Section: 2.4.2 Transactions by some Ministers and others.
Part: (e)
(iii) Noeur Pty. Ltd.
John Colin Bartlett is a property developer and a close friend of Hinze. The two men met every fortnight for years. On 11 August, 1983, a Bartlett company, Noeur Pty. Ltd., paid $70,000 to the Hinze company, Kanni Pty.Ltd. which passed the money on to another Hinze company, Waverley Park Stud Pty. Ltd. Eight days later, on 19 August, 1983, Colrene Pty. Ltd., another Bartlett company, lodged an amended rezoning application with the Albert Shire Council in relation to its Nerang Village development. On 15 September, 1983, Kanni Pty. Ltd. wrote a cheque for $70,000 payable to Noeur Pty. Ltd., which cheque was never presented. There was no document then in existence (apart from notations in Hinze company internal (records) to indicate that the Noeur Pty. Ltd. payment of $70,000 was a loan. On 20 September, 1983, the Albert Shire Council town planning committee decided to forward the amended application for rezoning approval to the Local Government Department with a recommendation that it be approved. On 23 September, 1983, Colrene Pty. Ltd. paid Kanni Pty. Ltd. $30,000 which Kanni Pty. Ltd. passed on to Waverley Park Stud Pty. Ltd. On 15 December, 1983, Colrene Pty. Ltd.’s application for rezoning was approved but the Bartlett group of companies were later placed in receivership and liquidators appointed. A deed of forgiveness dated 25 July, 1985, was produced to this Inquiry, which provided that Noeur Pty. Ltd. had agreed to forgive the debt and release Kanni Pty. Ltd. from its obligations to repay the amount of the debt. Hinze and Mrs. Hinze’s signatures appear on the deed over the common seal of Kanni Pty. Ltd. Notwithstanding the deed of forgiveness, Kanni’s balance sheets continued to show the amount of $100,000 through the 1986 and 1987 financial years as a current liability owing to Noeur Pty. Ltd. Hinze gave evidence that the loans from Noeur Pty. Ltd. had not been forgiven but might be offset by other claims to which reference was made. The latter proposition was plainly incorrect.
(iv) Leslie Corporation
Leslie Corporation, a group of entities which included Fine Braid Leslie Partnership, was the developer of a canal estate “Coral Gardens”. Subsequent to the serious flooding in south-east Queensland in 1974, a cautious approach was adopted to the approval of canal estates and, as a result, the “Coral Gardens” development was delayed. There was considerable negotiation between Leslie Corporation and various Government authorities, and Hinze was lobbied by representatives of the group and arranged and attended various meetings between the company and officials of Government Departments. An Order in Council approving the construction of canals on the “Coral Gardens” estate was gazetted on 17 March, 1983. Francis Langsworth, an associate of Leslie Corporation, that sum was paid to discharge the earlier loan of
$61,300, together with interest of $38,700, by Leslie Corporation to Lowanna Pty. Ltd. In the same month, Leslie Corporation paid $100,000 to Waverley Park Stud Pty. Ltd. Mrs. Hinze deposited the cheque into the bank account of that company, noting on the deposit book that it was a “deposit on purchase of Waverley Park unconditional contract fallen through”. Waverley Park Stud was then and still is the domestic residence of Mr. and Mrs. Hinze, and there was never any intention to sell it to any of the companies in the Leslie Corporation group. An unstamped document described as an “option to purchase” and signed by Hinze and Mrs. Hinze over the common seal of Waverley Park Stud Pty. Ltd. was produced to this Inquiry. According to that document, the option had not expired by April 1983 and was available for exercise until 30 June 1983. Inconsistently, an unsigned form of contract annexed to that document required that any sale to arise from any exercise of that option was to be completed by 31 July, 1982, more than eight months prior to the banking of a cheque for $100,000 into the Waverley Park Stud Pty. Ltd. bank account. In May 1983, Leslie Corporation made a further payment of $35,000, this time to Lowanna Pty. Ltd. According to the records of Leslie Corporation that payment was a loan. In August 1983, Leslie Corporation wrote to Waverley Park Stud Pty. Ltd. in terms which suggested that the option was still current and had been extended to 31 December 1986 in return for $35,000. A further $35,000 from Leslie Corporation was paid into the bank account of Waverley Park Stud Pty. Ltd. on 10 October, 1983. According to Langsworth, there was an extension of the option in consideration of the sum of $70,000 comprised of $35,000 by way of release of the loan to Lowanna Pty. Ltd. and a further payment of $35,000. Hinze agreed that the total amount received from Leslie Corporation in the period in question was $170,000 and that at least $100,000 of that amount was not repayable.
(v) Bill Acceptance Corporation Ltd.
Although Hinze did not become the Minister for Racing until late in 1982, he had ministerial responsibility for racing from the end of 1980. As such, he was responsible for Racing Development Fund, which was established in mid 1981 to facilitate an extensive racing development programme in Queensland and for that purpose needed to borrow large sums which it serviced from income derived from the clubs and the Totalisator Administration Board. On 18 June, 198 1, Bill Acceptance Corporation Ltd. approved a loan facility of $500,000 for Lowanna Pty. Ltd., and a first instalment of $178,772.41 was paid to Lowanna Pty. Ltd. on 17 July 1981. On 6 August, 1981, a Bill Acceptance Corporation Ltd. officer attended a meeting of the members of the Racing Development Fund at which Hinze was present in his ministerial capacity. The finances and borrowing requirements of the Racing Development Fund for the redevelopment of a number of racecourses were discussed.On 11 November, 1981, Bill Acceptance Corporation Ltd. approved a loan facility of $275,000 for Kanni Pty. Ltd., and the first payment of $161,910 was made on 4 January 1982. On 24 February 1982, Hinze, Mrs. Hinze, and the Bill Acceptance Corporation Ltd. officer who had attended the meeting of the Racing Development Fund members met to discuss the personal requirements of Hinze and his associated interests. $10 million Albion Park redevelopment programme. The Bill Acceptance Corporation Ltd. officer noted:
“Building tenders are to be called in March with construction to commence in April 1982”. On 7 April, 1982, Bill Acceptance Corporation Ltd. agreed to provide a $5 million facility to the joint venturers in respect of the Gemini Court project. On 18 June, 1982, the trustees of the Albion Park Paceway resolved to accept a tender by Bill Acceptance Corporation Ltd. for a loan of $10 million for the Albion Park redevelopment programme. Subsequently, on Hinze’s recommendation, Cabinet approved the transaction, and the money was lent by Bill Acceptance Corporation Ltd. on 10 August, 1982.
(vi) George Herscu
In about August 1982, the Brisbane City Council gave approval for the development of a shopping centre at Sunnybank. The approval was subject to certain conditions which restricted vehicular and pedestrian access. The centre opened in July 1983, but a fence inhibited pedestrian access and there were restrictions on the methods by which vehicles could enter and leave the site. By October, 1983, Hersfield Developments Corporation Pty. Ltd., a company associated with George Herscu, had purchased the shopping centre, and was then concerned at the commercial consequences of the access difficulties. Approaches to Brisbane City Council proved unsuccessful, and Herscu approached Hinze with whom he shared an interest in horse racing. On 21 November, 1983, Herscu’s solicitors, Messrs. Cooper Korbl & Co., forwarded $50,000 which was paid into the trust account of Hinze’s solicitors, Messrs. Short Punch & Greatorix. In their letter dated 21 November, 1983 Herscu’s solicitors had stated that the money was advanced “ ... for six months at 15 per cent per annum payable on repayment of the deposit at the end of six months on 22 May 1984”. Reference was also made in that letter to a further loan to be made to “one of your clients”. The amount received was provided by Hinze’s solicitors to Kanni Pty. Ltd. Hinze actively involved himself in attending to the access difficulties at the shopping centre. In December, 1983, Hinze approached the then Commissioner of Main Roads and requested him to consider the possible methods of overcoming the problem. On 19 December, the Commissioner of Main Roads wrote to the Town Clerk of the Brisbane City Council stating that Hinze had asked him to inform the Town Clerk that he supported a review of the access. On 22 December, a second instalment of $50,000 was paid by Cooper Korbl & Co. to Hinze’s solicitors, who again paid the sum to Kanni Pty. Ltd. On 13 March, 1984, Mrs. Hinze sent her solicitors an acknowledgement of debt under the common seal of Kanni Pty. Ltd. which provided for $50,000 to be repaid on 22 May, 1984, and $50,000 to be repaid on 19 June, 1984. The matter of the access to the shopping centre was finally resolved in mid-October 1985, when the Brisbane City Council accepted in principle the proposed changes. No demand for repayment of the loan was made until 30 August, 1988, during the course of this Inquiry. By November, 1988, no amount of principal or interest had been repaid.
(vii) Kevin Will Seymour
Seymour is a property developer and friend of Hinze, with whom he shares a common interest in racing. Seymour is, or was, the Chairman of the Albion Park Trotting Club. He was appointed by the Governor in Council variously a member of the Queensland Trotting Board, a member and Deputy Chairman of the Queensland Harness Racing Board and one of three trustees of the Albion Park Raceway during the period that Hinze had ministerial responsibility for racing. In late 1985, a Hinze company, Oxenford Tavern Holdings Pty. Ltd., was attempting to sell a property which it owned near its Oxenford Tavern. The property for sale was a shop which was subject to a lease and was operated as a “Big Rooster” food outlet.Between 23 December, 1985 and 18 February, 1986, Seymour Developments Pty. Ltd. paid amounts totalling $320,000.00 to Oxenford Tavern Holdings Pty. Ltd. In January, 1986, Seymour received from his solicitors a draft contract for the purchase of the property for $320,000 with completion on 2 February, 1986, together with documentation appropriate for the transfer of the property, with the name of the transferee left uncompleted. Seymour’s solicitors advised him that the contract had to be lodged for assessment of stamp duty within one month of execution. No contract was ever signed, but there was evidence asserting that a memorandum of transfer was executed and handed by Mrs. Hinze to Seymour together with a certificate of title to the property. No documentation was stamped until after the conclusion of the evidence at the public sittings of this Inquiry, and no transfer was registered. Oxenford Tavern Holdings Pty. Ltd. remained the registered proprietor of the property and continued to receive rent from the lessee. In mid 1987, Oxenford Tavern Holdings Pty. Ltd. sold the property to a third person, to whom the property was transferred.On 29 June, 1987, Oxenford Tavern Holdings Pty. Ltd. repaid $320,000 to Seymour by a bank cheque. No interest was paid. On the same day, Seymour gave a bank cheque for $150,000 to Mrs. Hinze which she deposited into her bank account. On the same day, she drew a cheque on her bank account for $150,000. On 15 March, 1988, during the course of this Inquiry, $150,000 plus interest was repaid to Seymour.
To be continued.........
Part: (e)
(iii) Noeur Pty. Ltd.
John Colin Bartlett is a property developer and a close friend of Hinze. The two men met every fortnight for years. On 11 August, 1983, a Bartlett company, Noeur Pty. Ltd., paid $70,000 to the Hinze company, Kanni Pty.Ltd. which passed the money on to another Hinze company, Waverley Park Stud Pty. Ltd. Eight days later, on 19 August, 1983, Colrene Pty. Ltd., another Bartlett company, lodged an amended rezoning application with the Albert Shire Council in relation to its Nerang Village development. On 15 September, 1983, Kanni Pty. Ltd. wrote a cheque for $70,000 payable to Noeur Pty. Ltd., which cheque was never presented. There was no document then in existence (apart from notations in Hinze company internal (records) to indicate that the Noeur Pty. Ltd. payment of $70,000 was a loan. On 20 September, 1983, the Albert Shire Council town planning committee decided to forward the amended application for rezoning approval to the Local Government Department with a recommendation that it be approved. On 23 September, 1983, Colrene Pty. Ltd. paid Kanni Pty. Ltd. $30,000 which Kanni Pty. Ltd. passed on to Waverley Park Stud Pty. Ltd. On 15 December, 1983, Colrene Pty. Ltd.’s application for rezoning was approved but the Bartlett group of companies were later placed in receivership and liquidators appointed. A deed of forgiveness dated 25 July, 1985, was produced to this Inquiry, which provided that Noeur Pty. Ltd. had agreed to forgive the debt and release Kanni Pty. Ltd. from its obligations to repay the amount of the debt. Hinze and Mrs. Hinze’s signatures appear on the deed over the common seal of Kanni Pty. Ltd. Notwithstanding the deed of forgiveness, Kanni’s balance sheets continued to show the amount of $100,000 through the 1986 and 1987 financial years as a current liability owing to Noeur Pty. Ltd. Hinze gave evidence that the loans from Noeur Pty. Ltd. had not been forgiven but might be offset by other claims to which reference was made. The latter proposition was plainly incorrect.
(iv) Leslie Corporation
Leslie Corporation, a group of entities which included Fine Braid Leslie Partnership, was the developer of a canal estate “Coral Gardens”. Subsequent to the serious flooding in south-east Queensland in 1974, a cautious approach was adopted to the approval of canal estates and, as a result, the “Coral Gardens” development was delayed. There was considerable negotiation between Leslie Corporation and various Government authorities, and Hinze was lobbied by representatives of the group and arranged and attended various meetings between the company and officials of Government Departments. An Order in Council approving the construction of canals on the “Coral Gardens” estate was gazetted on 17 March, 1983. Francis Langsworth, an associate of Leslie Corporation, that sum was paid to discharge the earlier loan of
$61,300, together with interest of $38,700, by Leslie Corporation to Lowanna Pty. Ltd. In the same month, Leslie Corporation paid $100,000 to Waverley Park Stud Pty. Ltd. Mrs. Hinze deposited the cheque into the bank account of that company, noting on the deposit book that it was a “deposit on purchase of Waverley Park unconditional contract fallen through”. Waverley Park Stud was then and still is the domestic residence of Mr. and Mrs. Hinze, and there was never any intention to sell it to any of the companies in the Leslie Corporation group. An unstamped document described as an “option to purchase” and signed by Hinze and Mrs. Hinze over the common seal of Waverley Park Stud Pty. Ltd. was produced to this Inquiry. According to that document, the option had not expired by April 1983 and was available for exercise until 30 June 1983. Inconsistently, an unsigned form of contract annexed to that document required that any sale to arise from any exercise of that option was to be completed by 31 July, 1982, more than eight months prior to the banking of a cheque for $100,000 into the Waverley Park Stud Pty. Ltd. bank account. In May 1983, Leslie Corporation made a further payment of $35,000, this time to Lowanna Pty. Ltd. According to the records of Leslie Corporation that payment was a loan. In August 1983, Leslie Corporation wrote to Waverley Park Stud Pty. Ltd. in terms which suggested that the option was still current and had been extended to 31 December 1986 in return for $35,000. A further $35,000 from Leslie Corporation was paid into the bank account of Waverley Park Stud Pty. Ltd. on 10 October, 1983. According to Langsworth, there was an extension of the option in consideration of the sum of $70,000 comprised of $35,000 by way of release of the loan to Lowanna Pty. Ltd. and a further payment of $35,000. Hinze agreed that the total amount received from Leslie Corporation in the period in question was $170,000 and that at least $100,000 of that amount was not repayable.
(v) Bill Acceptance Corporation Ltd.
Although Hinze did not become the Minister for Racing until late in 1982, he had ministerial responsibility for racing from the end of 1980. As such, he was responsible for Racing Development Fund, which was established in mid 1981 to facilitate an extensive racing development programme in Queensland and for that purpose needed to borrow large sums which it serviced from income derived from the clubs and the Totalisator Administration Board. On 18 June, 198 1, Bill Acceptance Corporation Ltd. approved a loan facility of $500,000 for Lowanna Pty. Ltd., and a first instalment of $178,772.41 was paid to Lowanna Pty. Ltd. on 17 July 1981. On 6 August, 1981, a Bill Acceptance Corporation Ltd. officer attended a meeting of the members of the Racing Development Fund at which Hinze was present in his ministerial capacity. The finances and borrowing requirements of the Racing Development Fund for the redevelopment of a number of racecourses were discussed.On 11 November, 1981, Bill Acceptance Corporation Ltd. approved a loan facility of $275,000 for Kanni Pty. Ltd., and the first payment of $161,910 was made on 4 January 1982. On 24 February 1982, Hinze, Mrs. Hinze, and the Bill Acceptance Corporation Ltd. officer who had attended the meeting of the Racing Development Fund members met to discuss the personal requirements of Hinze and his associated interests. $10 million Albion Park redevelopment programme. The Bill Acceptance Corporation Ltd. officer noted:
“Building tenders are to be called in March with construction to commence in April 1982”. On 7 April, 1982, Bill Acceptance Corporation Ltd. agreed to provide a $5 million facility to the joint venturers in respect of the Gemini Court project. On 18 June, 1982, the trustees of the Albion Park Paceway resolved to accept a tender by Bill Acceptance Corporation Ltd. for a loan of $10 million for the Albion Park redevelopment programme. Subsequently, on Hinze’s recommendation, Cabinet approved the transaction, and the money was lent by Bill Acceptance Corporation Ltd. on 10 August, 1982.
(vi) George Herscu
In about August 1982, the Brisbane City Council gave approval for the development of a shopping centre at Sunnybank. The approval was subject to certain conditions which restricted vehicular and pedestrian access. The centre opened in July 1983, but a fence inhibited pedestrian access and there were restrictions on the methods by which vehicles could enter and leave the site. By October, 1983, Hersfield Developments Corporation Pty. Ltd., a company associated with George Herscu, had purchased the shopping centre, and was then concerned at the commercial consequences of the access difficulties. Approaches to Brisbane City Council proved unsuccessful, and Herscu approached Hinze with whom he shared an interest in horse racing. On 21 November, 1983, Herscu’s solicitors, Messrs. Cooper Korbl & Co., forwarded $50,000 which was paid into the trust account of Hinze’s solicitors, Messrs. Short Punch & Greatorix. In their letter dated 21 November, 1983 Herscu’s solicitors had stated that the money was advanced “ ... for six months at 15 per cent per annum payable on repayment of the deposit at the end of six months on 22 May 1984”. Reference was also made in that letter to a further loan to be made to “one of your clients”. The amount received was provided by Hinze’s solicitors to Kanni Pty. Ltd. Hinze actively involved himself in attending to the access difficulties at the shopping centre. In December, 1983, Hinze approached the then Commissioner of Main Roads and requested him to consider the possible methods of overcoming the problem. On 19 December, the Commissioner of Main Roads wrote to the Town Clerk of the Brisbane City Council stating that Hinze had asked him to inform the Town Clerk that he supported a review of the access. On 22 December, a second instalment of $50,000 was paid by Cooper Korbl & Co. to Hinze’s solicitors, who again paid the sum to Kanni Pty. Ltd. On 13 March, 1984, Mrs. Hinze sent her solicitors an acknowledgement of debt under the common seal of Kanni Pty. Ltd. which provided for $50,000 to be repaid on 22 May, 1984, and $50,000 to be repaid on 19 June, 1984. The matter of the access to the shopping centre was finally resolved in mid-October 1985, when the Brisbane City Council accepted in principle the proposed changes. No demand for repayment of the loan was made until 30 August, 1988, during the course of this Inquiry. By November, 1988, no amount of principal or interest had been repaid.
(vii) Kevin Will Seymour
Seymour is a property developer and friend of Hinze, with whom he shares a common interest in racing. Seymour is, or was, the Chairman of the Albion Park Trotting Club. He was appointed by the Governor in Council variously a member of the Queensland Trotting Board, a member and Deputy Chairman of the Queensland Harness Racing Board and one of three trustees of the Albion Park Raceway during the period that Hinze had ministerial responsibility for racing. In late 1985, a Hinze company, Oxenford Tavern Holdings Pty. Ltd., was attempting to sell a property which it owned near its Oxenford Tavern. The property for sale was a shop which was subject to a lease and was operated as a “Big Rooster” food outlet.Between 23 December, 1985 and 18 February, 1986, Seymour Developments Pty. Ltd. paid amounts totalling $320,000.00 to Oxenford Tavern Holdings Pty. Ltd. In January, 1986, Seymour received from his solicitors a draft contract for the purchase of the property for $320,000 with completion on 2 February, 1986, together with documentation appropriate for the transfer of the property, with the name of the transferee left uncompleted. Seymour’s solicitors advised him that the contract had to be lodged for assessment of stamp duty within one month of execution. No contract was ever signed, but there was evidence asserting that a memorandum of transfer was executed and handed by Mrs. Hinze to Seymour together with a certificate of title to the property. No documentation was stamped until after the conclusion of the evidence at the public sittings of this Inquiry, and no transfer was registered. Oxenford Tavern Holdings Pty. Ltd. remained the registered proprietor of the property and continued to receive rent from the lessee. In mid 1987, Oxenford Tavern Holdings Pty. Ltd. sold the property to a third person, to whom the property was transferred.On 29 June, 1987, Oxenford Tavern Holdings Pty. Ltd. repaid $320,000 to Seymour by a bank cheque. No interest was paid. On the same day, Seymour gave a bank cheque for $150,000 to Mrs. Hinze which she deposited into her bank account. On the same day, she drew a cheque on her bank account for $150,000. On 15 March, 1988, during the course of this Inquiry, $150,000 plus interest was repaid to Seymour.
To be continued.........
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