings was large, although larger than normal numbers are proposed in those
months as a matter of course.
Mr Naffine agreed that natural growth in membership at the start of the racing year
and the price incentive concerning the Melbourne Cup could account for some of the
memberships but not all. He told the Authority that no explanation was provided as to
how these new young SAJC members were attracted—he assumed that marketing
undertaken by staff of the SAJC in October had been successful.
Upon noting the unusually large number of proposed members, Mr Naffine sought
confirmation from the CEO that all memberships had been paid for and this was
given.
When asked whether, at the time, Mr Naffine had found the number to be unusual, Mr
Naffine agreed.
On being directed to a table in the Lipman Karas Report which indicated that 161
memberships had been paid for on credit cards belonging to SAJC vice chairman
Travis McLeay, Mr Naffine expressed surprise and doubt that Mr McLeay would join
that number of members personally. Mr Naffine postulated an innocent explanation
for Mr McLeay’s cards being used to make payments for others, but agreed that it
would be fair to note this as unusual.
When asked whether he felt that the CEO, Mr Ploubidis, in confirming that all of the
memberships had been paid for, should have volunteered that more than half had been
paid for from a single source, he was non-committal. He did express the view that, at
the time of examination, he wished Mr Ploubidis had been more forthcoming.
Mr Naffine was asked to comment on some data analysis undertaken by Lipman
Karas which indicated that only a small number of the newly recruited members had
attended the races. Mr Naffine did not agree that, within the time frame of the
analysis, this necessarily showed that the recruitment activities had been unsuccessful.
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