Property portfolios<\/p>\n
The most valuable assets managed by sub-branches of the RSL around NSW are property.<\/p>\n
In total, the Deloitte report found property held in trusts by RSL sub-branches in the state were valued at almost $150 million.<\/p>\n
Many have sold their property assets for a huge windfall in the property boom that has engulfed Sydney and NSW in recent years.<\/p>\n
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North Bondi RSL. (ABC News: Adam Griffiths)<\/p>\n
Among the most picturesque is the North Bondi RSL club, which overlooks one of the most iconic locations in the country and is held in a trust by the local sub-branch.<\/p>\n
The Deloitte report detailed an instance in which its members attempted to offer a $750,000 annual rent reduction to the club that leases the site from the charity.<\/p>\n
While RSL sub-branches may own the land where an RSL club is established, it does not operate it.<\/p>\n
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North Bondi RSL club, which is one of several sub-branches to have been singled out for criticism in a secret report. (ABC News: Adam Griffiths)<\/p>\n
However, the Deloitte report detailed “significant conflicts of interest” within the sub-branch because members also held roles on the North Bondi RSL club board.<\/p>\n
“These dual roles have created an environment in which the interests of the sub-branch and club are often misaligned, leading to tensions and a lack of cohesive decision-making,” it said.<\/p>\n
The sub-branch offered the discount despite already operating at a loss of $130,564 the year the report was written.<\/p>\n
“RSL NSW is investigating governance concerns relating to the North Bondi RSL sub-branch and is liaising with representatives of the sub-branch to conduct an audit,” a RSL NSW spokesperson told the ABC.<\/p>\n
‘Fraud’, a $400k sculpture and Korean veterans<\/p>\n
Another of the claims singled out in the review involved claims of a “suspicious” invoice from the Pelican Flat sub-branch in Lake Macquarie.<\/p>\n
The report detailed how a company registered to a sub-branch member had billed the charity for unauthorised air-conditioning work.<\/p>\n
“The president of the sub-branch alleged that the [two members of the branch] had colluded to defraud the sub-branch of at least $44,000,” the report stated.<\/p>\n
The case was referred to NSW Police and was one of 18 matters presented by the RSL NSW to Deloitte as part of their review process.<\/p>\n
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Smithfield RSL attempted to spend $400,000 of charitable money on a sculpture. (ABC News: Adam Griffiths)<\/p>\n
Another allegation referenced by the auditor involved the Smithfield RSL attempting to spend $400,000 of charitable money on a sculpture.<\/p>\n
“The request was rejected, but the sub-branch attempted to pressure the NSW RSL through their local member of parliament, further exacerbating the issues,” the report said.<\/p>\n
“The failure to adhere to charitable guidelines for spending may also result in financial penalties or reputational damage to the sub-branch and RSL NSW.”<\/p>\n
At the Lidcombe sub-branch, which the report said was “primarily made up of” veterans from the Korean defence force, charitable funds were being raised for the foreign former soldiers.<\/p>\n
The RSL NSW was established in 1916 and overseen by an act of parliament supporting its work “exclusively reserved” for Australian veterans.<\/p>\n
“As a result, the funds raised and allocated for charitable purposes could not be legally applied to these members as they were not ADF veterans,” the report said.<\/p>\n
Their charter, which gives a sub-branch authority to operate, was eventually revoked.<\/p>\n
In Sydney’s inner west, the Enfield-Croydon sub-branch faced criticism after its members used funds to subsidise theatre trips and race days for “camaraderie”.<\/p>\n
The trips raised concerns, Deloitte said, because they were “considered member benefits rather than activities for the broader veteran community”.<\/p>\n
The report said the sub-branch had been “struggling with the mismanagement of charitable funds and the misuse of its assets” at the time.<\/p>\n
‘Honest administrative mistakes’<\/p>\n
In a statement, the RSL NSW said the charity relied on hardworking volunteers and that they were “veterans supporting veterans”.<\/p>\n
“RSL NSW has strong governance policies and procedures in place to support sub-branch office bearers to meet their regulatory obligations \u2014 and to identify and address issues,” the spokesperson said.<\/p>\n
“From time to time, honest administrative mistakes happen. When more serious concerns are identified by RSL NSW, appropriate action is taken.<\/p>\n
“This might include formal investigations, remedial action \u2014 and, where necessary, disciplinary action or referral to the Australian Charities and Not-for-Profit Commission and\/or police.<\/p>\n
“While it is not appropriate to comment on historical matters relating to individual sub-branches (particularly those that no longer exist), RSL NSW can confirm that in each case the board has intervened to ensure the expenditure of funds aligns with our charitable purpose.”<\/p>\n