Loading
Police followed Lababidi to a storage facility in Abbotsford, where he spent five minutes before returning to Kanga’s property, still carrying the backpack.
Lababidi was then tailed to his home.
Investigators later staged raids that uncovered almost 22.7 kilograms of cocaine in the storage locker and $118,500 in cash and a key to the locker hidden inside a hot water system in Lababidi’s home.
The satchel was also recovered and tested positive for cocaine. The street value of the cocaine was estimated at $13 million to $17.5 million.
At the time, Kanga’s East Melbourne house was raided by authorities. They did not find any suspicious items.
In March 2015, Lababidi pleaded guilty to trafficking in a drug of dependence and dealing with the proceeds of crime and was sentenced to 12 years’ jail, with a non-parole period of seven years and six months.
Lababidi told The Age that Kanga had “no involvement” in his criminal operation. “He was like an innocent bystander. He just got caught in the crossfire (because of the car).”
Lawyers for Kanga said: “Our client has no relationship with Mr Lababidi. The extent of our client’s contact with him was in a professional capacity when he was introduced to him through a licensed financial planner who indicated that Mr Lababidi sought to refinance several properties. There was no reason for Mr Kanga to believe that Mr Lababidi was engaged in any unlawful or criminal activity.”
His lawyers said the two had “intermittent contact” over about six months but entered into no financial arrangements. “On the last occasion they met, our client offered the use of a vehicle he was selling, and Mr Lababidi borrowed the car temporarily and did not purchase it,” Kanga’s lawyers said.
The information in this story was obtained from confidential sources, court records, financial documents and an official Australian Federal Police document obtained under freedom of information.
Kanga declined to comment to The Age after repeatedly seeking extensions of time to respond to questions since Tuesday.
Separately, financial records show Kanga had taken out loans in 2013 and 2016 with two people involved in the short-term, high-interest lending market. Kanga also had personal relationships with controversial figures in the racing industry.
“As someone with a long career in private finance and property, Mr Kanga has inevitably dealt with a wide range of counterparties and business contacts. All dealings have been conducted lawfully, transparently, and at arm’s length,” Kanga’s lawyers said. “Once it became apparent that certain counterparties or their associates were involved in activities inconsistent with his professional standards, Mr Kanga ceased all further contact with these individuals.”
In 2024, Kanga took control of the MRC, which is one of the wealthiest sporting clubs in the country as the owner of the Caulfield, Sandown and Mornington racing clubs and a significant pokies operator.
The MRC did not respond to questions from The Age.
John Kanga with patrons spruiking the cheaper food options during a meeting at Sandown Racecourse in January.Credit: Getty Images
Kanga’s shock resignation plunges the club back into turmoil on the eve of its lucrative spring carnival and just a week out from the $5 million Caulfield Cup.
The MRC board named vice chairman Cameron Fisher as Kanga’s replacement at its emergency meeting on Friday afternoon.
In a statement released by the MRC on Friday, Kanga said: “In recent weeks there has been a series of public attacks directed at me personally. While I completely reject the nature and accuracy of those attacks, I do not want them to distract from the club, its members, or the excitement of the Caulfield Cup carnival.
“My decision to step aside is about putting the interests of the club and the broader racing industry ahead of my own. The MRC is bigger than any one individual, and I want to ensure the focus remains where it belongs – on racing, our members, staff, and delivering a world-class Spring Carnival.”
The Age revealed that 24 memberships linked to Kanga and his family were purchased by a single credit card in the lead-up to the MRC’s bitter boardroom battle last year, when he seized control of the $1 billion sporting club. The MRC denied the block of memberships affected the outcome of the club’s September elections and said they did not breach any rules.
His abrupt departure comes a little more than a year after he launched his takeover bid. He formed the Save Our MRC movement and filed a motion for a special general meeting to spill the board.
Kanga, who first joined the MRC board in a casual vacancy in 2023, seized control of the club after last year’s annual general meeting.
The election of policy-aligned candidates Cameron Fisher and Sheamus Mills handed his group the balance of power, and he was named chairman at the end of September 2024.
Seven MRC directors have departed the club since Kanga began his leadership tilt in August last year: former chairman Matt Cain, former vice chairman Nick Hassett, former treasurer Jill Monk, along with Mark Pratt, Brooke Dawson, Scott Davidson and Barbara Saunders.
The executive team was also stripped bare. MRC chief executive Josh Blanksby resigned in August last year when it became clear the make-up of the board would change.
He was followed out the door by six other executives and, later, the new chief executive Tom Reilly, who was sacked on the King’s Birthday weekend in June.
Three sources, who wished to remain anonymous because they did not speak on behalf of the MRC, said Reilly had raised concerns with MRC leadership about probity and governance at the club.
Saunders resigned from the board after learning that Reilly would lose his job.
“I resigned because I had concerns about the lack of governance at the club and the removal of Tom Reilly from his position as CEO because, in my opinion, he was performing the role very well,” Saunders said at the time.
Melbourne Racing Club former chairman John Kanga.Credit: Eddie Jim
After assuming the chair, which is an honorary position, Kanga became an instant hit with members.
He abolished the Caulfield Masterplan, saved Sandown Racecourse, returned the mounting yard to its original position and scrapped a proposed $230 million grandstand.
He introduced cheap drinks, a discounted end-of-year membership and shouted the racecourse free beer and wine after cult hero Pride Of Jenni won her comeback race.
He won over trainers by opening up Caulfield’s new inner track for much-needed trials, and was popular among jockeys for handing out free race-day skivvies that advertised his finance company, Metropolitan Capital.
In the club statement, acting-CEO Tanya Fullarton said Kanga’s “decision to step aside reflects his deep respect for the club and its members”.
Fullarton, who previously worked alongside billionaire owner Jonathan Munz on the Thoroughbred Racehorse Association board, was appointed as the MRC’s chief operating officer on the same weekend Reilly was sacked.
