Part 66 of 70 — Original Chapter: Chapter 19: Diverting Attention from a Tax Hike
This article forms part of the serialised republication of Panthers, Passion & Politics – The Roger Cowan Years.
The longest walks I ever made in my life were down Elizabeth Street1, and turning the corner to face all those journalists and cameras outside the court.
Panthers chairman Barry Walsh made that walk a number of times in 2004.
In May 2004, Cowan and Panthers were called to appear before the first inquiry conducted under the NSW government’s Section 41X legislation.2 This new section of the NSW Registered Clubs Act had appeared at the end of the previous year, around the time of major demonstrations against new taxes on clubs.
In late September 2003, the NSW government was in a spot over tax increases on clubs, and a major protest was imminent. A story broke in The Sydney Morning Herald about the dealings of Roger Cowan, his family company, Phyro Holdings, and Panthers. And the state Labor Government was breaking legislative ground by preparing to introduce legislation that would give it Royal Commission-style powers to investigate allegations concerning clubs.
In the aftermath of the second election — the October 2002, election — some members of the Five made allegations to the Department of Gaming and Racing (DGR).3
Darryl Freeman, from the DGR’s legal section, was contacted several times to request copies of the complaints, but he maintains that the DGR protects its informants, and that he would never approve a Freedom of Information request for the letter. He did, however, confirm the existence of a long letter with at least two signatures and possibly more. Later, a formal application under Freedom of Information was also rejected.
So, neither Cowan nor Panthers’ legal representatives have ever seen the allegations in those letters. Subsequent events indicate that they concerned the election itself, Roger Cowan and his family company, and accusations that Cowan misled both the Board and members of amalgamating clubs.
Allegations of this type would subsequently form part of the government’s action against Cowan and Panthers.
Some in the group [the Five] admitted contacting The Sydney Morning Herald at the same time.
Ron Mulock had strongly supported the Five. In 1998, without any discussion or negotiation, he embarked on a campaign to discredit Cowan.
When the dust settled after the election in October 2002, things seemed to go back to normal at Panthers. The new board — nine from Penrith and five from the amalgamated clubs — came together well. Cowan and the management team breathed a sigh of relief, happy to return their full focus to running the business.
Throughout the election campaign, and indeed even earlier, the DGR had a presence at the Club. The aborted board election of the previous March had gained DGR attention, and if — as Geoff James claimed — a letter had been sent by the Five in August, there was even more reason for them to be there.
Dennis Coffey had complained to journalist Roy Masters at a Melbourne Cup day function in November 2002 that a letter had also been sent to The Sydney Morning Herald but there had been no response. Coffey said the group had sent complaints to the DGR, and to the Herald. At the time Masters shrugged it off. He later told Cowan that nobody at the newspaper saw any reason to follow it up — or to mention it to anyone at Panthers. It was seen as bravado – or sour grapes — from a group of embittered men. It would be another year before the newspaper would see any news value in the allegations.
Quite soon after the second election, the DGR activity increased. Nobody was particularly concerned. The new board and management believed they had nothing to hide, and nothing to answer.
From around Christmas 2002 until well into 2003, the DGR officers spent a great deal of time at the club. According to Glenn Matthews, then financial controller, they were extremely thorough, and appeared to be satisfied with their findings in each of the areas of complaint. No action was taken against Panthers throughout this period.
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- Barry was headed toward the St James Centre at 111 Elizabeth St, Sydney. On the third floor of that building was the hearing room used by the Police Integrity Commission (now called Law Enforcement Conduct Commission). This room was used for the Inquiry conducted by Ian Temby for the Department of Gaming and Racing.
↩︎ - Section 41X of the Registered Clubs Act gave the Director of Liquor and Gaming power to appoint an investigator to inquire into specified matters concerning a registered club, with extensive powers to obtain evidence and require the production of documents. Panthers was the first club investigated under the provision. A second Section 41X inquiry, concerning Paddington Bowling Club, was conducted in 2007. The provision was repealed in 2011.
↩︎ - The Department of Gaming and Racing (DGR) was then the NSW government agency responsible for the regulation of registered clubs, liquor and gaming.
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