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Legislative Assembly for the ACT: 1997 Week 14 Hansard (9 December) . . Page.. 4699 ..

MRS CARNELL (continuing):

Against that background I do, however, want to signal the seriousness with which the Government views the board's findings and detail some of the specific steps that we will be taking immediately. Firstly, the finding that Mr Daniel Kolomanski, Mr Cornelius McMahon, Mr Peter Bartholomew and Mr Alan Tripp were knowingly involved in a fraud committed upon ACTTAB will be referred to the Australian Federal Police to consider whether a criminal investigation should now be undertaken.

Secondly, under the Inquiries Act the giving of false evidence to the inquiry is a serious offence for which a maximum penalty of $5,000 or imprisonment for five years may be imposed. The Government will therefore refer to the Director of Public Prosecutions Mr Burbidge's conclusions about the veracity of evidence given by Mr Daniel Kolomanski, to consider whether action should be commenced for the offence of giving false evidence.

Thirdly, I have asked the Commissioner for Public Administration to review the circumstances surrounding the employment of Mr Philip Neck, who left ACTTAB in 1994, and whether there is any scope for action to be taken either civilly or under the Public Sector Management Act. I have also asked the commissioner to consider whether disciplinary action can and should be taken against a former senior officer of ACTTAB who remains with the ACT Public Service and whose actions were criticised in the report by Mr Burbidge.

Mr Speaker, this inquiry has, to a large extent, vindicated the request by Mr Osborne that the contract between ACTTAB and VITAB be re-examined. It has also vindicated the decision by my colleagues and me when in opposition to carefully scrutinise the arrangements of VITAB and blow the whistle that ultimately led to the discovery of this scandal.

I urge all members to read this report carefully. It details how a group of businessmen, some with criminal convictions, used a former Prime Minister, a maze of corporate identities and an offshore tax haven to convince the ACT Government and its betting agency to sign a contract that has now cost Canberra taxpayers close to $5m. And it clearly establishes that, as the former Minister for Sport, Mr Berry must now accept primary responsibility for allowing the scandal to happen. As Minister, he gave the necessary approvals. As Minister, he was warned by the Opposition and the racing industry that this deal was suspicious and required far greater examination. As Minister, he was warned by the New South Wales Racing Minister to be wary of developments that were occurring in offshore betting activities. That was three days before Mr Berry announced the contract. As Minister, he ignored those warnings. He failed to act on evidence from the very outset that VITAB was not what it claimed to be. As Minister, he appointed a board to ACTTAB that was better known for its political affiliations than its expertise in racing and gambling technology. As Minister, he held the view that the VITAB deal was a good one for the ACT, that it was safe and that it was profitable, and Mr Berry was personally involved in checking it out. Those are statements from Mr Berry. Mr Speaker, the VITAB contract was a disaster. Let us hope that, aside from Mr Berry, the rest of us will never allow a mistake of this kind to happen again in Canberra.

Debate (on motion by Mr Osborne) adjourned.

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