Independent Senator Jacqui Lambie has accused unnamed figures within the NSW RSL of trying to drive out the league's CEO Glenn Kolomeitz, who has spearheaded the recent efforts to reform its finances and investigate past alleged improprieties.
Senator Lambie, a former soldier who is pushing for improved veterans services, posted on Facebook a defence of Mr Kolomeitz and suggested that "bullying" was going on inside the organisation.
"Glenn took the job at enormous financial and personal sacrifice. A select group trying to drive him out are denying the RSL NSW of many mission-funding initiatives developed by Glenn," Senator Lambie wrote.
"Stop the bullying and get behind this younger veteran."
Mr Kolomeitz, a lawyer and former soldier who served in East Timor and Afghanistan, took over as RSL NSW state secretary and CEO in August 2015, partly in the hope he would attract much-needed younger veterans who have largely stayed away from the organisation.
He announced a forensic audit into RSL NSW spending last September that rapidly spread and sparked other probes that have ensnared the national president Rod White - who has stood aside - and former NSW president Don Rowe as well as other senior figures.
Fairfax Media has been told by multiple sources that there is a push by some NSW state councillors - who are now under pressure from the national council to resign en masse - to get rid of Mr Kolomeitz.
It is understood one councillor sent an email to the northern district council of the state branch accusing Mr Kolomeitz of going to "the dark side".
Mr Rowe is being investigated by police over $475,000 he spent on his RSL credit card over a six-year period, including more than $200,000 while also paying for mobile phones for five family members.
Fairfax Media can reveal Mr Rowe withdrew $5200 in cash in one month around the end of 2013, including $2300 in 17 days over the Christmas and New Year period in his home town of Armidale, according to a forensic report by auditors KordaMentha.
The card was for conducting business as state president.
Mr White and several other former and current NSW councillors are being investigated by the charities watchdog for receiving hundreds of thousands of dollars in consulting fees from the league's aged care arm for work that has never been explained.
Mr Kolomeitz said: "I greatly appreciate all support provided in helping get RSL NSW back on mission and focussed on our core reason for being, which is the care and wellbeing of veterans and their families.
"And I'm glad to see Senator Lambie is across the need to fund our core mission which is where all that money should be going."