Report says venues were offered inducements

A 2007 Department of Internal Affairs investigation alleges there was an "orchestrated campaign" between a charitable trust and the TAB to secure gaming machine venues, according to a report obtained by the Otago Daily Times under the Official Information Act.

The report centres on Levin-based The Trusts Charitable Foundation trustee Murray Acklin and several TAB representatives, who allegedly approached gaming machine venues offering venue inducements to publicans if they aligned with the charitable trust.

Those inducements were claimed in the report to include free or subsidised TAB upgrades, TVs, favourable commission rates and free 2007 Rugby World Cup tickets and packages.

The report recommended legal assessment by the department's lawyers to see if there was "sufficient evidence to proceed with a prosecution under Section 118 of the Gambling Act (2003)" - which prohibits inducements.

The department did not subsequently pursue such a prosecution and, in a covering letter to the ODT, said allegations outlined in the report were not substantiated because of insufficient evidence.

It also noted in the letter that certain interviews had been deleted from the investigation report because releasing the information "would be likely to prejudice the supply of similar information from the same source, and it is in the public interest that such information should continue to be supplied".

Mr Acklin said he had not done anything wrong, had acted in good faith and reiterated that the findings in the report were unsubstantiated.

"No-one is prepared to make a statement.

I am being tried in the media."

Mr Acklin said he had worked hard to return millions to the community and "people will think I am a bloody crook ... it is the direct opposite".

The investigation report alleges he approached gaming machine venues with TAB outlets, offering a free or subsidised TAB upgrade and other benefits if the publicans changed their gaming machine operation to TTCF.

It noted venue operators were reluctant to give statements due to the "fear of losing their TAB outlets if they spoke out against the TAB".

The report stated that, off the record, venue operators "confirmed approaches had been made by Acklin", and a regional business development manager for the New Zealand Racing Board - an independent statutory body.

Internal Affairs contacted TTCF to warn it of potential offences, and a meeting took place with the chief executive of the New Zealand Racing Board, which administers the TAB.

On April 18, 2007, Internal Affairs received a reply from TTCF which revealed it ran a "very organised campaign to gather new venues and that TAB representatives have worked very closely with Acklin on this project", the report said.

As part of its investigation, Internal Affairs obtained three written confidential reports by Mr Acklin which were presented to fellow trustees, documenting the venues "who have agreed to change trusts conditional upon a TAB upgrade".

"There will be a substantial investment made by the TAB into current sites and into new sites being purchased for redevelopment, both subject to certain conditions. Gaming machines with TTCF forms part of those conditions."

In an interview included in the 2007 report, Mr Acklin denies making inducements, saying his confidential business development reports to the foundation, which appeared to suggest otherwise, were in fact "merely notes for a verbal presentation to the trustees".

Asked, in the report, about a specific inducement, he replied "if they needed an inducement we were not prepared to shift, we walk away".

The Internal Affairs investigation concluded that while witnesses wished to remain anonymous, they gave similar accounts of Mr Acklin and the TAB trying to get them to change from their current gaming society to that of TTCF.

The report says Mr Acklin's confidential business reports "clearly show an orchestrated campaign by Acklin and various members of the NZRB/TAB to secure new venues for [TTCF]".

It adds: "The TAB has worked in an organised campaign with [TTCF] to obtain more venues for [the foundation] with the intention of more gaming funding for racing."

Asked last month if Internal Affairs was still investigating Mr Acklin, gambling compliance director Mike Hill said he was unable to discuss details of investigations.

However, more generally, Internal Affairs was conducting several investigations over gaming machine grants, which should be transparent and free from conflicts of interest, he said.

"This means that grant recipients, gambling operators and the bars in which gaming machines are located cannot have any `arrangements', as this is a breach of the Act."

He confirmed some investigations were interlinked.

Last month, an NZRB spokeswoman confirmed it worked with Internal Affairs on the investigation throughout 2007 and it was never "NZRB policy to work with [TTCF] to secure more venues".

Racing Board chairman Warren Larsen wrote to Mr Acklin on November 21, 2006 "regarding the operation and distribution of funds from The Trusts Charitable Foundation to the racing industry".

That letter, obtained by the ODT, documents how the board views the continuation of these distributions to the racing industry as a "high priority".

"I placed your material before the NZRB along with the benefits outlined by you arising from closer links with [TTCF], particularly relating to upgrading of social outlets within the NZRB distribution system," Mr Larsen wrote.

"The board resolved that they need to continue to work closely with all trusts, and that it would be inappropriate to try and link distribution arrangements with any upgrading work associated with a specific trust."

In addition, the NZRB spokeswoman said, "individual TAB employees who liaised with Mr Acklin did so without a directive from NZRB management or the board".

Three TAB staff were interviewed about their involvement with Mr Acklin as part of the 2007 investigation.

The NZRB undertook its own investigation, but would not comment on any subsequent disciplinary action.

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