FORMER Racing Queensland chairman Bob Bentley has been accused of trying to sack a board member who questioned a deal with gaming giant Tatts alleged to have cost the state's racing industry more than $91 million.

MICHAEL MADIGAN reports for THE COURIER-MAIL that Mr Bentley, who chaired Racing Queensland Limited under the former Labor Government, is on the stand for a third day in the $3 million Queensland Racing Inquiry held at the Brisbane Magistrates Court complex.

Mr Bentley has been repeatedly accused of allowing Tatts to save up to $91 million in a financial arrangement with QRL related to payments for race information.

Counsel Assisting James Bell, QC, has told the inquiry the arrangement cost the state's racing industry up to $500,000 a week.

Mr Bentley was also a board member of Tatts during some his tenure as QRL chairman and a friend of then Tatts chief Dick McIlwain.

He has also confirmed to the inquiry he owns shares in Tatts.

A former board member Michael Lambert has told the inquiry in a statement that on November 18, 2008, lawyer David Grace of Cooper Grace Ward wrote to Queensland Racing suggesting the arrangement with Tatts was illegal.

But Mr Lambert said the QRL Board did not pursue the matter.

"In my view the board of Queensland Racing was deficient in the pursuit of its duties in respect to this matter,'' Mr Lambert wrote.

"It obtained a legal advice that needed to be followed up but failed to undertake any action

to that effect.''

Mr Bell, suggested Mr Bentley wanted Mr Lambert removed from the board because of Mr Lambert's determination to pursue the legal advice.

"Mr Bentley decided it would be Mr Lambert who would go,'' Mr Bell said.

"The question is, why did he decide on Mr Lambert?''

Mr Bentley denied the accusation.

"I consider Mr Lambert was lazy, he was not engaged in the way he should be,'' Mr Bentley said.

The inquiry continues.

STORY SOURCE: THE COURIER-MAIL - NEWS LIMITED