Laurie Connell
Encyclopedia
Laurie Connell was a Western Australian business entrepreneur. He was well known for his dealings with the Government of Western Australia
Government of Western Australia
The formation of the Government of Western Australia is prescribed in its Constitution, which dates from 1890, although it has been amended many times since then...

 and his close relationship with the then Premier of Western Australia
Premier of Western Australia
The Premier of Western Australia is the head of the executive government in the Australian State of Western Australia. The Premier has similar functions in Western Australia to those performed by the Prime Minister of Australia at the national level, subject to the different Constitutions...

, Brian Burke
Brian Burke
Brian Thomas Burke was Labor premier of Western Australia from 25 February 1983 until his resignation on 25 February 1988...

, during the WA Inc
WA Inc
WA Inc was a political scandal in Western Australia. In the 1980s, the state government, which was led for much of the period by premier Brian Burke, engaged in business dealings with several prominent businessmen, including Alan Bond, Laurie Connell and Warren Anderson...

 period in the mid to late 1980s as chairman of the Rothwells merchant bank.

In 1994, Connell was jailed for conspiring to pervert the course of justice by paying a jockey to leave the country.

Danny Hobby

At the January 1983 AHA Cup in Bunbury
Bunbury, Western Australia
The port city of Bunbury is the third largest city in Western Australia after the State Capital Perth and Mandurah. It is situated south of Perth's central business district...

, jockey Danny Hobby jumped from his mount Strike Softly. Hobby later claimed he jumped after accepting a bribe of $5,000 from Connell to do so.

Almost a decade later, it was alleged that Hobby was paid over $1 million by Connell to travel around the world for several years to avoid returning to Australia and facing an inquiry. Ultimately Hobby did return and Connell was tried and sentenced to five years' jail for conspiracy to pervert the course of justice during the investigation into the horse race. Hobby received a three-year term. Found not guilty of fixing the race. Connell served one year in jail before receiving a work-release.

Rocket Racer

In the 1987 two-mile Perth Cup
Perth Cup
The Perth Cup is Western Australia's premier Thoroughbred horse race and is held at Ascot Racecourse on New Year's Day each year. It has been run since 1887....

, Connell's horse Rocket Racer ridden by leading Western Australian jockey J. J. Miller
J. J. Miller
John Miller is a former champion jockey and horse trainer. Miller rode more than 2200 winners in a career which started with his first win after just six races in 1947. He rode his last race in 1988 and then went on to a successful career as a trainer...

 won the race by nine lengths and couldn't be pulled up, doing nearly another lap of the course. Connell had backed the horse initially at long odds down to a 2/1 favourite and was believed to have collected $500,000 from bookmakers as well as the $210,000 prizemoney for the win. After the race he shouted drinks for the members' bar for several hours.

The horse's performance and subsequent collapse and death of unknown causes a few weeks later was never fully investigated or explained although it is generally assumed that it had been injected with etorphine
Etorphine
Etorphine is a semi-synthetic opioid possessing an analgesic potency approximately 200 times that of morphine. It was first prepared in 1960 from oripavine, which does not generally occur in opium poppy extract but rather in "poppy straw" and in related plants, Papaver orientale and Papaver...

 ("elephant juice"). Rocket Racer was trained by Buster O'Malley, but another Connell owned horse trained by George Way, had tested positive to etorphine a few weeks earlier which had led to a long disqualification for Way.

Rothwells

During the 1980s, Connell started acquiring numerous local businesses through aggressive takeovers before setting himself up as a deposit taker for investors under the name of Rothwells Merchant Bank, which had begun its life as a Brisbane-based menswear chain. Immediately after the 1987 stock market crash, there was a run on the bank from local investors. Connell put together a rescue package involving numerous Australian businessmen and approached the premier, Brian Burke, who provided a A$
Australian dollar
The Australian dollar is the currency of the Commonwealth of Australia, including Christmas Island, Cocos Islands, and Norfolk Island, as well as the independent Pacific Island states of Kiribati, Nauru and Tuvalu...

150 million government guarantee to provide short-term relief. Despite this, after Burke's resignation on 25 February 1988, incoming premier Peter Dowding
Peter Dowding
Peter McCallum Dowding SC was the 24th Premier of Western Australia, serving from 25 February 1988 until his resignation on 12 February 1990 after an internal party dispute....

 was required to enter very complicated and controversial dealings in an attempt to protect the government's interests. Rothwells ultimately went into liquidation, causing heavy losses to the government and Rothwells investors.A royal commission
Royal Commission
In Commonwealth realms and other monarchies a Royal Commission is a major ad-hoc formal public inquiry into a defined issue. They have been held in various countries such as the United Kingdom, Australia, Canada, New Zealand, and Saudi Arabia...

 later found that:
Mr Dowding, as premier, presided over a disastrous series of decisions designed to support Rothwells when it was or should have been clear to him and to those ministers closely involved that Rothwells was no longer a viable financial institution. This culminated in the decision to involve the Government, through WAGH, in the Kwinana petrochemical project as a means of removing the Government's contingent liability for certain of the debts of Rothwells. Electoral advantage was preferred to the public interest.


The political fallout from the collapse as well as other government dealings in the period dominated media and political discourse in Western Australia during 1990, and premier Carmen Lawrence
Carmen Lawrence
Carmen Mary Lawrence is a retired Australian politician; a former Premier of Western Australia and the first woman to become Premier of a State of the Commonwealth of Australia....

 ultimately called the royal commission in November 1990 to investigate. The enquiry became known as the WA Inc
WA Inc
WA Inc was a political scandal in Western Australia. In the 1980s, the state government, which was led for much of the period by premier Brian Burke, engaged in business dealings with several prominent businessmen, including Alan Bond, Laurie Connell and Warren Anderson...

royal commission and resulted in the jailing of Connell, Burke and a number of other involved parties.

Further reading

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