Economy
Inquiry call into Tote fiasco
There are calls for a Royal Commission into Tote Tasmania.
The call has been prompted by revelations the State Government could be exposed to a multi million dollar damages claim because of Tote’s investment in a failed online betting agency, before its sale to the Melbourne-based Tatts group earlier this year for $103 million.
In 2009, the then state-owned agency invested $5 million the online bookmaker, Sports Alive, which later collapsed, owing millions.
The liquidator is now considering legal options to recover the losses and while Tote’s employees and its new owner the Tatts Group have indemnity, the liquidator’s lawyer says the State Government could be open to claims.
The Shadow Treasurer Peter Gutwein says the government has some explaining to do.
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The Greens’ Kim Booth says it raises questions about TOTE’s management at the time.
Terry Clarke was the head of TOTE Tasmania until 2007 and says there needs to be a high level inquiry into the government-owned enterprise over the past four years and why it was sold.
“We need to have a Royal Commission into this,” said Mr Clarke.
• TREASURER DODGING QUESTIONS ON SPORTS ALIVE INVESTMENT
Kim Booth MP
Greens Racing Spokesperson
The Tasmanian Greens today said the Tasmanian public was being kept in the dark about what advice the Treasurer received before the decision was made for TOTE Tasmania to risk public money in the insolvent betting company Sports Alive.
Greens Racing spokesperson Kim Booth MP said that the Treasurer had failed to answer questions in Parliament today about the advice behind the decision to squander millions of dollars of public money on an already insolvent, failed business enterprise.
“The fact that TOTE Tasmania took a stake in a business that was possibly insolvent at the time, combined with the now real concern that the Tasmanian taxpayer could be exposed to up to $14 million of liability raises very serious questions about the reliability of Treasury advice and the competence of those involved including the then-Treasurer and the TOTE Board,” Mr Booth said.
“It’s still not clear on what date the Treasurer became aware of the decision to invest, nor what Treasury advice was given prior to the money being handed over. Surely it wouldn’t prejudice the case before the courts to provide this basic information.”
“It’s also not clear if the buck now stops with the TOTE Tasmania Board, or with the State with regard to potential financial liability for this appalling lack of Ministerial oversight of this investment decision.”
“There are so many unanswered questions here, and the public have a right to know exactly what went into this appalling decision to invest public money in a failed enterprise.”
“All this raises serious questions about whether government business enterprises should be involved in risky offshore adventures that expose the public purse to serious financial risk, or should they focus on their core business.”
“Recently we have seen three agencies under the stewardship of either the Treasurer or Minister Green which seem to be either rogue or going rogue, Forestry Tasmania, TOTE, and also Hydro with their risky Bakun dam involvement,” Mr Booth said.