HORSE Racing Ireland will learn in the High Court on Wednesday what chance it has of recovering over €500,000 it is owned by cash handling firm Senaca.

The security company had the contract to look after cash at HRI’s racecourses, including money taken at the turnstiles and at the Tote. HRI would also regularly write a cheque in favour of Senaca to cover cash floats needed on racedays.

Senaca usually lodges the funds in its care to the appropriate bank account within a week but The Irish Field understands that payments were slower than usual to arrive in recent months. Then, a week before the Galway Races, a liquidator was appointed to the firm.

The liquidator has found that Senaca owes €2.5 million to 70 clients and there is just €800,000 in company funds. Of the €1.7 million shortfall, it’s thought that Irish racing accounts for €750,000 in missing funds.

A number of other ‘independent’ racecourses are also believed to have been adversely affected.

Brian Kavanagh, CEO of Horse Racing Ireland, said yesterday: “I can confirm that solicitors representing HRI have written to the liquidator and petitioned the High Court seeking the return of a sum of €536,000. This figure relates to Tote takings and floats at all tracks (€384,000) and gate receipts and cash takings at four HRI owned/associated tracks (€152,000) and covers a three-week period before Senaca went into liquidation.

“It is my understanding that a handful of other tracks and some bookmakers are also among the list of creditors with a total potential exposure for racing and racing related businesses of circa €700,000 to €750,000.”

“Since we were advised of the liquidation on July 23rd, HRI has made alternative security arrangements for cash in transit services. As the matter is before the High Court, to say anything more at this stage would not be prudent, other than that every avenue is being pursued to recover the outstanding monies.”

It’s thought that the only bookmakers affected are the on-course SP shops and not individual bookmakers.

One racecourse manager told The Irish Field: “The Senaca lodgements were getting later and later, I suspect they were using the June takings to settle May’s accounts, and so on. They simply ran out of road in July.

“There are questions to be asked of the financial regulator, the banks, insurance companies, and now the Revenue Commissioners have lodged a claim. They will make a movie out of this scandal when it is all over.”

Next Wednesday the liquidator will ask the High Court how he should proceed in dividing up the available funds between the outstanding creditors. Even if Horse Racing Ireland and the Tote are left out of pocket, they may well be reimbursed by their insurers. Smaller tracks may not be as fortunate.