CLUB OFFICIAL BANNED AND FINED FOR COMPLIANCE FAILURES
Club officials are being reminded of their legal obligations and the importance of good governance after a president was banned for 12 months and fined $1,100 over conflicts of interest relating to companies he owned doing building works at a registered club.
The NSW Independent Liquor and Gaming Authority (ILGA) determined that Mr James Savage was not a fit and proper person to act as President of Erina Rugby League Football Club after a complaint was lodged by Liquor & Gaming NSW (L&GNSW). Mr Savage had held various board positions at the club from August 2011.
L&GNSW investigated Mr Savage after a complaint was made about invoices totalling $80,870 from 9 October 2022 to 8 January 2023 that were paid to two businesses owned by Mr Savage, SavBuilt Pty Ltd and Master of all Handyman Services, without tenders or quotes provided to the club’s board for approval.
A $90,000 quote from Savbuilt and JDS Building Services, another company owned by Mr Savage, to construct a deck at the club in 2017, was submitted for approval, but the final cost of the project was more than $450,000.
ILGA found Mr Savage failed to properly record conflicts of interest and should have been aware and disclosed the conflict of using his companies for the construction works at the club.
Mr Savage also failed to obtain competitive quotes and follow tender processes for the construction works carried out at the club.
L&GNSW Executive Director Regulatory Operations Dimitri Argeres said the penalties imposed by ILGA on Mr Savage, which included $31,147 for costs incurred by L&GNSW’s investigation, highlighted the legal responsibilities for those acting as club stewards.
“Clubs play an important role in the community and secretaries and board members are responsible for members funds and for the behaviour of their staff and colleagues,” Mr Argeres said.
“Saying there was a lack of governance knowledge among directors is not a defence.
“Liquor & Gaming NSW supports registered clubs to reduce fraud risk by providing education and advice on preventative controls, by monitoring compliance with the law, and by taking strong action when breaches are established.
“Registered clubs can strengthen governance by regularly reviewing compliance with the Registered Clubs Accountability Code, identifying high-risk areas, such as cash, gaming, procurement, and tender processes, implementing risk management frameworks, and establishing periodic internal or external audits.”
Mr Argeres said a recent determination by ILGA, arising from an L&GNSW investigation into the Dalmacija Sydney Croatian Club’s sale of its Terrey Hills property in June 2021, highlighted another example of poor governance within the club sector.
“L&GNSW investigated and made a complaint to ILGA that Mr Veljko Bosnic and Mr Tom Bosnic were not fit and proper persons to act as club secretary and director respectively, after receiving five complaints alleging the brothers sold the property without seeking approval from club members.
“ILGA found the ground of complaint was established and, while it determined not to take disciplinary action, considered that the Supreme Court’s decision requiring Messrs Bosnic to pay the club $250,000 was sufficient penalty in the circumstances.
“L&GNSW will continue to respond to reports of misconduct, monitor property transactions, as well as undertake proactive investigations, to uphold the integrity of the club sector and protect the interests of members and the wider community.”
ILGA’s decision on the complaints are available here: Disciplinary Decisions | NSW Independent Liquor & Gaming Authority
