Just days before the competition watchdog is expected to rule on the ACT government's $105 million sale of betting agency ACTTAB, the territory's Auditor-General has launched a review into the conduct of government agencies involved in the deal.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Auditor-General Maxine Cooper announced the review last week, with a report expected by the end of the year.
In July the ACT government announced the sale of the underperforming betting agency for $105.5 million in a 50-year deal with Tabcorp.
As part of the deal, subject to approval by the Australian Competition and Consumer Commission and probity checks by the Gambling and Racing Commission, Tabcorp will have 50 years as the exclusive owner of the ACT totalisator licence and receive a sports bookmaking licence for 15 years with a 50-year extension.
An ACCC spokeswoman said a provisional announcement date on the commission's decision had been set down for Thursday.
Canberra racing industry representatives and other commercial betting agencies criticised the sale process, with as many as 12 groups expressing interest but only three included on the government shortlist.
Tatts, which owns the TABs in Queensland, the Northern Territory, South Australia and Tasmania, was also shortlisted.
One industry insider in March called the sale "a sham process", as the government shortlisted only the largest industry players and required bidders to demonstrate substantial revenues.
Some representatives of corporate bookmakers said time and resources had been wasted on a process established to favour only existing TAB owners.
As the sale was being considered, the government said it was seeking a fair price, no negative impact on the racing industry, consideration for works, and a new owner with experience, financial capacity and integrity.
The sale will give Tabcorp ownership rights over Keno and Trackside betting for the 50 years. It will pay tax of 1 per cent of sports bet turnover and no tax on tote betting.
Tabcorp will also pay an annual licence fee to the government of $1 million, indexed for CPI.
The betting giant already owns the former government TABs in New South Wales and Victoria.
As the new owner, Tabcorp agreed to keep about 130 staff on current conditions for three months after the sale and offered sponsorship for the local racing industry of at least $300,000 a year for 10 years.
The company will sponsor territory community and sporting groups with at least $400,000 a year, in line with the amount from ACTTAB.
In August, opposition economic and business spokesman Brendan Smyth called for the sale to be referred to the Auditor-General for review, in line with a recommendation from the Assembly's select committee on Estimates, which he chairs.
"In regards to Mr Smyth's comments, it is not for the government to direct the Auditor-General in their actions and he should know better than to attempt to pre-empt the outcome of this independent process."
Already under pressure from the clean-up bill for Mr Fluffy asbestos homes, the ACT budget will receive a big boost from the sale. Mr Barr expects ACTTAB will qualify for the federal government's asset recycling bonus scheme, which could deliver another $16 million if approved by the Senate.
ACTTAB has 53 outlets, including shopfronts and facilities at pubs and clubs. Tabcorp has agreed to keep 20, but the government has not specified what kind.
A spokeswoman for Dr Cooper said the audit's objective was to "provide an independent opinion to the Legislative Assembly on the probity of the sale of ACTTAB."
It will focus on the conduct of the sale, including the supporting planning, administration and communication processes.
"The audit will assess whether there was appropriate consideration of bids [and] tenders received from potential buyers, including against agreed sale criteria and legislative, policy and financial requirements and considerations."
