John Nick
Contributor
Wow Good on them.
Played against Richmond at their ground many years ago.
I think they have had a few lean years
General Auckland Rugby League
- Thread starter WahsaurusRex
- Start date
Played against Richmond at their ground many years ago.
I think they have had a few lean years
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Players with Mt Albert connection to be inducted into the ARL Hall of fame next week - Shane Cooper, Bluey McLennan and his late Dad, Mike.
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Same idiots who moved in and complained about the speedway noise !!
I said at the time these guys shouldn't be involved in the Warriors. I am so glad we have the owners we have now. Imagine the shit show the club would have been in with the ARL running the place
www.nzherald.co.nz
Exclusive: Auckland league CEO blows whistle on $7.2m spend
Probe into finances prompts CEO to speak out as battle for control of sport looms.
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Rick O’Shay
Contributor
Where's Bruce when we need him?I said at the time these guys shouldn't be involved in the Warriors. I am so glad we have the owners we have now. Imagine the shit show the club would have been in with the ARL running the place
Exclusive: Auckland league CEO blows whistle on $7.2m spend
Probe into finances prompts CEO to speak out as battle for control of sport looms.
John Nick
Contributor
Unfortunately Rick the ARL has been a basket case for many years as Im sure you know.
Exclusive interview: Rugby League legend Cameron McGregor stripped of life membership
League stalwart Cameron McGregor has been stripped of his life membership of Auckland Rugby League, and has come out swinging, saying none of its current decisions are valid and it is “out of control”.“I know what I have done is right and my values that I adhere to have never wavered and the truth will come out.”
McGregor spoke to the Herald as news emerged that Auckland Rugby League (ARL)had revoked the life memberships of himself and former director and ARL employee Pat Carthy citing alleged management and governance failures during their time on the board.
It follows the Herald revealing details of a report by financial experts PwC into the financial management and governance of ARL which highlighted what it said were multiple conflicts of interests and a total loss of $7.2mwhich PwC attributed in part to poor or undocumented decision-making.
The PwC report also uncovered one employee at the organisation who is alleged to have manipulated ARL’s invoicing system and used an ARL credit card to take $183,798.
It stated a review of credit card statements over the eight years it had studied would “have easily identified the large volume and value of transactions made at SkyCity” by an employee known to gamble.
The report was ordered by ARL’s new chief executive Rebecca Russell who started at the organisation two years ago. The Herald understands the report has now been sent to Auckland clubs and those subject to adverse findings.
McGregor was identified by PwC as having multiple conflicting roles - such as chairing ARL while holding the same role with ARL’s investment arm Carlaw Holdings Trust and the Warriors during ARL’s year-long ownership of the club.
PwC also found around $80,000 had been paid to McGregor’s accounting firm, McGregor Bailey, with inadequate documentation supporting the payments, given his conflicts.
McGregor said his car had been graffitied with obscenities in the aftermath of the Herald’s reporting of the PwC report.
He also denied any inappropriate actions on his part, saying: “I’ve given my heart and soul to the game over many, many years. I’ve done more than my best for ARL over the years. That’s why all of this is rubbish.”
‘Out of control’
McGregor told the Herald ARL was “out of control” and he believed Russell needed to leave the role as chief executive.However, he said that was up to the Auckland clubs which were preparing to vote from October 7 on new directors for the board. The process was caught on the eligibility of those clubs to vote as they needed current audited accounts to do so and ARL was responsible for helping them complete those records, he said.
“If the clubs come together - and that’s what NZRL wants them to do - the clubs can control what’s going to happen.”
McGregor and three suspended directors - including Carthy - had appealed to NZRL with claims ARL was out of line.
NZRL found itself unable to overturn decisions made by ARL and the national body last month organised meetings with ARL’s clubs to air concerns.
However, McGregor said the decision found that ARL was operating outside its constitution because it had insufficient directors. As a result, he said the appeal ruled that its decisions were unconstitutional and should be reversed.
“They can do anything they want and it’s not going to make a difference.”
McGregor said any payments to his business during his 20 years as chairman were worth a fraction of the hours he’s spent working for the sport. “I would hate to think what I’ve lost in income.”
Asked about PwC’s position that it couldn’t find records of conflicts being declared, he said: “Everything I did was discussed with the board at all times. And I was scrupulous in that. If they haven’t found evidence of that, that’s an issue.”
He did acknowledge that he blended his financial assessments around the Warriors with those from Deloittes but denied doing so “filtered” or misrepresented the information seen by fellow board members. As a chartered accountant with more than 40 years experience, he said he had experience and knowledge to impart.
“Quite clearly, it’s out of control. Everyone has resigned from the board. They’re trying to use legal means to stay in there. It’s questionable how they are still there.”
McGregor said the PwC report was a “one-sided point of view” and he had refused to be interviewed by its investigators because it was a “fishing expedition”.
“I haven’t been charged with anything. If (ARL) believe I had done something wrong they could do what I’ve done and go to NZRL.”
McGregor said there were “system audits” and qualified accountants in oversight roles throughout his time as ARL chairman and annual financial audits that were passed.
Asked if there was an answer as to how the long-running fraud could happen in a functional office, he said: “I believe there is (an answer) but I couldn’t tell you.”
McGregor said many staff had left ARL when Russell started and the departures cost the organisation “a lot of institutional knowledge”. “It wouldn’t surprise me if there was very little in the way of records.”
The Herald asked McGregor how he could stay conflict-free when he was chairman of the ARL, its charitable investment arm CHT and the Warriors, he said: “What I was doing was always in the best interests of rugby league.
“The type [of conflict of interest] that’s not good is where I’m somewhere for personal gain - and I have never had those conflicts of interest.”
‘This is all rubbish’
McGregor said it had taken him eight months of negotiations with Eric Watson to buy the Warriors - a purchase the PwC report said cost ARL $4.2m by the time it was sold 14 months later. He said he had done 10 times more work than financial advisors Deloitte’s.
“I would hate to think what I’ve lost in income. I’ve done more than my best for ARL over the years. That’s why all of this is rubbish.”
PwC found McGregor had misrepresented financial information from Deloitte’s about the value of the Warriors. Asked about this, he said: “I had my own opinion on it.” On the professional advice, he said he was a chartered accountant of more than 40 years experience and when considering Deloitte’s position “you agree with some of it and disagree with some of it”.
When presenting that information to the board, he said he offered Deloitte’s view and his own.
He said $4.2m lost in the sale of the Warriors 14 months later would not have happened if he had not been removed from the CHT Trust because of his opposition to the sale.
“They needn’t have lost $4m,” said McGregor, adding that retaining ownership would have seen a return on investment in the years ahead. On the loss, he said: “It had nothing to do with me in the end.”
However, he said those remaining on the board would not have been the right owners if it had been kept. “The people who came after wouldn’t have been able to control the Warriors. They didn’t have the governance experience.”
McGregor said the clubs with the power to vote directors onto the board needed to “get a new board in there and they can sort all of this out”.
In his opinion, that should include whether Russell could continue as chief executive. “You’ve got the wrong people in there,” he said. “At the end of the day, forget about the PwC report - what’s best for the game going forward.”
McGregor said he would not be standing. “I’ve had enough. Been there, done that. Look at what’s happened. Why would I want to put my hand up again?”
He said he would like to return to the CHT board which he, alongside fellow former director Sel Pearson, had developed into a $100 million-plus entity - of which CHT’s share was valued at $78 million - by developing the old Carlaw Park site.
Why life memberships were revoked
Russell alleged management and governance failures during McGregor and Carthy’s time on the board as the reason for life memberships being revoked. “Our investigations into the ARL show that significant, poorly managed conflicts of interest often lead to financial mismanagement.”
Carthy was general manager and then chief operating officer at ARL while serving as board secretary for over a decade which covered periods over which PwC had raised concerns.
Russell said: “When we started to pull at the threads of this investigation it became clear that there had been significant lack of governance and poor management decisions made for decades. To date nobody has been held to account for the mismanagement.”
Russell said life membership of ARL was “reserved for the most esteemed representatives of the game” who had served the league community for at least 20 years and was limited to 20 living life members.
ARL chairman Shane Price said life membership was an honour reserved for those considered to have made a significant contribution to the organisation or the game.
Price believed the PwC investigation showed that McGregor and Carthy no longer met the criterial for ARL life membership.
The appeals to NZRL by three directors suspended last year - including Carthy - led to the discovery the national body had no power to overturn ARL’s decisions.
NZRL went on to organise a meeting with ARL’s clubs to air concerns with chief executive Peters asked those present: “Do you know that $500,000 is being spent of your money on that investigation? Is that looking backwards? And should we be looking forward?”
Asked when NZRL last had an independent review in the nature of the PWC report, Peters told the Herald it was annually audited. “There is no requirement for any further review.”
The Herald’s revelation of the PwC findings come ahead of voting opening next Monday to appoint new directors to ARL’s board which has thinned out further following the resignations with others leaving.
Russell’s organisational and office reforms have won support from Sir Graham Lowe, a towering figure in the game, as bringing professionalism to the sporting organisation.
Her moves have also had detractors who have dubbed Russell, “The Duchess”.
Russell said the work during her two years in the job had led to discovering “significant management and governance failures that led to losses” and there was a focus to ensure systems were created to avoid future issues of the same kind.
“The cost of the investigation is minimal compared to the importance of securing the future of the game,” she said.
‘I’ve given my heart and soul’: League legend stripped of life membership
Former ARL chairman Cameron McGregor says the game should dump new chief executive.
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Jeez. Just read the herald’s article on the ARL.
I’ve always thought it would be nice to volunteer at a grassroots club and put some time in. However, after reading about what happens behind the scenes, I can imagine I would want to pull my hair out
I’ve always thought it would be nice to volunteer at a grassroots club and put some time in. However, after reading about what happens behind the scenes, I can imagine I would want to pull my hair out
John Nick
Contributor
Yeah mate I don't know what to think about this situation.
I know that Cameron McGregor has been recognized as a very hard worker for rugby league for many years.
Who knows what the real truth is.
My Dad was involved with admin at club level many years ago and always said that the time had come for professional people to take over the game.
Unfortunately the majority of the admin people are willing to help but lack the ability /knowledge
I believe McGregor had his heart in the right place but thought he was Auckland Rugby League and made it revolve around himself.Yeah mate I don't know what to think about this situation.
I know that Cameron McGregor has been recognized as a very hard worker for rugby league for many years.
Who knows what the real truth is.
My Dad was involved with admin at club level many years ago and always said that the time had come for professional people to take over the game.
Unfortunately the majority of the admin people are willing to help but lack the ability /knowledge
The game needs people like him with his passion but with the appropriate checks and balances.
The buying into the Warriors fiasco was a cockup with him the central figure.
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I always said an organisation set up to care for the grassroots/amateur - from pre-school age to schoolage to post-schoolage - side of a sport should never spend a large part of it's income on the professional side. An amateur organisation purchasing anything like a controlling percentage of the Warriors, which obviously entitled them to make/seriously influence professional decisions that the Warriors board make, was always going to end badly.
The one thing I credit Matt Elliott with is that is was him who said "If we want the NSW Cup team to work well for the NRL team, the Warriors have to control it completely." Okay, things obviously haven't worked out as intended yet, but it was a start. Previously, I heard there were disagreements about whether a player from an ARL club/or a player from the Warriors got picked for the next game.
The one thing I credit Matt Elliott with is that is was him who said "If we want the NSW Cup team to work well for the NRL team, the Warriors have to control it completely." Okay, things obviously haven't worked out as intended yet, but it was a start. Previously, I heard there were disagreements about whether a player from an ARL club/or a player from the Warriors got picked for the next game.
Akld team playing Otago at Blockhouse Bay - times have changed
RIP Kevin Bailey , a fantastic RL man
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When I was a young guy I played for Pt Chev. My dad and I would watch the seniors and they always struggled in the 3rd grade. The one stand out player was Dennis Key . He was loyal to Point - I think he went to Glenora for a year or so.
John Nick
Contributor
Not that I remember. By then I was living in Australia.
I have kept in touch with him for many years
He always represented Point in the Carlaw Park sprint races. Nearly always first to the 50 yard line. Very quick off the mark
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Rebecca ‘The Duchess’ Russell quits Auckland Rugby League
- Chief executive Rebecca Russell has quit and is leaving Auckland Rugby League after two years and eight months in the job.
- Her leadership exposed multiple conflicts of interest, management issues and fraud at Auckland Rugby League.
- Former Auckland Rugby League chairman Cameron McGregor was stripped of his life membership in October over alleged management and governance failures. He denies wrongdoing.
Rebecca Russell came into Auckland Rugby League (ARL) as chief executive to then be dubbed “The Duchess” by league’s old guard once she started digging into 20 years of management and governance decisions.
The result was an explosive report from financial services giant PwC which alleged standard business and oversight processes had been sidelined for years.
It also revealed an alleged fraud by a long-serving staff member that had been going on under the eye of managers and board directors for at least a decade.
“It’s been a wild ride,” she told the Herald. “One thing I really reflect on for me and my team is the level of personal resilience. I have surprised myself with the level of resilience I’ve had. It’s been huge.”
Russell was the first female CEO at Auckland Rugby League.
“I think I’ve done everything with integrity. I’ve always wanted the best for the game,” she told the Herald.
Russell said she was leaving to run The Y North which operates 20 centres from the Bay of Plenty and Waikato up to Warkworth. “The Y” is a modern evolution of the YMCA which operates community programmes along with accommodation, camps, and fitness centres.
“It’s big and it’s meaningful. It’s an opportunity I didn’t want to pass up.
“With ARL, when I came into the role there were a couple of things I made clear … that transformation would take two years, and it’s taken a little longer. And I said I never wanted to be part of the furniture.”
She said she now leaves the organisation with modernised systems and robust governance through a new constitution voted in by Auckland clubs.
When Russell came to ARL she found a paper-based office that had “no processes, no procedures, no standards”. In her attempt to institute order, she developed concerns over decisions that had been made, so hired PwC to carry out a review.
The PwC report raised questions over $7.2 million of spending over the period it studied with some of league’s vaunted administrators caught in its inquiry into governance practices.
The PwC report alleged conflicts of interest along with poor decision-making with ARL’s new management describing the inquiry as painting a picture of an organisation with a 20-year history of slipshod management and governance.
It also alleged a long-serving staff member had taken $183,798 through credit card and invoice fraud and spent much of the money at SkyCity casino.
Three directors of ARL were suspended with long-time administrator Cameron McGregor the highest-profile among those singled out by name in the PwC report.
McGregor, an accountant, was stripped of life membership along with former ARL employee Pat Carthy with ARL citing alleged management and governance failures during their time on the board.
In an interview with the Herald, McGregor denied any wrongdoing, saying: “I know what I have done is right and my values that I adhere to have never wavered and the truth will come out.”
He also backed the national sports body, New Zealand Rugby League, when it organised meetings with Auckland clubs without their own governing body ARL involved. NZRL’s Independent Appeals Committee also attempted to over-rule ARL’s suspension of directors.
“If the clubs come together – and that’s what NZRL wants them to do – the clubs can control what’s going to happen,” he said.
Russell meanwhile says she’s confident she’s leaving ARL in good shape.
She said the Auckland clubs had voted on a new constitution that demands greater rigour at board level, an appointments panel to screen applicants for the right skills, an increase in independent directors, and the removal of voting rights for life members.
“I think the clubs made it pretty clear they didn’t want any interference from NZRL.”
Only two of the current dozen life members turned up for the vote, she said, with one objecting to the removal of life member voting rights. The previous system had given “huge power” to life members, she said.
She said the mix has increased the skill set of those running a $15m organisation that served the 10,000 players across 30 clubs, along with a role managing the $78m held in its charitable investment arm, the Carlaw Heritage Trust.
The new board was now made up of three independent directors (up from two), a director elected by each of the three Auckland regions and a “wild card” director elected by all regions.
Voting was currently under way to choose a new board which would then choose her successor in the new year. Russell is expecting to finish next month and start with The Y in February.
“What we’re starting to see come through is really quality candidates. We’re not seeing those with conflicts. It looks to me that it is no longer a popularity contest.”
She said the internal office systems were now strong with a shift to digital tools and a great team carrying out the work.
Russell said discussions with NZRL had largely resolved friction between the organisations with some matters from the appeals board still lingering.
She said reflecting on the period of her leadership brought no second-guessing on decisions. “If you know in your heart and mind you’ve done things with integrity then you don’t have regrets.”
The $500,000 cost of the PwC report was the price paid for skipping processes for years, she said. “If it had been managed, we wouldn’t have this one-off cost. I don’t see it as a cost. I see it as an investment.”
'It's been a wild ride': Rebecca Russell quits Auckland rugby league after reforms
Russell reveals the changes she's made since uncovering fraud and mismanagement at ARL.
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