Tag Archives: Gambling compliance

Department of Internal Affairs (DIA) – CULPABLE #pokierorts

● The Trusts Charitable Foundation (TTCF Inc) ● The Trusts Community Foundation Ltd (TTCF Ltd) ● Otago Rugby Football Union (ORFU) ● Professional Rugby ● Centre of Excellence for Amateur Sport ● Harness Racing ● Department of Internal Affairs (DIA) ● Gambling Commission ● Pokies ● Rorts ● Organised Crime ● Serious Fraud ● Political Interference

### ODT Online Fri, 26 Oct 2012
Trust audit labelled ‘a white wash’
By Hamish McNeilly
[Whistleblower Martin Legge] says an Internal Affairs audit is a “whitewash” after it failed to act on his material involving the Otago Rugby Football Union, South Auckland bars and a pokie trust.[…]An audit of The Trusts Community Foundation Ltd (TTCFL) was released last week under the Official Information Act. Earlier this year, the ODT reported the union had bought three Auckland-based bars and entered a relationship with the pokies trust, then called The Trusts Charitable Foundation (TTCF).

“At each change of ownership, it was looked at, and there was no evidence of illegality, and we had no reason to not approve the changes,” the [DIA] audit noted.

Mr Legge alleges that relationship – concerning the ownership of the South Auckland bars known as the “Jokers Group” – resulted in the union receiving more than $6 million in pokie grants from the trust between 2005 and 2011.
The Internal Affairs audit, which covers the period April 1, 2010, to January 31 this year, noted “the Department has undertaken a number of separate investigations into ‘Jokers Group’ and its ownership company over the years”.

ORFU general manager Richard Kinley said he could not comment because the audit concerned an earlier administration, and he had not read the released audit.

The audit also examined three Jokers Group grants given to the ORFU from the trust totalling $379,767 in approved payments. They were found to be compliant.
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Posted by Elizabeth Kerr

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DIA’s political cover-up of TTCF and ORFU rorts

● The Trusts Charitable Foundation (TTCF Inc) ● The Trusts Community Foundation Ltd (TTCF Ltd) ● Otago Rugby Football Union (ORFU) ● Professional Rugby ● Centre of Excellence for Amateur Sport ● Harness Racing ● Department of Internal Affairs (DIA) ● Gambling Commission ● Pokies ● Rorts ● Organised Crime ● Serious Fraud ● Political Interference

“In the course of finalising the recovery package for the Otago Rugby Football Union, the NZRU became aware of potential issues relating to funds obtained by the union from gaming trusts,” public affairs general manager Nick Brown said.

### ODT Online Mon, 27 Aug 2012
ORFU pokie papers withheld
By Hamish McNeilly
Confidential documents relating to the Otago Rugby Football Union’s involvement with pokies are being withheld by the Department of Internal Affairs. The department declined an Official Information Act request to release the New Zealand Rugby Union-supplied documents on the grounds it “would be likely to prejudice the supply of similar information”. The Otago Daily Times has lodged a complaint with the Office of the Ombudsmen seeking the release of the information, citing public interest.
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See related comments and discussion at Keeping ORFU sweet [email]

Posted by Elizabeth Kerr

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Martin Legge releases emails to Dunedin community #ORFU

● The Trusts Charitable Foundation (TTCF Inc) ● The Trusts Community Foundation Ltd (TTCF Ltd) ● Otago Rugby Football Union (ORFU) ● Professional Rugby ● Centre of Excellence for Amateur Sport ● Harness Racing ● Department of Internal Affairs (DIA) ● Gambling Commission ● Pokies ● Rorts ● Organised Crime ● Serious Fraud ● Political Interference

Comment received.

Martin Legge
Submitted on 2012/08/22 at 9:58 pm

I am very concerned about what Gambling Director, Maarten Quivooy is representing to the Dunedin Community.

Mr Quivooy claims to have no jurisdiction to investigate ORFU and the Centre of Excellence. He is playing you for fools – making you all believe that those two groups were your standard grant applicants just like Plunket, a local Kindergarten or some other worthy community group entitled to apply to TTCF for grants. Nothing is further from the truth.

The DIA have over many years, spent countless investigation hours, watching the abnormal money flow from South Auckland to Otago, always trying to prove ORFU’s interest in the Jokers Bars and hold those accountable. As was told to me, my testimony and documents provided the missing link for DIA.

The internal TTCF 2005 email between Hodder and the TTCF Trustees (in previous post) is pretty clear about the deal with Jokers. It refers to changes with the Jokers bars and that ORFU and Harness racing now each have a share in those bars and what each groups expectation is from the bars. There are more emails and DIA were provided with them in 2010.

This email makes it reasonably clear that ORFU did indeed have an “ownership” or “interest” in Jokers but it now seems DIA are the only ones who chose to ignore their previous concerns. Why you may ask?

Because any proof of “ownership” or “interest” in the Jokers pokie bars significantly changes things – it elevates ORFU into the legal definition of being a class 4 Venue Operator, over which DIA does have jurisdiction and a statutory obligation to act.

Even if TTCF Inc and Centre of Excellence no longer exist as entities it does not prevent DIA from holding TTCF’s Trustees to account for allowing what has occurred.
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Related Post and Comments:
15.8.12 Keeping ORFU sweet [email]

Posted by Elizabeth Kerr

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Keeping ORFU sweet [email]

● The Trusts Charitable Foundation (TTCF Inc) ● The Trusts Community Foundation Ltd (TTCF Ltd) ● Otago Rugby Football Union (ORFU) ● Professional Rugby ● Centre of Excellence for Amateur Sport ● Harness Racing ● Department of Internal Affairs (DIA) ● Gambling Commission ● Pokies ● Rorts ● Organised Crime ● Serious Fraud ● Political Interference

Comment received.

Martin Legge
Submitted on 2012/08/15 at 4:35 pm

Below is an email dated June 2005 between TTCF Inc’s General Manager, Warwick Hodder, and the TTCF Trustees. It is one of many documents I was asked to provide DIA along with my 30-page signed statement shortly before Politicians intervened for TTCF and the truth became inconvenient.

Since then DIA have continued to give the public a list of reasons why they can’t act which include – the Gambling Act has a 2-year time frame for prosecution and TTCF Inc no longer exists as an entity.

Firstly, there are no such time frames for taking historical matters to the Gambling Commission or cancelling and suspending a gaming licence.

Secondly, DIA allowed TTCF Inc to remorph itself into TTCF Ltd and in doing so also allowed it to transfer all its pokie pubs which included Jokers Manurewa, the last remaining Jokers venue controlled by ORFU, over to the new entity TTCF Ltd.

So even under TTCF Ltd the unlawful arrangements and a further $800,000 was fleeced from the poorest part of South Auckland into the ORFU. It only stopped when Jokers Manurewa was closed down for commercial reasons.

So you see, DIA still have a 2-year window of opportunity in which to prosecute TTCF Ltd and until June 2013 to do it.

From: Warwick Hodder [mailto:WarwickHodder@xtra.co.nz]
Sent: Tuesday, 28 June 2005 12:00 p.m.
To: Doug Burt; John Wyeth; Murray Acklin; Roger Smaill; Ron Turner (Home); Ross Dallow; Tom Jones
Cc: Modus Group
Subject: JOKERS VENUES

Dear All

There have been some significant developments regarding the ownership of the Jokers venues, to the extent that those now in control have extensive racing (mainly harness) interests. All this has been done between ORFU and Harness so the Union has been in the loop. There are some risks for TTCF Trustees and Modus Group that need to be addressed and I guess if the frying pan gets too hot then we may have to be prepared to walk away from these venues. I do not think it has become quite that drastic but it would be unfair of me not to fully acquaint you of developments. For the time being the current Directors will remain in place but that will change in months to come when financial matters have all been officially dealt with. I am not party to exactly what these arrangements are but have been assured that the current Directors will sign a 3 year venue agreement and we will be officially notified of any changes when they happen and all appropriate forms and other paperwork will be submitted to us for actioning with DIA.

The new owners intend to emulate what the racing codes are already doing in relation to the TAB funds i.e. submitting a quarterly schedule of grants to go to racing.

Their expectation is that racing will receive $2.6m in a year. ORFU are still expecting up to $1m a year and there is supposedly going to be at least 20% available to the rest of the community, which I am guessing is approximately another $1m per year. Extrapolating these expectations out to a turnover figure, using a 45% return to A/P as a means of doing so, basically these venues need to be doing $10m a year, which is what they were doing when they first joined the fray. But things have changed slightly, partly due to a reduction in turnover at Commerce St because the new owners did not work the place as hard as previous management did.

There are two issues that I am uncomfortable with and we need to deal with them sooner rather than later i.e.

1. I am not sure that there will be enough money to make things work for all parties, especially the community

2. The current authorised purpose statement is inadequate to cope with these sorts of initiatives

I have asked their representative to meet with me again today to discuss some more realistic expectations. I suspect they have budgeted for Commerce where it used to be not where it is now. They have moved the operation to a 24 hr one again and so it will certainly improve but whether it meets their expectations is another matter.

We need to probably discuss this whole matter in committee at the upcoming Board meeting.

Warm regards

Warwick Hodder

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DIA reshuffle: new investigation teams, money laundering, criticism

### stuff.co.nz Last updated 05:00 12/08/2012
The money detectives take on casinos
By Steve Kilgallon – Sunday Star Times
A specialist casino investigations team is targeting offshore gamblers pumping millions through casinos on flying visits to New Zealand. The team is part of a major reshuffle at Internal Affairs, which is also establishing a major investigations team tasked with prosecuting sophisticated poker machine frauds, an area where it has faced major recent criticism. DIA staff and Internal Affairs Minister Chris Tremain have been briefed on the changes in the past few days. The casino team will be told its priority is potential money-laundering.

“There are some examples of people being in New Zealand for a relatively short period of time and putting quite a lot of money through the casino,” said Maarten Quivooy, Internal Affairs’ general manager of regulatory and compliance operations. “We are not saying that’s necessarily anything illegal, but it does raise the question ‘what do we know about these things?’

Internal Affairs’ other new team will be called the regulatory investigations team, which will be given extra support, work under Quivooy’s direct command and be told to chase “serious, wilful, deliberate, harmful” offenders.

The department has been heavily criticised in recent years for failing to prosecute alleged pokie rorts. But Quivooy denied the move was a response to that or an acknowledgement of any failings. “We are not doing this to placate people, we are doing it because it is the right thing to do.”

But Internal Affairs critic Martin Legge, a former gambling inspector and later industry whistleblower, said the changes were “akin to rearranging the deckchairs on the Titanic” and a “deliberate and cynical ploy to deflect attention from their spectacular failure in regulating the pokie industry and stopping the rorts”. Legge said Internal Affairs already had a Serious Investigation Unit which had achieved little and he believed the department lacked the “culture, skills and fortitude” to legally outwit rogue trusts.
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