Why John Kanga’s racing comeback could blow up the VRC boardroom

John Kanga has launched a bid to join the Victorian Racing Club board little more than 12 months after walking away from the racing industry amid a cloud of controversy.

Kanga put to bed weeks of speculation and personal denials that he would run for a seat on the VRC committee by lodging his nomination on Wednesday night.

Popular among racegoers, the colourful identity’s name adds extra spice to what is shaping as one of the most divisive and highly political VRC elections in the club’s history.

Kanga alerted media outlets first thing on Thursday morning with a statement, saying “I am not interested in making promises I can’t deliver”. Nominations close on Thursday.

He has also declared his campaign would not be aligned to Melbourne Racing Club vice chairman and influential racing figure Jonathan Munz, who took Kanga’s vacant seat on the MRC board last year.

“I am an independent candidate,” Kanga said.

“I respect Jonathan and agree with most of his views on what is best for the industry, but he is not involved in my campaign and did not encourage me to run as a candidate.”

There are four seats on the VRC board up for grabs. Chairman Neil Wilson is stepping away, leaving one vacancy, while three directors – chair-elect Vin Cox, treasurer Glen Carmody and Michael Saadie – are up for re-election.

More nominations for the board are expected by the close of Thursday.

If more than two people are deemed suitable to run, it will mean all four seats will go to the VRC members’ vote at the end of this month.

Changes will be announced at the club’s December annual general meeting.

Kanga resigned as Melbourne Racing Club chair on the eve of last year’s Caulfield Cup carnival after questions from The Age about loans and the use of his car in a 22-kilogram cocaine trafficking case in 2014.

Kanga said hehad resigned “to ensure the focus remains where it belongs – on racing, our members, staff, and delivering a world-class spring carnival”.

The Age does not suggest Kanga was involved in any criminal activity, and he has never been accused of any crime.

The Age reported last year that surveillance officers working on an investigation into “high-threat” money laundering, known as Taskforce Eligo, saw one of their targets, Assam “Sam” Lababidi, attending Kanga’s then-home and borrowing his car, according to an AFP report released under freedom of information.

Lababidi was followed to a storage facility. It was later raided and 22.7 kilograms of cocaine and $118,500 in cash was uncovered.

Lababidi, who was sentenced to 12 years’ jail, said Kanga had “no involvement” in his criminal operation.

Separately, financial records show Kanga had taken out loans in 2013 and 2016 with two people involved in the short-term, high-interest lending market. Kanga also had personal relationships with controversial figures in the racing industry.

During his time at Melbourne Racing Club, Kanga became popular among members after his board saved Sandown Racecourse from being sold for housing development, moved the mounting yard back in front of the Caulfield members’ stand and scrapped plans for a new $250 million grandstand.

But he also cut through with rank-and-file racegoers by cutting beer and food prices at MRC racetracks.

In his media statement, Kanga said: “My focus is simple. Better service, better value for money and a better race-day experience for VRC members at Flemington.

“I’ve never been one for sitting around the committee room when I could be out talking to members. You learn a lot more walking around the racecourse than you do sitting around a table.

“When I was chairman of the Melbourne Racing Club, we delivered better value for money on food, drinks and membership, and importantly, we listened to our members.

“Racing is also about the people who make it happen. Owners, trainers, jockeys, and other industry participants all have a stake in its future, and their voices need to be heard.

“I bring strong commercial experience, a deep understanding of racing and wagering, and relationships across the industry here and internationally.

“I want to get out there, work with members and the racing industry, and make a real difference.”

The race for a seat in the VRC committee room is shaping as one of the most hotly contested elections in the club’s history following the board’s decision to name Cox as Wilson’s successor before the AGM.

The Age quoted an inside source two weeks ago who claimed Cox was given the nod 6-5 – in a vote involving 11 directors, including Wilson and VRC CEO Kylie Rogers – over vice chairman Michael Ramsden.

But Cox needs to be re-elected before he can accept the role. He then has to reaffirm numbers at the boardroom table to quell speculation of a coup.

In theory, a 6-5 vote in favour of Cox is easily reversed with at least one director being replaced.

Any change to the board also has ramifications for the VRC’s future. Wilson was staunchly opposed to the club losing its tradition or identity by merging with the MRC or Moonee Valley Racing Club.

The Age reported last year that then MRC chairman Kanga met with Wilson at Munz’s Toorak mansion to discuss bringing Flemington and Caulfield racetracks under one administration. Ramsden also attended. But Wilson walked away not prepared to accept the proposal.

Kanga was still open to the possibility of Melbourne’s metropolitan club’s merging this week.

“The government and RVL [Racing Victoria] have encouraged club mergers and intuitively, there are big cost savings to be made,” he said.

“I have heard $30 -$50 million reported. The club executive and board would need to do proper due diligence first and have the support from members.

“If it did happen, you would apply part of the savings towards immediate benefits to members, such as lower food and drink prices.”

Kanga came under scrutiny in the weeks leading up to his MRC resignation last year.

The club was also criticised for not running due process before appointing Munz’s associate Tanya Fullarton as chief operating officer or hiring Munz’s track consultant Kenneth Neff.

The jobs were not advertised, and no interviews were held. Both are still at the MRC.

After Munz replaced Kanga on the board, Fullarton was appointed MRC CEO.

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