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    Tattersall's deal broke rules, says report
    Article from: Herald Sun



    Michael Warner

    May 09, 2008 12:00am

    CONTROVERSIAL Tattersall's lobbyist David White was offered a $350,000 success fee on the basis he would undertake activities "above and beyond" his consultancy role, a damning report has found.

    The report into the State Government's alleged mishandling of last year's lottery licence tender process, found Mr White -- a former Labor minister -- entered into an agreement with Tatts at a time when tender rules strictly prohibited such activities.

    The Upper House select committee report said its finding was contrary to evidence provided by Mr White in a parliamentary grilling last September.

    It also confirmed powerful lobby group Hawker Britton, where Mr White was a director, received access to a piece of government information before its public release.

    "This places in doubt the probity of the process as this breach of the tender process rules was never investigated," the report concludes.

    Mr White was accused of, but strongly denied, running a smear campaign against Tatts' rival for the lottery licence, Greek gambling giant Intralot. But the cross-party committee, which tabled its final report in State Parliament yesterday, delivered an open finding, citing insufficient evidence to prove allegations of improper conduct by the Government, Tatts or Hawker Britton.

    However, it was highly critical of the Government for failing to provide crucial documents for analysis.

    The committee was formed in February last year after a series of Herald Sun revelations about the behind-the-scenes activities of Mr White.

    Yesterday's report confirmed that former premier Steve Bracks secretly dined with Mr White in Lorne in December 2003.

    But the committee said Mr Bracks' refusal to appear before the inquiry inhibited its investigation into what was discussed.

    "The committee can reach no definitive consensus as to what transpired at the dinner," the report said.

    During his appearance before the committee, Mr White claimed to have shredded all personal notes relating to his seven-year involvement with Tattersall's.

    He categorically denied any impropriety over his dealings with the Government on poker machine and lottery licences.

    But the committee also heard from former Tattersall's trustee Peter Kerr, who said Mr White's subsequent report of the Lorne meeting with Mr Bracks was the "blockbuster" development that led Tatts to float on the share market.

    Mr Kerr said Mr Bracks freely discussed gambling licences at another meeting in the Tatts boardroom in February 2003.

    Mr Bracks has denied ever speaking to Tatts about licences but the committee yesterday said he probably did.
 
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