Members of Queensland’s wealthiest horse racing club are demanding transparency following revelations that its former chairman, Neville Bell, engaged in a lucrative arrangement with the developer of a luxury residential project. This deal occurred while Bell had oversight of the $850 million development.
The controversy centers around Bell’s receipt of over $50,000 annually in rental income from Mirvac, a property giant, for the use of his trackside apartment as a display suite. This information came to light during a recent Annual General Meeting, sparking allegations of a “conflict of interest” and questions about whether the club had “foregone regular income for the benefit of the former board member.”
While there is no suggestion of illegal activity by Bell, he maintains that he acted in the club’s best interests, complying with all relevant laws. The Brisbane Racing Club (BRC) asserts that it adhered to corporate governance requirements at all times.
Governance Under the Microscope
The historic race club is also under fire for broader issues of integrity and transparency. ABC Investigations has revealed that complaints regarding alleged governance failures and misconduct have been lodged with Racing Queensland, the Minister for Racing, and the Crime and Corruption Commission (CCC).
This scrutiny coincides with the Crisafulli government’s announcement of a significant public funding commitment to replace the club’s aging grandstand, a project estimated to cost at least $100 million.
Members in the Dark
Neville Bell, who led the Brisbane Racing Club for 12 years, was praised upon his retirement for his transformative impact on the club. His tenure included a $1.5 billion master plan to redevelop Brisbane’s Eagle Farm Racecourse into a resort-style residential complex known as Ascot Green.
In 2015, Bell announced Mirvac as the BRC’s joint venture partner for the project. Since then, he has been closely involved with the developer, serving as chairman of the club’s master plan subcommittee and a member of its project controls group.
The revelation about Bell’s rental income from Mirvac emerged at the AGM, with members questioning the lack of disclosure in the club’s annual report. The BRC board admitted that the arrangement was independent of the club at the time.
Expert Opinions on Transparency
ABC Investigations consulted several experts on the matter. A forensic partner at a boutique advisory firm emphasized,
“Transparency is absolutely fundamental — what isn’t disclosed can be twice as harmful as what is.”
A lawyer specializing in regulatory investigations questioned the club’s transparency, noting that the BRC had a policy allowing directors to purchase properties from its joint venture with Mirvac. The lawyer stated,
“Given what is disclosed about those circumstances, I think omitting this arrangement and the benefit received [by the chairman] is arguably misleading.”
Additionally, a partner at a mid-tier accounting firm advised,
“Good governance means taking proactive steps to be transparent and accountable. Waiting for these issues to be discussed at an AGM is very late in the piece and may reflect poorly on corporate culture.”
Broader Governance Concerns
Beyond Bell’s rental income, members raised concerns at the AGM about the board’s spending on travel and entertainment, which exceeded $150,000 last year. Questions were also posed about a termination payout to a former BRC property executive.
Former BRC CEO Tony Partridge’s abrupt departure last year remains contentious. Partridge, who reportedly demanded an investigation into governance issues before leaving, signed a non-disclosure agreement, silencing him on the matter.
Racing Queensland’s Role
Approximately 80 people attended the AGM, including senior executives from Racing Queensland. While the control body has the authority to license, audit, and investigate complaints, it has not confirmed any investigations into the BRC’s financial dealings.
Queensland’s Minister for Racing, Tim Mander, has not commented on whether an independent investigation will be directed. However, a spokesperson stated,
“The department takes allegations seriously and has encouraged the individuals to provide relevant information to ASIC or the CCC.”
Path Forward for the BRC
A landmark report into Queensland’s racing industry has recommended reforms to enhance integrity and governance. These include prohibiting related party transactions without prior approval from Racing Queensland and tightening rules on club travel and spending.
The Brisbane Racing Club faces a challenging period as it navigates these governance issues and implements recommended changes. The club’s ability to restore member trust and maintain its reputation will be critical in the coming months.
