RSL NSW hit by fresh allegations of misconduct; claims members threatened about speaking out
Posted
There are fresh allegations of misconduct in the crisis-plagued RSL and claims that members of the New South Wales branch have been threatened about speaking out.
Key points
- Auditor's report raises concerns over $2.5m in payments to some RSL LifeCare directors
- Questions raised over company car purchases and interest free loans for members
- Claims RSL NSW members intimidated when it comes to speaking out against leadership
Members, including a 99-year-old war veteran, have told Lateline they are disgusted with the RSL's leadership and they fear it could be the end of the organisation.
Police, the Australian Charities and Not-for-Profits Commission, NSW Fair Trading and Attorney-General's departments are investigating the NSW branch over claims of fraud, misappropriation of funds, profiteering and cover-up, in some cases going back a decade.
With Anzac Day just over a fortnight away, the NSW Minister for Veteran's Affairs, David Elliott, has taken the extraordinary step of calling for senior members under suspicion not to take part in Anzac services in any official capacity.
"I'm very upset to think that people who are under investigation do not do the right thing and stand aside and let others lead the march or others lead the activities of the RSL until the air is cleared," he said.
That would include the current state president, John Haines. Last week senator Jacqui Lambie told the Senate there were allegations Mr Haines:
"... took payment for his voluntary work at Granville RSL sub-branch; allegations the current state president also attempted to launder funds through the RSL welfare trust to bolster support for him in the election of state president...
"It now appears the state president and his cronies are attempting to bury these matters by disengaging the forensic investigators ordered to look at these and many other allegations before the investigation is complete."
Auditor's report reveals millions of dollars in payments
Lateline has been told that anyone criticising the RSL's leadership has been stonewalled, bullied or threatened with loss of position or loss of life membership.
A number of the allegations of misconduct relate to the RSL's $1.3 billion aged care charity, RSL LifeCare.
It has already been revealed that the former federal president of the RSL, Rod White, former state president Don Rowe, and several other state councillors received a share of millions of dollars in "consultancy fees" from LifeCare while also serving on that charity's board.
A 36-page report by Korda Mentha forensic auditors, obtained by Lateline, found that LifeCare directors received more than $2.5 million in consultancy fees from 2006 to 2016.
In its 2016 report, Korda Mentha highlighted concerns about these payments, saying that:
"RSL LifeCare holds a charitable fundraising licence and as such there is a requirement under NSW law for each paid consultant or RSL LifeCare director to receive prior written approval from the Minister before accepting consultancy fees."
The auditors said no such approvals were provided until 2015.
Claims of cars and interest free loans
Captain James Brown, one of the younger members of RSL NSW who is also a candidate for president and treasurer, said there were further questions about how money from RSL LifeCare was spent.
"Where the money was going, including questions about some members who were getting interest free loans, which may or may not have been paid back," he said.
"There are questions now about the purchase of company cars. It seems like company cars were bought for staff internally and turned over a little bit too quickly."
RSL LifeCare has denied any wrongdoing and told Lateline that directors do not receive remuneration for their role as director, but some "are paid separately to assist the management team on projects that typically fall outside the responsibility of unpaid directors."
Members shaking with rage
Since the crisis hit, donations to the RSL NSW are down and an insider said that half of the 38,000 members have not reapplied.
Rank-and-file members are angry and frustrated by the lack of transparency from leadership and at a recent meeting of sub-branch presidents in Newcastle, some were literally shaking with rage.
Ninety-nine-year-old Alfred 'Alf' Carpenter OAM, faced the Nazis in Libya, Crete and Palestine during World War II, said he was disgusted with the organisation's leadership.
"I'm appalled that any member of the RSL of Australia, NSW state branch acted in that capacity. For them to do that to their own members it's appalling," he said.
"I'm disgusted with every one of them."
Syd Lynch still carries physical scars from surviving the bombing of the HMAS Hobart during the Vietnam War.
"It's disgusting, absolutely disgusting. We're not let known anything. We're not told anything about what's going on down there [at headquarters in Sydney]," he said.
Ron Mitcherson was a machine gunner in Vietnam who went on to become a detective. He said he was worried for the future of the organisation.
"It could be the demise of the RSL, to be quite honest," he said.
"It feels very sad."
Mick Bainbridge is another young digger who wants to bring new blood to the RSL.
He said the scandal was hard to stomach and he thinks it is far from over.
"I think as the enquiries and the investigations move forward they are going to uncover more of these ridiculous expenses, more of these unjustifiable expenses," he said.
"I think the members are angry. Veterans are angry. Our members and our community deserve better."
Watch the story tonight on Lateline at 9.30pm AEST on ABC News 24 or 10.30pm on ABC TV.
Topics: charities-and-community-organisations, defence-industry, defence-forces, defence-and-national-security, charities, nsw, australia
