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DETAILS Page19

EXCLUSIVERACINGSUNDERBELLY

DamienOlivers$10,000secret bet

NICKMcKENZIERICHARD BAKER

ContinuedPAGE 4

Topjockey DamienOliver,andbelow,winning theMelbourne Cupon Media Puzzle in 2002.

PICTURES:JENNYEVANS,SHARONSMITH

LEADING AustralianjockeyDamienOliverallegedlybet around$10,000onarivalhorsetobeata horsehe wasrid-ingin thesamerace,in anapparentflagrantbreachof therules ofracing.

Informationthat reveals Oliverwagered onMiss Octopussyin late2010was uncoveredby authoritiesinvestigatingthe racingindustryaspartofa probecentringon allegedracefixing involving controversialjoc-keyDannyNikolicanda horsecalledSmoking Aces.It isunderstoodthatOliveruseda middlemantoplacehisbet onMissOcto-pussy, whichwon therace.

Aspart ofan ongoinginvestigationinto theracingindustry,TheSundayAgecanalsorevealthat:

Champion jockeyMarkZahra wasoffereda $5000 kickback butwasultimatelypaidonly$3000 toridehishorse toadvantageDanny Nikolicsultimatelywinningride onSmoking

Acesat Cranbournein Aprillastyear. Nikolic attemptedto pressureasmallnumberoffigureswhoworkatCaulfieldrace trackto trainSmoking

Acesin a certainfashionin themonthsbeforetheApril race. Federalpolice detectedleading joc-keyCraigNewittgivingtipstoa majordrugtraffickeraround2006. A prominent underworldinformerin Melbournes gangland warstoldpolicehehad oncebeendrugdealerTonyMokbels racingbagman andhadmade improper payments tojoc-keyJim Cassidy.

Theinformer,who wasconvictedandagreedto testifyoverthe2003kill-ingsof JasonMoranand PasqualeBarbaro, toldfederallaw enforcement

authoritiesaround 2006that hewasoncegiven$25,000 byMokbeltogivetojockey Cassidy inreturn forinsideinformationon hisraces.

Therules ofracing prohibit jockeysbettingonracestheyridein andbanthesellingof insideinformation abouttheirraces.

TheinformersaidheflewtoSydneywith themoney andhandedCassidy thecash.

Earlierthisyear,TheAgereportedthatstate authoritieshad alsouncoveredinformationthat showedthatCassidyhad receivedat least$90,000from Mokbelin returnforinsideinformation.

Cassidy,whohas publiclydeniedreceivingthemoneyorgivingtipstoMokbel,has neverbeen heldtoaccountoverthis conduct, despiteatleastthreepolicingagencieshavingevidence showing itoccurred.

Itis understoodDamienOliver, who

hastwiceriddenthe MelbourneCupwinner,bet viaa thirdpartyon favour-iteMissOctopussytowina nightraceatMooneeValleyonOctober1, 2010.

Oliverwasridingin thesameraceonthe secondfavourite,a horsecalledEuropa Point. Itis likely Oliver wouldhavedoubled hismoneywith hisbet,dependingon theexactodds given.

TheSundayAgehasno evidenceandis notsuggestingthatOliveralteredhisown ridingbehaviourto favourhis

wager.WhenTheSundayAgeaskedOliver

severalquestionsabouthis allegedbetonMiss Octopussy, herepeatedlysaid:Nocomment.Askedif hewas pre-paredtodeny bettingon thehorse,Oliver said: Nocomment.

Oliveris onlyone ofseveraljockeyswhohavecome tothe attentionofpolice orstewardsin thelast fewyears.

Developer: teamDoylewanted cash-for-accessEXCLUSIVE

ROYCE MILLARMELISSA FYFE

BATTLEFORMELBOURNE

Gatekeeper to thevote PAGE6

A KEYmemberof lordmayorRobertDoyleselection teamorganisedaseriesof meetingswith citydevelopersinwhichtheywereaskedfortensofthousandsof dollars eachfor theDoylecampaign inreturn forTownHallaccess.

Onedeveloper,who attendedoneofthe meetingsorganisedbyCr DoylesNo. 1 council candidateKevinLouey,toldTheSundayAgehewas surprisedatthesumof moneyrequestedasadonation between$50,000and

$100,000. Thesourcesaid hefeltuncomfortable whenit wasmadeclearthata donationwouldopen doorsinTownHall,if CrDoylewas re-elected.

Thedeveloper, a significantplayerinMelbournespropertymarket,doesnotwanttobe named,butwantsthemeetings,held midthis year, madepublicbecausetheircash-for-accessmessage seemedinappropriate.

It wasclear themoney wouldbeusedfor MrDoyles re-election,thesourcesaid.Itwas clearly aboutthosemattersof access.

A preliminary, smallmeetingofprominent developerswas heldoverdrinksat aCollinsStreetvenue;alargerdinnermeeting ofdevelopers

wasplannedsoon after.TheSundayAgeunderstandsthat amongthoseinvitedwereprominentShanghaidevelopersactive in thecentralcity:JeffXu oftheGolden AgegroupandRichardGuof theAXFGroup.

MrLouey hasrefusedrepeatedrequests foran interview.The publicrelationscompany runningCr Doylescampaign, theCivic Group,advised

TheSundayAgetoputquestionsinwritingto CrLouey.Cr Loueydidnotanswerthosewrittenquestions.Instead, TheSundayAgereceived aletterfromhis lawyer.

NordidCrDoylerespondto writ-tenquestionsabout hisreasons forhavingCr LoueyatNo. 1 onhiscoun-cillorticketfor theelection.

MrXuhas deniedbeingaskedtodonatetotheDoylecampaignorhav-ingpromisedfinancialsupport fortheDoyleteam.Kevin didntask forthis [adonation].I dontknowwhere thisisfrom.

MrXusaidhe wouldconsiderbuy-inga tableat apublicfund-raiser ifaskedby candidatessupportiveof

developers,but thathe wouldnotattenda privatefund-raisingfunc-tion.Effortsmadeto speakto MrGu,

whois overseas,were unsuccessful.Revelationof therequestsfor large

donationsraises questions forCrDoyle aboutwho isbankrollinghiscampaign,and onwhat basis.

Oftheninemainteamsseekingelection,TeamDoyleis theonly onerefusing todisclosethe amountandsourceof fundsduring thecampaignaspartof atransparencycampaignbyTheAge. Lastweek,CrDoylesaidhe

wasnot receiving anypoliticalpartyfundingbutrefusedto ruleout back-ingfrom developersand corporates.

Hestressedthat hewould fully

complywithlocal governmentlawswhichrequirethat allcampaigngiftstotalling$500 ormore aredisclosed

within40 daysafter thepoll.Oneof CrDoyles team,councillor

CarlJetter,toldTheAgelastweekheexpectedhis teamto spendup to$500,000on thecampaign.

Thecity councilhasplanningauthorityover alldevelopmentpro-

jectsunder25,000 squaremetres.Ithasanimportantadvisoryroletothestategovernmenton largerprojects.Thecouncilalsoplaysa keyroleinliquorlicensingin thecity.

WithMIKIPERKINS

13mpayoutfor topcopsand lawyersCAMERONHOUSTON

EXCLUSIVE

Ex-gratia payments

2012 201112,953,000 194,000

The amount for 2012 relates to compensation payments under various legal

settlements including those related to a number of former statutory office holders

ContinuedPAGE 2

THEBaillieu governmentmade$13 millionin secret compensationpayoutsto severaltop policeand justiceofficialswhowere forcedto resignincontroversialcircumstances lastyear,

withformerDirector ofPublicProsecu-tionsJeremyRapke,QC, believedtohavebeenpaid about$8million.

FormerVictoriaPolicechiefcom-missioner SimonOverlandis believedtohavewalkedawaywithmorethan$2 millionfollowinghis shockresigna-tionlast year.Theformer director oftheOffice of Police Integrity,MichaelStrong,is alsounderstoodto havereceived a substantial ex-gratiapayment.

Themassive severancepackagesareexpectedto intensify criticism oftheBaillieugovernmentshandlingofthelaw andorder leadershippurge,particularlythe roleplayedby PoliceMinister PeterRyanin theresignationsofMr Overlandand MrRapke.

Oppositionspokesmanfor govern-mentscrutinyMartin Pakula saidthemagnitudeof thetaxpayer-fundedset-tlements wouldmakecorporateAus-

tralia blush.Thegovernments disclosureof the

$12.9millionpaymentsappearedin aone-paragraphstatementundertheheading ex-gratia paymentsonpage 151of theDepartmentof Justiceannualreportfor 2011/12,whichwastabledin Parliamenton Thursday.

Whilethe reportdoesnot identifytherecipientsor theamountstheyreceived,a sourcewithknowledgeofthepaymentshas providedadditionalinformationto TheSundayAge.

Inthe previous financialyeartheDepartmentof Justice madepayoutstotalling$194,000 toformer staff.

Yesterday, a spokesmanfor theBail-lieugovernmentdefended thesize ofthepayouts,but refusedtosay howmanypublicservants hadbeen paid.

Allterminationarrangements werereasonableand appropriatein thecir-

cumstanceshaving regardto theindi-viduals yearsof serviceand entitle-

ments,the spokesmansaid.Thespokesmandid notdenythat

MrRapkehad beenpaid$8 millionorthatMr Overlandhad received$2 mil-lion.Healso refusedto commentwhenaskedbyTheSundayAgeiflargepay-mentshadbeenmade toavoid litiga-tionor a politicalbacklash.

Aspokeswomanfor theOfficeofPublicProsecutionswouldnot discuss

whyMr Rapkesseverancepayouthadnotbeendisclosedinthe departmentsannualreport,whichwas alsotabledinParliamentlast week.

MrRapkewas paidan annualsalaryofabout$380,000forhisroleasDir-ectorof PublicProsecutions.Hister-minationpackageis believedto havebeennegotiatedbyMelbournelawfirm,ArnoldBlochLeibler.

Lastnight,Mr Pakulacalledforgreatertransparencyof allex-gratiapaymentsmadeto prominentpublicservants.

Theunderminingof theOPP andthesabotage ofthe chiefcommissioner

weresordid episodesrun fromtheheartof theBaillieugovernment.Wealreadyknowwhat thatinterferencehascostin termsof theadministration

ofjusticeandnowweknowwhatithascosttaxpayers,Mr Pakulasaid.

MrRapkeresignedas DirectorofPublicProsecutionsin Maylastyearfollowinga report thatfoundhe hadmadean errorof judgmentby recom-mendingthe promotionof threerelat-ivelyjunior lawyersto highlypaid rolesasassociatecrownprosecutors.

MrRapkewas forced todenyallega-tionshewas involvedin a sexualrela-tionshipwithone ofthe lawyers,DianaKaramicov, but the appointmentssparkeda bitter internalfeud betweenMrRapkeand histhen deputy, chiefCrown ProsecutorGavinSilbert, SC.

OPPsolicitorStephenPaynewasalsonamedin Parliament asa centralfigurein thecampaigntoundermineMrRapke.

7/29/2019 2012 Best Sports Story Winner

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Things to know before you can: Excludes other subsidiaries and brands and applications for Home Seeker conditionally pre-approved home loans. We reserve the right to terminate this of fer at any time. Offer involves discounting our standard fixed rates where necessary. Interest rate discount applies to relevant reference interest rate until loan is switched to another loan type o r the initial fixed rate period expires. The interest rate(but not the discount) included in the letter of offer may change. The guarantee applies at the time of application only and excludes any subsequent rate changes. If your loan is a 15 year fixed rate loan, Rate Lock allows you to lock in the interest rate for a period of 90 days effective from the date we process your request. A Rate Lock fee applies. Eligibility criteria and other conditions may apply to some loans. Applications aresubject to credit approval. Full terms and conditions will be included in our loan letter of offer. Fees and charges may be payable. Commonwealth Ba nk of Australia ABN 48 123 123 124. Australian credit licence 234945.

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Complete your application for full approval by 9 November 2012.

4 O C T O B E R 1 4 , 2 0 1 2 T H E S U N D A Y A G E

NEWS

Stumbling onto the tip of an iceberg

Fromleft, JimCassidy,DannyNikolicand MarkZahra.

DannyNikolic ridingSmokingAces (onleft)in Seymour in August.

PICTURE:BRETT HOLBURT

Itwas luck that uncoveredabettingscandal,writeNickMcKenzieandRichardBaker.

Gotatip?Emailus at

investigations@theage.com.au

THEbettingagenciesneversuspectedathing.Why would they?Itwas onlyrel-ativelysmallbetsplacedin Queensland,

Victoriaand WesternAustraliaon Smo-kingAces.Forinstance, inPerth,oneluckypunter collectedaround$70,000offtheback oftwo five-grandwagers.

Buthad thebettingcompaniesinvolved knowntheidentityof someof

thepunters,theirsuspicionswouldmorethanlikely havebeenaroused.TheGold Coastpunterwho placed

a winningbeton DannyNikolicsrideSmoking Acesat Cranbourneon April27lastyearwasa goodmateof DannysGoldCoast-based brother,John.He

wonat least$60,000.InMelbourne,apunterwhowasa

closeassociateof DannyNikolicbetacoupleofthousandon Nikolics rideandwon around$25,000.Anotherpunterwhopocketeda fewgrand afterSmoking Aceswin wasTommyNikolic,Dannysyounger brother.

ThePerthpunterwas millionairebusinessmanand convictedcannabistraffickerPeterJones,who notonlyownedseveralhorsesthatNikolichadriddensuccessfullyinterstate, butwasknownfor joining thechampionjockeyathis infamouspost racingcarnivalcelebrations, eventsthatstartedatpubsand oftencontinued innight-clubsand hotelsuites. Allup, thesefourmencloselytied toDanny NikolicPeter Jones, TommyNikolic,the Mel-bournepunterand theGold Coastpunter, collectedaround$200,000, atenfold returnon theirwagering.

Sowasit justgoodluck?Orhadtheybeentold byan insiderthatSmoking

Aceswas a strongprospect?Itis thesequestionsthat Australias

mostseriousracingcorruptioninquiryisseekinganswersto. Inthe process itisuncoveringa widerangeof dubiousassociationsand behaviourinvolving

Australiasleadingjockeys.Theinquiryby theVictoriaPoliceis

notonlyexamininginformationsug-gestingthat Nikolicwas tippinginsideinformation tothesefourmen abouttheprospectsof SmokingAces,but

whetherhe triedtoengineertheout-comeofthe Cranbourneracein concert

withanother jockey inorderto increasethehorseschancesof winning.As TheSundayAgerevealstoday,thereis,accordingto numerousracingindustrysources,strong circumstantialevidenceto supportthe polices suspicions.

Thekeyto understandingthe Smok-ingAcesscandalis whatoccurredin themonthsand yearsbeforethe race.

Racingstewardshavelongsuspec-tedNikolicof tippingto hispuntingassociatesand, occasionally, riding toincreasetheirchancesofbettingsuc-cess. Amajorcase broughtby stewardsin2010 madesimilarallegations,but

wasrejectedby Victorias racingtribunalbecauseof insufficientevidence.

Severalracingsourceswho havehaddealingswithNikolicdescribea talen-tedbut erraticjockeywho notonlyreg-ularly tipped,but playedpuntersoffagainsteach other bygivingdeliberatelyfalse informationaboutthe chanceofhishorsewinningtolengthenitsodds.

Nikolicis notalonein tippingpolicingagencies haveinformation

whichshowsbeyonddoubt severaltop

jockeys,includingJim Cassidy andCraigNewitt,havetipped.Cassidyhaspri-vatelytold investigatorshe seesnothing

wrongwiththepracticebecausemostjockeysdo it.The practiceoccupiesagreyareabutbecomesa clear breachoftherulesofracingif moneyisgiventoa

jockeyin returnfor tipson hismount.Inmostcases,thisconducthasbeen

uncoveredaccidentally as jockeys

voiceshave featuredunexpectedlyonthetappedphoneconversationsofgangsters.(For example,Newittgavetipsin late2006toa majordrugtraf-ficker whowas convictedthisyearof

Australiasbiggestecstasyimportation.)Generally,nothinghas beendone

aboutthisbecauseracingauthoritiescantaccessoruse policeinformationa problemno stategovernment seemseager toconfront.

Inthe caseof SmokingAces,trainersandjockeyshaveprivatelyconfirmedthatpolicehaverecentlyconfrontedseveralindustryplayersaboutwhatissuspectedto havehappenedin connec-tionto theCranbourneracefix.

Accordingto sometheyhave soughttospeak to,detectivesare interestedinnotonly whathappenedon theday,butintheleadup totherace.

TheweeksbeforetheAprilracewerestressfulforNikolic. Hisformerfather-in-law, racingidentityLesSamba,wasmurderedand Nikolicwas strugglingtogetregular ridesontop horses.Sometimebeforetherace,Nikolicfellout

withseveralCaulfield-based racing fig-ures. One,trainer ByronCozamanis,refusedto takedirectionsfromNikoliconhow SmokingAcesshouldbe

trained.SourcessayjockeyMarkPegus,whowas doingtrackworkfor Coza-manis, alsoargued withNikolicaboutPegusavailability toride certainhorses.(Nikolicwaslaterchargedby policewithassaultingPegus,in amatterstillbeforethecourts).

Toseveral observers,Nikolicappearedto haveanunusually largesay

inthe SmokingAcespre-raceprepara-tionas thehorsewasmovedfrom theCozamanisstabletonew trainers.Nikolicalsowantedto influencehowatleast oneotherjockeywouldridetheirmount onApril27. Itis understoodthat

jockeyMark Zahrawasoffereda $5000kickbackfor ridinghishorsein a way

whichwouldfavour Nikolics ride.Zahraagreedto helpout,effectivelybecomingpartof a conspiracy tosecretly shortenSmokingAceschances ofwinning.Theonlythingleftto dowas punt.

Andso, inthe hoursbeforethe race,thebetswerelaid.Inthelastfewmonths, PerthsPeterJones,theMel-bournepunterand theGold Coastpunterand TommyNikolichavebeenapproachedby authoritiesabouttheirsuccessfulbettingon Nikolics horse.

Peter [Jones]was upat StKildaRoad[policecrimedepartmenthead-quarters].And hewas shittinghimself,saysone source.

Whichleadsto thenext questiononeverybodyslipsin Australianracing:didpoliceconductingan investigationintothe murderof Sambainadvert-entlycaptureconversationsthatwillproveNikolic engagedin racefixing?

Andif thiscorruptionwasonlyuncoveredbecause policestumbledontoit,how widespreadis it?And, per-hapsmostimportantly, willracingauthorities(who havenopolicepowers)orpolice(whoonly recentlybegandir-ectingresources tofightingracing cor-ruption)getto thebottomofit?

From PAGE 1

DamienOliverssecretwager

Jockey CraigNewittand a well-knowntrainerbothhad multiple dealings

withone ormore membersof a largelyItalian-Australiancrime syndicateinvestigatedby thefederalpolice andtheVictoriaPolicebetween 2004and2009in connectionwith severalalleged drugimportations.Twomem-bersof thissyndicate,who cantbenameddue tocourt suppressions,haveraced severalhorsesin Victoriaoverthe pastfive years.

Whenasked byTheSundayAgeabouthis dealingswithone syndicatefigure,Newittsaidhehadno ideathe

manwas involvedin illegal activity.Weonly evertalkedabout horsesandhowthey weregoing, hesaid.

Lastweek,VictoriaPolice whichismovingto finaliseits investigationintoDannyNikolicover theSmoking

Acesrace-fixingallegations bannedNikolic,37, fromenteringCrownCasino.

TheVictorianCivil andAdminis-trative Tribunalwill onTuesdayhearNikolicsapplicationto havea stayofproceedingsin orderto returnto riding

whilethetribunalconsidershis bidtooverturnhis two-year disqualification.

Hewas disqualifiedby Victoriasracingdisciplinaryboard forthreaten-ingchief steward Terry Bailey.

Nikolicand Zahracouldnot bereachedfor comment.

Assault probeat VillawoodNATALIEOBRIEN

TWOguardsfromtheprivatecom-panyrunning Australiandetentioncentreshavebeen stooddown pend-ingan investigationinto allegationsthatthey assaulted a mentally disabled

manatthe Villawoodcentre,justdaysafterhe arrived.TheAustralianFederalPoliceare

believed tobe reviewingCCTV footagefromthedetention centreaspartof aninvestigationinto theincidentinvolvingguardsfrom thecompanySerco.

TheSundayAgehasbeentoldthattheassaultwason a29-year-old Kurd-ishasylumseeker, whosuffersfromamentalconditionthat psychiatristshavewarned is exacerbatedbyincarcerationwithoutspecialistmental-healthservices.

TheDepartmentof Immigrationconfirmed an incidenttookplace onOctober2 and a policeinvestigation

wasunder way.The departmenttook actionvery

quicklyto instigate anindependentinvestigation,a spokeswomansaid.

Thementallydisabled manarrivedinAustraliain August2010andhasbeenindetentionfortwoyears.Hiscasewastaken totheFederalCourtinJunein anattemptto gethimreleasedand givehim psychiatriccare.

Duringthe courthearingin June,

ProfessorLouise Newman,thedirectorofthe Centrefor DevelopmentalPsychiatryand Psychologyat MonashUniversity,revealed thatthe manhadpreviouslysufferedassaultswhile indetention.

Hehas experiencedtrauma whilst

indetention,includingsexual assault,aggressionand tormentinginterac-tions,shesaidin areporttothecourt.

ProfessorNewmans reportcriti-cisedthe wayhehad beenmanagedandwarned hisconditionwas likelyto deteriorateif hecontinued tobesubjectedto sucha strictregimeandisolation.She recommendedhisrelease intothe communitywithappropriatemental-healthcare.

Hewas released intocommunitydetention in Melbournein July, and

wasa clientof FoundationHouse,theVictorian Foundationfor SurvivorsofTorture headedby ParisAristotle, amemberof thefederalgovernmentsexpertpanelon asylumseekers.

Butadvocatesfor themansayhewasleft aloneand notgiven thepsychiatriccare thatfederalgovern-menthealthservices weresupposedtoprovidetohim.Latelastmonthhisrelease wasrevoked becauseof allegedviolentand threateningbehaviourandhewastakenbackintodetention.

ThemanwasthentransferredtoVillawood andwithin twodays ofhisarrivalthe alleged assaulttookplace.

Baton toolused indetention centresNATALIEOBRIEN

Baton-styleimplements arebeingused,despite denials.

IMAGESof baton-styleimplementsusedby Sercoguardshave beenrevealedin a seriesof governmentdocumentson weapons andrestraintsusedin detentioncentres,whichhavebeenobtainedbyTheSundayAge.

Thedocumentsalsorevealthatinstrumentsof restraint havebeenusedmorethan100timesinoneyearforwhat theDepartment ofImmigra-tionhas deemed minorincidents.

Afteran 18-monthbattle togainaccessto thedocumentsusingfreedom-of-informationlaws, thepagesthatwere finallyreleasedshowthebaton-styleimplements torchesandmetal detectors arebeing useddespitedenialsfromthe departmentthatstaffhad them.

TheSundayAgesought thedocu-mentsafterclaimsby survivors oftheChristmasIsland shipwrecktragedythatVillawoodguardshad threatenedthemwithbaton-styleweaponstheyfearedwereelectrified cattleprodsduringtheirforcedtransferto Christ-masIsland.

Atthe time,thedepartmentwasquestionedabout whetherguards hadbaton-styleweaponsthat mighthavebeenmistakenfor cattleprods.

A departmentalspokespersonsaidthatbatonsor Maglite-typetorches orotherimplementsthat maybe con-fusedwithcattle prod-likeweaponsarenotpart ofthe standard kitof resourcesusedby Sercostaffeitherin detentioncentres orduring escortactivities.

Butthe documentsclearlyshow theimplements, althoughdetailsabouttheirusehas beenredacted.Therearealsoimagesof theflexi-cuffs usedondetainees.

Theincidentin whichtheasylumseekerscomplainedtheyhad beenthreatenedwiththe batonswasthesubject ofan inquiryby theCommon-

wealth Ombudsman.Areview offootageof theincident

didnotrevealanyevidenceof thebaton-styleweaponsbeingused.

Thedocumentsthatwere releasedincluded in-confidence statisticsshowingthat instrumentsof restraint

wereusedfor minorincidents117timesin 2009.The departmentrefusedtoreleaseanyfiguresfor2010and2011.

TheFOI documentsincludeda trailofinternalemailswarning thatthelistofrestraintsidentified inSercos PPM(policy andproceduremanual)is not(wedontthink)in accordancewith

whatthe Depthas agreed to. AnImmigrationspokeswomansaid:Thedepartmentis notaware ofany incon-sistenciesbetweenthe agreed formsofrestraintand Sercopolicydocumenta-tion.