QUEENSLAND'S racing industry bled almost $14 million last financial year under the direction of a board that included controversial former boss Bob Bentley and Labor powerbroker Bill Ludwig.
The size of the loss has been laid bare for the first time in a letter, obtained by The Courier-Mail, from the new Racing Queensland Limited chairman Kevin Dixon to Racing Minister Steve Dickson.
The $13.891 million consolidated loss is far worse than anticipated by the racing industry and follows the demise of the controversial Bentley era after a change of state government earlier in the year.
Neither the Minister nor Mr Dixon would comment but the correspondence shows Mr Bentley paid $1.5 million in RQL legal fees in the 10 months of the financial year while his board was in control.
Another $1.35 million was paid to four senior RQL executives under the terms of their contracts after they resigned following the state election.
The incoming RQL board has significant concerns regarding these contractual arrangements and referred the matter to both ASIC and the Crime and Misconduct Commission for investigation.
Previously Mr Bentley has said he had no concerns about the circumstances involving the contracts and he and the board had acted in the company's interests.
RQL's 2012-13 salary budget has been slashed to $13.4 million.
In the past three years RQL's salaries bill has jumped from $12.1 million to more than $16.2 million. This was largely driven by the centralisation of administration to head office control at Deagon.
Mr Dixon's letter states that the strategy was not matched by any key savings in local racing jurisdictions throughout the state.
Since 2005, the former RQL board's contribution to race clubs, which ensures their ongoing viability, has decreased in absolute terms.
After Mr Dixon's team assumed control in May, in the two months to the end of the financial year $3.2 million was distributed to race clubs for specific projects, mainly for workplace and public safety issues previously neglected.
The Bentley-controlled RQL's contentious decision to assume operational control of clubs at the Sunshine Coast and Rockhampton cost the industry a combined $4.8 million in 2011-12.
Under Mr Bentley, RQL invested $10.6 million on stabling and infrastructure at the Sunshine Coast.
Mr Dixon writes in the letter that he does not believe any comparative revenue can be generated to justify this expenditure and he expects the investment will be a burden to the industry for years.
The Courier-Mail understands the State Government is close to finalising its racing reform package.
Before the election, the Newman Government flagged it would bring racing integrity back under government control.
The position of Racing Integrity Commissioner will be created to have independent oversight of integrity issues. A Racing Disciplinary Board will replace the existing appeals committee set-up.
STORY SOURCE: THE COURIER-MAIL - NEWS LIMITED.