AFTER months of trying to pinpoint exactly what went wrong, the interim board of the Katherine Sports and Recreation Club is ready to hand back the Giles Street property in the clearest indication yet that it has called last drinks for the final time.
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The Katherine Times revealed in June 2015 that almost $500,000 in cash reserves could not be accounted for, with the embattled club finally closing its doors six months later amid claims of financial impropriety.
On May 9, president Stuart Duncan explained that since the closure, the board had paid staff their entitlements and creditors about $300,000, in addition to onselling 19 old poker machines.
The Katherine Country Club paid $15,000 for “consumables and portable and attractive items” – including leftover alcohol – to provide additional capital for creditors, a move allowable under the Associations Act.
The biggest shock uncovered was that a mortgage had been taken out over the property – which is owned by the Northern Territory government – in 1987 and despite being repaid, had never been discharged.
“We’ve negotiated with the ANZ bank to remove its mortgage over the land, to provide the Department of Lands, Planning and the Environment with a lease of clear title,” Mr Duncan said.
“The board has notified the department of its intention to hand back the lease.”
The club’s remaining assets will be handed over with the property.
Mr Duncan added that, while financial impropriety could not be ruled out, a lack of governance – including an absence of budgets, financial reporting and policies – had been the major factor in the club’s downfall.
“The lack of general governance was the most disappointing thing," he said.
“It is clear that many decisions were made in the absence of planning, research and understanding of their long-term impact on the club, and its fragile finances.
“Assets and services were purchased or leased when the club had no idea if they could afford them.”
A spokesperson for the department said that it was too early to comment on the future of the property, but did not rule out that it could be sold.
“It is premature to talk about time frames until the current lease is surrendered and relevant investigations have taken place,” the spokesperson said.
Member for Katherine Willem Westra van Holthe helped secure $300,000 in NT government “bailout” funding for the club and said the fact it had made no difference was proof it had “had its day”.
He added that he wanted to see the community support the development of the sporting precinct operated by Katherine Town Council.
