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

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Inquiry into the suitability of certain close associates of the South Australian Jockey Club Report impact of anything which had been said would have been affected by an unrelated experience of Mr Le Poidevin being assaulted by a person involved in a child support matter, and also possibly by the knowledge that Mr Ploubidis had apparently been undertaking background research on his legal business. 4.2.10 Ken Smith Mr Kenneth Ross Smith AM told the Authority that he was a member of the SAJC and had been declared elected to the board in the elections completed on 13 May 2009. He identified an election statement posted on the website of the SAJC and adopted it as his. He told the Authority that he was a dairy farmer and company director. Mr Smith was asked about the process for validation of the memberships voted on at the October 2008 board meeting. He told the Authority that he had had no involvement in that process. Mr Smith was asked about the Rob Gerard letter. He told the Authority that he had had no foreknowledge of or involvement in the letter. When asked about the letter, he said: I thought at the time that, whilst maybe Rob Gerard was trying to say, “Get on and make these things happen,” I’ve been a bit concerned about the relationship of Rob Gerard with one or two of the board members, and perhaps even the chairman, in the activities leading up to the November election and then perhaps this. Do you read that letter as taking a position on who should be voted for in the election?—I guess I was concerned that it was that way a bit. Who was it supporting, Mr Smith? Was it supporting you?—No, it wasn’t. Was it supporting Bill Spear?—You can pick parts out of it that he was looking to get people to vote, but I think you can read into it that it perhaps was supporting others, yes. Mr Smith told the Authority that he had developed concerns with the admission of new members in 2008 and with the conduct of that year’s election partly from things he had been told by SAJC office staff and partly from what he regarded as the extreme confidence exhibited by certain candidates and, in particular, Mr Alistair McFarlane. Mr Smith told the Authority that he had raised these concerns with the then SAJC chairman John Naffine, prior to the close of voting. He suggested to Mr Naffine that any new members’ votes should be held. He quoted Mr Naffine as then admitting to paying for two, then a dozen or more and ultimately 26 new members. He regarded Mr Naffine as being very much under the influence of then CEO Steve Ploubidis: Instead of being the chairman controlling the CEO, it was the CEO controlling the chairman, I felt. Mr Smith was asked about the Hi Maddie email and about the sending of text messages in the lead-up to the 2009 SAJC board vote. He told the Authority that he 36
Inquiry into the suitability of certain close associates of the South Australian Jockey Club Report had had no foreknowledge of or involvement in those matters. In answer to a question, he indicated that the author of the Hi Maddie email might have been inviting people to vote for a group other than the one which included him. Mr Smith related to the Authority a conversation—subsequent to the 2008 election— which served to confirm his concerns about the 2008 election. As he understood it, one of the newly admitted members was very excited to have become a member and had learned, in January 2009, that she had also voted at the 2008 election. Mr Smith was asked about ways in which his business interests were involved with the racing industry. He and his wife own approximately 20 horses; he understood that the registration, stewarding and judging and other integrity functions for racing are the responsibility of TRSA, rather than the SAJC. He agreed that it was possible that his companies might become sponsors of racing or become suppliers of dairy products to the SAJC. He demonstrated a thorough understanding of the rules concerning related party dealings and how conflicts of interest should be managed. He also displayed a clear understanding of the separate roles of TRSA and the SAJC: with the former being responsible for the racing calendar and the racing event and the latter for providing the race day facility. Mr Smith was also asked of his experiences of dealings, when he was a TRSA board member, with the SAJC as represented by Mr Ploubidis. He described frustration at TRSA being treated with contempt by the SAJC, particularly when seeking financial accountability. He described Mr Ploubidis as being a particular type of person, very clever, doing some good things but requiring a very strong board to keep him in check. He did not regard the recent SAJC boards as providing that requirement. 4.2.11 Steve Ploubidis Mr Steven Ploubidis told the Authority that he had been the CEO of the SAJC from 2001 until 2008 and that he was, at the time of the examination, unemployed. He was asked about his qualifications and employment experience. He holds a Bachelor’s degree in Education, a Master’s degree in Business Administration and a Diploma of Teaching from the University of Adelaide. He worked for 5 years as a teacher in the State system, then with the Sparr Group (establishing and managing restaurants and consulting on major events) for 11 years, another hospitality services group for 2 years and then with the South Australian National Football League (as catering operations and special projects manager) for 5 years, prior to joining the SAJC as CEO in 2001. In response to questions about the preparation he undertook for his role as CEO, he answered that had not undertaken any purpose-specific study but that some aspects of his MBA studies would have been relevant. He told the Authority that he had read the SAJC constitution but not to the point of analysing each individual item. He was aware that the position of CEO is specifically mentioned in the constitution and he 37
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