Page 2 - Week 01 - Tuesday, 22 February 1994
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QUESTIONS WITHOUT NOTICE
ACTTAB - Contract with VITAB Ltd
MRS CARNELL: My question without notice is directed to the Minister for Sport, Mr Berry. I refer the Minister to answers he has given in this Assembly previously about the contract signed between ACTTAB and a private company registered in Vanuatu, VITAB. Will the Minister confirm media reports that ACTTAB negotiated with a Mr Peter Bartholomew on behalf of VITAB? Were any inquiries or searches conducted in relation to the directors of VITAB or the bona fides of the company? Do the ACT Government and the Minister make a habit of entering into multimillion dollar contracts with companies without vetting the bona fides of their principals or the persons it negotiates with?
MR BERRY: In late July 1993 I was briefed on the proposed ACTTAB-VITAB arrangements by the chief executive of ACTTAB at that time. I was informed that discussions were being held between Mr Dan Kolomanski and Mr Con McMahon. I understand that the officers from ACTTAB primarily involved in the negotiations with VITAB were its chief executive officer, Mr Philip Neck, the director of administration, Mr Noel Luff, and the director of marketing operations, Mr Bruce Packard. At no time did I meet with any representatives of VITAB, nor was I privy to discussions at any meeting held between ACTTAB and VITAB.
Following a briefing on the proposed VITAB agreement by the chief executive of ACTTAB, I asked that advice be sought from both the ACT Government Solicitor and ACT Treasury on the following issues: Firstly, is ACTTAB legally entitled to enter into such an agreement? Secondly, is there any possibility that the arrangements could lose ACTTAB money? Thirdly, that the bona fides of the shareholders and the directors of VITAB be established. Following detailed analysis of the draft agreement, I was given the necessary assurances that the agreement was financially beneficial to the Territory and, subject to appropriate amendments, legally acceptable to the Territory. In early September 1993 ACTTAB requested Price Waterhouse to conduct a company check of VITAB, and I am advised that the results of this check were satisfactory. Additionally, it was a requirement that a process be included in the final agreement for the clearance of current and future shareholders controlling more than 5 per cent of shares, and directors of VITAB and its management company, Gaming Management International Pty Ltd.
I am advised that on 21 January 1994 VITAB submitted to ACTTAB for its approval in accordance with the agreement a number of changes to VITAB and GMI directors - that is Gaming Management International Pty Ltd - and the shareholding. I understand that ACTTAB and its solicitors are currently in the process of carrying out the checks and approvals of the directors and shareholders in accordance with the agreement. I am advised by ACTTAB that no approvals will be given until all checks are made and proved to be satisfactory. I think that completes the big picture in response to your question.
MRS CARNELL: I have a supplementary question, Madam Speaker. Noting the national controversy generated by this contract, will the Minister now concede that the VITAB issue is of public importance and table the VITAB-ACTTAB contract and all related documents?
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