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Operators of two pubs in Western Australia's Kimberley have been hit with more than $100,000 in fines after police alleged they breached liquor licensing rules more than 2,000 times.
Western Australia's Liquor Commission fined the operators of Derby's Spinifex Hotel and Boab Inn $60,000 and $30,000 respectively.
The director of both venues, Perth-based businessman Emanuel Brian Dillon, was hit with an additional $50,000 fine.
The two venues will be permitted to remain operating, and Mr Dillon will keep his licence.
The investigation was sparked by a complaint from police, who alleged there had been 2,752 breaches of the liquor act across both venues.
Police also alleged the Spinifex Hotel had become a source of alcohol being illicitly trafficked to dry communities such as Halls Creek.
The Boab Inn was fined $30,000 for breaching liquor restrictions. (ABC Kimberley: Dunja Karagic)
"The direction to sell liquor that is suspected to be for the purpose of sly grogging to Halls Creek evidences a disregard, if not lack of respect, for the conditions seeking to address serious community problems with alcohol consumption in Halls Creek," lawyer Toby Bishop of the State Solicitor's Office representing the Commissioner of Police said in his submission.
The complainant alleged Mr Dillon was not a "fit and proper" person to hold a liquor licence due to poorly-run state of both pubs.
"[Mr Dillon's] inability to properly manage and ensure compliance with the COVID liquor restrictions exemplifies his lack of fitness and propriety," the complainant said in his submission.
"He has shown a blatant disregard of his duties as a person who holds the controlling position of authority in a licensee.
"He has done no more than the bare minimum to ensure [the two pubs] will comply with their licence conditions."
The Kimberley, including Derby, boasts some of the toughest liquor restrictions across Western Australia, including daily purchase limits and restricted hours of sale for takeaway alcohol.
'Did not know'
The respondents told the commission there was insufficient evidence to support the finding of routine sly grogging from the Spinifex Hotel.
Emanuel Dillon was fined $50,000. (ABC Kimberley: Andrew Seabourne)
Lawyer Peter Fraser, representing both venues and Mr Dillon, told the commission he "did not" and "should not" know about the alleged breaches.
"At no time did it occur to [Mr Dillon], nor did he have reason to believe that management were not complying with the COVID liquor restrictions," he said.
Mr Dillon told the ABC he knew he was ultimately responsible for the venues but he employed staff who had an approved managers licences with no bad history.
"I couldn't manage the business any closer than I did at the time because the Spinifex Hotel was positioned in Derby and there were restrictions, I wasn't allowed to travel there," he said.
Mr Dillon said he did not agree with the decision and was exploring his options to appeal.
"I believe I did everything I could to protect the community against anything that we may or may not have done wrong and I stand by that," he said.
"I don't believe if I had my time again there's anything more I could do."
Commission's findings
The commission noted difficulty in dealing with the respondents during the inquiry.
"The continual refusal to provide requested evidence, spurious pleadings made and excuses for non-compliance provided have unreasonably delayed this matter and required significant expenditure by the commission," the decision read.
"The respondents' actions do not give confidence that the respondent has a proper regard for the expected industry standards."
Mr Dillon said he disagreed his actions had delayed the process.
"It's ridiculous the time it's taken for them to make this decision and it's not something that we have delayed the process in," he said.
"I do deeply care for the Derby community and do whatever we can for the community, which is why this is an emotional thing for me."
The commission found there was cause for disciplinary action on five of the grounds put forward by the police commissioner, including breaches of the act and a disregard for public interest.
Mr Dillon's lawyer told the commission he did not know about the alleged breaches. (ABC Kimberley: Andrew Seabourne)
However, it did not find Mr Dillon was unfit to hold a licence, stating while his conduct "leaves a lot to be desired", it "does not reach a level of sufficient seriousness" to consider him "not fit and proper person as contemplated under the Act".
It found the "numerous and repeated" breaches by the Spinifex Hotel justified a more significant fine than it handed to the Boab Inn.
Spinifex Holdings is subject to further action for the forfeiture of illegal gains made during restrictions in 2020, with a decision expected to be published early next year.