AGY-4965 | Royal Commission of Inquiry In Respect Of Certain Matters Relating to Allegations of Organised Crime in Clubs

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A Royal Commission of inquiry in respect of certain matters relating to allegations of organised crime in clubs was established by Letters Patent on 20 August 1973. The Honourable Mr Justice Moffitt was appointed as Commissioner. (1)

The Original Terms of Reference for the Commission were to investigate:

(1) Whether the reports tabled by the Premier of New South Wales in the Legislative Assembly on 22 November, 1972 and the files upon which they were based and any other relevant departmental files disclose sufficient reason to take proceedings against any person in respect of alleged organised crime in or in relation to clubs registered under the Liquor Act, 1912, as amended, or under the Gaming and Betting Act, 1912, as amended and if so, whom?
(2) (a) Whether there has been any attempt by the Government of New South Wales, …..to ‘cover up’ the existence of such crime or the identity of any person responsible?
(b) Whether there has been …… any other relevant attempt to cover up’ the existence of such crime or the identity of any person responsible?

The files referred to in the foregoing provisions of these Letters Patent shall be taken to include the letter dated the 30th May, 1972, the summary of information accompanying that letter, and the letter dated the 8th November 1972, from the Commissioner, Commonwealth Police Force, addressed to the Commissioner of Police, Sydney, on the matter of organised crime of the kind referred to above, if the appropriate Commonwealth Authority agrees to their production to the Commission.

Term of reference 2 was subdivided by the Commissioner into Term 2 (a) and (b) for convenient reference. (2)

The Commission held 84 hearings, which included ten in camera hearings. The Commission commenced hearings on 22 August 1973. (3) 296 exhibits were tendered to the Commission. (4) The period of the Commission was extended initially on the request of the Commissioner until 20 December 1973 and finally to 20 August 1974. The terms of reference of the Commission were also extended on 5 December 1973. (5)

The Extended Terms of Reference of the Commission were to investigate:
(3) Whether matter disclosed in the course of the inquiry into Terms (1) and (2) provide sufficient reason to determine that the Bally Corporation of America or its Subsidiaries Bally Australia Pty Limited, by its continued or future operation in New South Wales, offers a risk of infiltration of organised crime into or in relation to Clubs referred to in Term (1) (6).

Findings:In an interim report, submitted by the Commissioner to the Governor on 13 March 1974, he indicated the need for an extension of Commission in order to continue his investigations. The Commissioner applied to the Premier for an extension of time for the Commission on 8 March 1974. (7)

The Commissioner did not find sufficient evidence in the reports tabled by the Premier in Parliament, or any related files, to take criminal proceedings against anyone in relation to allegations of organised crime in New South Wales Clubs. Therefore, the Commissioner found in the negative against Term of Reference 1. (8)

The Commissioner concluded that there was “no basis at all to support a positive answer to Term 2A. On the contrary, it appears positively that the Government uncovered all the available material from police sources, so far as was practicable in the circumstances.” (9) The Commissioner also concluded that there was no admissible evidence that anyone in the Police Force (as defined under Terms of reference 2B) attempted to cover up evidence of organised crime in New South Wales Clubs. Therefore, the Commissioner found in the negative against Term of Reference 2. (10)

However, the Commissioner concluded that the risk of organised crime infiltrating clubs in New South Wales was too great, if the Bally Corporation of America or its Australian Subsidiaries continued to be allowed to operate in New South Wales ” as it appears that some clubs are so vulnerable and the History of Bally has been such, and the removal of organised crime from casinos (Las Vegas) and clubs (England) once there, has been so near impossible, that any takeover by and any expansion of Bally would constitute a risk of the type referred to, which cannot afford to be taken “. (11) Therefore, the Commissioner found in the positive against Term of Reference 3. (12)

The Commission ended with the publishing of the final report on 1 August 1974.

Endnotes:
(1) Report of The Royal Commission of Inquiry into Certain Matters Relating to Allegations of Organised Crime in Clubs p.1 NSW Parliamentary Papers 1974 – 1975, Vol.5, p.873
(2) Loc. cit.
(3) Royal Commission of Inquiry In Respect Of Certain Matters Relating to Allegations of Organised Crime in Clubs: Commissioner’s records, 1973 – 1974. Transcripts, 22 August 1973 – 19 March 1974 and Confidential Transcripts 4 July 1973 – 24 January 1974 , SRNSW ref 6/4417B (NRS 1597)
(4) Royal Commission of Inquiry In Respect Of Certain Matters Relating to Allegations of Organised Crime in Clubs: Records of the Commission, 1973 – 1974. Lists of Exhibits and M.F.I documents, SRNSW ref 6/4418 (NRS 1597)
(5) Report of The Royal Commission of Inquiry into Certain Matters Relating to Allegations of Organised Crime in Clubs, op.cit, p. 1
(6) Loc. cit
(7) Ibid. p.142, Schedule A
(8) Ibid pp 16 – 19
(9) Ibid pp.39
(10) Ibid pp. 39 – 92
(11) Ibid p. 135
(12) Ibid p. 138