Grothe Snr and 5 others recommended for disciplinary action

http://news.smh.com.au/rugby-league/parramatta-eels/parramatta-eels-great-eric-grothe-snr-investigated-over-meat-tray-deal-20141102-11fm6z.htmlParramatta legend Eric Grothe Snr could be expelled from the club with whom he won four premierships over a deal he had to sell meat trays to the club while he was a board member.Grothe snr is one of five officials recommended for disciplinary action in a damning Office of Liquor, Gaming and Racing report about Parramatta Leagues Club that runs to more than 6000 pages.Significantly, former chairman Roy Spagnolo and chief executive Bob Bentley have had the finger pointed at them for their "knowledge, involvement or acquiescence" of the tampering of memberships in the lead-up to last year's club election in an apparent bid to "manipulate the election of officers and maintain control of the club", which governs the NRL team.AdvertisementHowever, while Spagnolo and Bentley feature prominently over dozens of breaches of the Registered Clubs Act, others are not spared.Former PLC directors Grothe, Sid Kelly and Mario Libertini are like Spagnolo and Bentley deemed not "fit and proper" to be on a club board by the state government's industry regulator, with a recommendation made to the Independent Liquor and Gaming Authority that they be banned for three years from standing for a registered club election. A commercial arrangement between Grothe's company Grothe Meat and Raffle Trays - or 'Freshy's' - and Parramatta was an example of what the report describes as a failure by the five to "prevent individuals from obtaining a personal advantage from their involvement in a club". Grothe had been supplying meat to the club since 2010 but that was not disclosed prior to his election to the board in April 2012, nor to members in 2012. That year the club purchased $37,683 in meat from Grothe Snr, and a further $18,575 between January and May 2013, when he lost his seat on the board. Grothe signed a declaration of interest on March 28, 2013 but there was no recording of it in the board minutes and the club again failed to disclose the deal to members. Grothe, who continued supplying meat products after he was a director and remains on the Parramatta District Rugby League board, has 13 other charges below his name relating to the activities of the Spagnolo administration as a whole.The OLGR investigation also focused on a contract Libertini had to supply pizza dough from his Bankstown restaurant, La Piazza, for which the club paid $67,500 between 2011 and 2012. Bentley was requested by the board in April 2011 to "investigate and obtain the costs of the dough from suppliers, including La Piazza and determine the best price and value for money" and the next month entered into commercial arrangement with La Piazza without board approval of the contract or the proposed contract. Libertini did declare an interest in La Piazza to the board on the day that Bentley was asked to source dough but there was no disclosure to members. The club bought $28,009 in restaurant ingredients from Libertini's business in 2011, and $39,491 in 2012. Libertini resigned from the PLC and PDRL boards in May."I vehemently deny and I'll defend anything against me because I declared everything that I did in regards to the pizza dough supplied to the club," he said. "It's in the club financials. It was tabled at a board metting so I don't have a problem."Kelly, who like Grothe remains on the football club board under chairman Spagnolo, also had business dealings with the club while a PLC director between 2009 and last year. In 2010 his company Peter Kelly Flooring Pty Limited was hired to provide "flooring services" to the club amounting to $7132. In 2011, they were engaged again and paid $40,260 for more flooring work. According to the OLGR report Kelly declared an interest in the company to the board on August 30, 2011 but there had been no disclosure to members in 2010 and 2011.On Sunday he strongly denied any wrongdoing, saying he had previously pitched for jobs at the club but had always declared his interest in the business. "My company supplied some carpet through a builder in a tender situation. My company did the work but it was done through a subcontractor, Paynter Dixon. I didn't get the money through the club, I got paid through a subcontractor," Kelly said. "They called tenders for the carpet and I think they had three or four people quoted and we were the lowest price so we got the job. I absolutely refute any suggestion that there has been any impropriety either by myself or by my company. I believe that my actions were 100 per cent totally ethical."While the five have been sent show-cause notices by the Independent Liquor and Gaming Authority and have 28 days to respond, the club is also likely to be fined as much as $275,000. An Eels spokesman said: "The PLC is currently reviewing the large amount of information provided to us by ILGA and OLGR and will take further action when that process is completed."The improprieties include unauthorised travel and expense claims including one Spagnolo made for a Christmas party he hosted in 2011 and improper pay rises and bonuses paid to key staff, including one of $92,998 paid to Bentley after Spagnolo's bid to maintain control failed. While ILGA will decide on possible sanctions, the Eels are also likely to proceed with disciplinary action of their own, which could include memberships being torn up.Kelly and Libertini questioned why only four directors of the seven-member Spagnolo board have been singled out when most of the OLGR findings relate to actions of the entire board rather than individuals."Mario Libertini, he supplied some product for pizza bases, Eric Grothe supplied meat trays for raffles, I supplied some carpet and Roy supplied his place for the annual Christmas party," he said. "If they're going to say that we haven't administered the club correctly, why is it only four of us in error?" Kelly said. Grothe, Spagnolo and Bentley did not respond to requests for comment from Fairfax Media.

Dear Members of Parramatta Leagues Club and Supporters of the Parramatta Eels,

On Friday afternoon, I received correspondence from the CEO of the Independent Liquor and Gaming Authority (ILGA) detailing 16 grounds of complaint (with multiple examples within each ground) against the Parramatta Leagues Club (PLC), select members of the former PLC Board and a former executive of the company.

Based upon a lengthy and wide-ranging investigation from the NSW Office of Liquor Gaming and Racing (OLGR), ILGA have issued show cause notices against five individuals on the grounds that they are not fit and proper to be directors of a registered Club. OLGR has also recommended that the Parramatta Leagues Club face a fine of up to $275,000 as a result of the actions of these five individuals.

There are multiple breaches within the sixteen grounds of complaint and the charges against the individuals can be summarised as a systemic and concerted effort to avoid the most basic governance principles for personal gain. In addition OLGR have also found grounds for complaint against two of the individuals in relation to membership tampering before the PLC elections in May 2013.

It's important to note that the OLGR investigation is based upon information provided voluntarily by the Club in late 2013 and the Club provided further information to OLGR following the discovery of membership tampering in May of this year. The Club has already made regulatory compliance and governance a major priority over the 12 months and will review the OLGR documents to assess progress against these governance issues.

The following extract included with documents supplied on Friday by ILGA accurately captures the extent of their concerns:

The assessment also identified habitual disregard by the Club, Directors, and the Secretary to the Clubs membership of ClubsNSW and its Code of Practice and Guidelines and similar disregard to the Clubs own Directors and Executive Team Guidelines and other policies. The aggregated contraventions identified suggest a culture of regulatory non-compliance at the Club, with their own Director and Executive Management codes, policies and procedures rhetorical rather than practice.

In addition to the show cause notices, the Club was provided with a total of 6,149 pages of evidence including transcripts and other investigation material. After reviewing these materials and in light of the ILGA advice, I intend to progress a range of actions whilst continuing our cooperation with OLGR and ILGA.

These include

Suspension of current members issued with show cause notices
Commencement of disciplinary action against members adversely named in the report as contributing to regulatory or compliance breaches
Consideration of legal proceedings against members, individuals or businesses who obtained a financial benefit through these breaches
Defamation proceedings against individuals who have made malicious claims and harassed the current Board and management team during the investigation process.

I regret having to report these matters to members however I anticipate that with the ILGA's decision to progress these matters, the Club and the Eels can close this chapter and put all its resources into service delivery and football performance following the transformation strategy of the last 12 months.

Following a successful year which saw much change successfully implemented, I hope the future reports consist of less regulatory news and more about the positive changes the Club is making to benefit its members and guests.

Thank you all for your patience and continued support.

Bevan Paul
CEO
Parramatta Leagues Club

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Replies

sixtiesboy November 3, 2014 at 5:43am

Hopefully this will draw things to a conclusion. Even though the necessity of the investigation was obvious and a certain person needs complete removal, I hate seeing the club name continued to be sullied when stability seems on the horizon. Perhaps I'm just wanting a quick fix, but I see this dragging on through the courts now.
Yobz November 3, 2014 at 5:44am

Why is this article by Chris Barrett? What happened to Proszenko?
- Hamish > Yobz November 3, 2014 at 8:13am
  
  Maybe the smh got a couple of photos depicting old Prozenko sitting next to his good mate Spag bol and deemed it wouldn't be appropriate for Prozenko to write any articles relating to misconduct at Parra Leagues under the Spag bol administration.
  
  One can hope anyway.
- Yobz > Yobz November 3, 2014 at 1:06pm
  
  Sorry guys it was a rhetorical question.
Mike Richmond November 3, 2014 at 7:34am

I posted below in part on 20 Sept 2013. Was I right?

One of the issues that has dogged our club and will for some time to come is the subject of "self interest".

Individuals and factions related to Parra and the Board are driven by many things inclusive of power, ego and greed.

The greed aspect us unfortunately satisfied by the fact that individuals can personally profit from the club and there are many current accusations flying around regarding these.
- The Schueb is back > Mike Richmond November 3, 2014 at 7:52am
  
  The new ken crapper
  
  Public flogging in church street would be too good for them
Mike Richmond November 3, 2014 at 8:06am

People talk about "karma". People have made millions by being able to "get things done" in business. Karma will only take place when they can't afford to drive their porsche cayenne's and boxters. Hopefully the board will move to ban them all for life. Only then will the club get to move forward without their individual shadow.
Earl Grey November 3, 2014 at 8:22am

No wonder Sandow was a porker if we spent 70K on pizza dough!!
the daniel November 3, 2014 at 8:29am

I love the two quotes by Kelly, which showcase how delusional he actually is. First he states that he believes he was acting 100% ethically... you may have that belief Kelly but the governing bodies don't. Then he goes on to state and downplay what actually occurred, and why only four of the members were brought into question, again mate it is because they did not engage in unethical behavior and partake in self interest activities.

The next few weeks will have a magnitude of slander, get ready for it guys because these guys are the bottom of the barrel and will continue to do whatever they can to protect themselves.

I am just glad the players will be in the states while all this shit goes down, so they do not have to deal with it all.

Mike Richmond November 3, 2014 at 9:05am

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