A LETTER written by disgraced treasury official Godwin Grech which was used as a key piece of evidence in a Victorian Commission for Gambling Regulation hearing for Club Edgewater has come under fire.

A story by The Age last week questioned the contents of Mr Grech’s letter after no other Federal Government employee or document could back it up.

Western Bulldogs CEO Campbell Rose told the VCGR hearing in November last year that an $8 million Federal Government grant towards the Whitten Oval redevelopment was predicated on the removal of 48 gaming machines from Whitten Oval.

Mr Rose said the proposed entertainment venue was vital to the survival of the club, which had had trouble finding an appropriate existing venue to relocate the machines.

But the alleged condition was not detailed in the written agreement between the Bulldogs and the Federal Government.

At the request of Mr Rose and the VCGR, Mr Grech – who was at the centre of last month’s Utegate scandal – faxed through a letter using the Treasury letterhead confirming the money was conditional on the removal of the machines.

Mr Grech, who was working in Prime Minister John Howard’s department in 2004, handled the grant process.

The letter states that the removal of the gaming machines was a “key component” to the grant being approved, because the redevelopment would include a child care facility.

“I cannot emphasise this strongly enough – it was very important to the approvals process,” the letter states.

The letter, which is the only Federal Government confirmation of the grant condition, was faxed through at 10.02pm on 10 November 2008 – the same day the VCGR hearing had started.

In its decision to grant a gaming licence, the VCGR acknowledged that the agreement entered into by the Federal Government and the Bulldogs made no mention of the gaming machines, but accepted Mr Grech’s letter as accurate.

Last week, VCGR chairman Ian Dunn accepted - in hindsight - that the hearing should have sought more detail from Mr Grech.

Speaking with Star last week, Mr Rose said there was not another public servant that could verify any verbal or written agreement concerning the machines because of the change in Government after the 2007 Federal election.

“They were the terms and conditions on which the whole funding was put forward. We didn’t know what Godwin was up to, or what he was doing,” Mr Rose said.

Today is the final day of the Club Edgewater VCAT hearing. The Bulldogs are appealing against Maribyrnong City Council’s decision to refuse the planning permit for the development, and the council is appealing the VCGR’s decision to grant a gaming license. A decision is expected within the next few weeks.