Basketball ACT is searching for its third chief executive in less than a year following Matt Dunstan's decision to leave the role.
The Canberra Times can reveal Dunstan has told the board he will be returning to Melbourne at the end of the month for family reasons.
Dunstan started in the job just three months ago after taking the reins from Michael Haynes.
But president Allan Yates is confident the organisation will move quickly to find a suitable replacement having already started talks with a candidate.
"This is a situation where it was for family reasons and we fully respect that," Yates said. "We think Matt has done some very good things for the association in his short time and brought a level of expertise we didn't have.
"So while we're sad to see him go, we understand completely. We're already talking to some people we believe can fill that role and we're confident we can fill it pretty quickly."
News of Dunstan's departure emerged after Basketball ACT said it had finished its investigation into alleged racial abuse directed at one of its week-night players.
Richard Allan said he was the target of racist taunts last month and referees laughed when he alleged an opponent called him a "petrol sniffer" and a "dirty Abo".
There has been confusion about whether an official complaint was lodged after Basketball ACT said it did not receive a report until Allan's father took to social media to voice his frustration and disappointment.
Basketball ACT says it is taking no action against a person or team after its investigation.
It's understood news the investigation was complete came as a shock to some of the parties involved, who have been angered by what they felt was an inadequate process.
Allan has said he has been targeted by racist taunts on more than one occasions during Canberra club games.
Basketball ACT says it will not pursue the matter any further and Dunstan hoped the good to come of the situation is it has put a spotlight on stamping out racism.
"This is an allegation and there doesn't appear to be the situation that was portrayed," Dunstan said. "We've been working with both Richard Allans, father and son, and have had some positive conversations.
"What this has done is created further opportunities for us, as a sport, and for the wider community. I'm looking forward to seeing those things come out because they're going to be positive for the whole community."
Basketball ACT have advised players and officials on the member protection policy, which details processes to follow if they experience or witness racism and other behaviours that doesn't meet the code of conduct.
The organisation will also host an awareness session for the community to discuss and learn about racism.
"Through our conversations with Richie Allen Senior, we've got some good events and opportunities moving forward," Dunstan said.
"There's a wider issue that needs to be addressed and it goes far beyond the court. We need to look at ourselves, be aware of what we're doing and act appropriately."
Amnesty International Australia offered Basketball ACT access to its online cultural competency training resources as well as five double passes for referees to attend a session of The Australian Dream.
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Basketball ACT were "disappointed with their feedback" and rejected the offer, but offered to form a partnership for their cultural awareness meeting.
"I felt they were doing the same thing to us that we were accused of doing; stereotyping and putting people in a box," Dunstan said.
"This is an allegation against one referee and what they've done is stereotype 400 referees, which has a negative impact on them.
"I invited them to partner up with us for our awareness meeting but I haven't had a response to that."
Dunstan's exit and the racism controversy has overshadowed a basketball boom in the capital, with the Australian Opals to play against China at the AIS Arena next week.
The Canberra Capitals are the defending WNBL champions and will start their season next month, while WNBL officials have also decided to launch their season in Canberra for the first time.
The Illawarra Hawks will play at least one NBL game in Canberra on November 3 and the club is hopeful of playing another match in the capital against Perth on January 10.