Harness Racing Victoria has been accused of a “monumental failure of governance” that led to the sport’s governing body losing control of its $100 million land asset at Melton.
Angry stakeholders claim HRV has borrowed so much money to keep the sport afloat over the past five years that it is now expected to hand over its 93-hectare land parcel at Melton to the state government.
Two sources familiar with negotiations, but unable to speak publicly, said the government had written to the HRV board telling it to sign over the Western Highway property, which is the site of Melton Entertainment Park.
HRV was accused of “financial mismanagement” in an explosive statement released on Friday by the presidents of a powerful group of harness racing bodies.
“Its loan borrowings from the government using our vacant land asset at Melton as collateral has all but forfeited a vital industry asset valued at $100 million.”
From then, HRV borrowed heavily against the land to prop up prize money and cover operating costs, owing the state government more than $40 million.