AGY-6947 | Inquiry under the Charitable Fundraising Act 1991 into The Returned Services League of Australia (New South Wales Branch), RSL Welfare and Benevolent Institution and RSL LifeCare Limited

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Background
In November 2014 Mr Rowe resigned as President of RSL New South Wales and also from his other positions as Chairman of RSL Welfare and Benevolent Institution (also known as RSL DefenceCare); WBI and as a director of RSL LifeCare Limited either immediately or soon thereafter. The circumstances of his resignation were controversial and were subject of evidence during the Inquiry.

After Mr Rowe resigned, some questions were raised at State Council level about the appropriateness and/or validity of payments referred to as “consulting fees” being made to the directors of LifeCare.

In September and October 2016 the controversy in relation to Mr Rowe’s resignation and the questions that has been raised about “consulting fees” leaked to the public domain. These issues were then aired in the media, both print and electronic, with serious allegations being made in respect of Mr Rowe’s expenses and the payment of consulting fees.

The public controversy continued with calls reported in media for RSL New South Wales Council to step aside. In February 2017 the State Council stood aside and a Management Committee was established to manage the affairs of the RSL New South Wales until the elections in May 2017.

Both RSL New South Wales and the RSL National retained forensic accountants and a Board of Inquiry was established within the RSL organisation to look into these matters. In March 2017, the Chairman of the Board of Inquiry wrote to the Minister indicating the limitations of investigative powers of the Board of Inquiry and seeking a grant of powers under the Charitable Fundraising Act to enable further investigative steps to be taken. (1)

Establishment of the Public Inquiry
On 15 May 2017 Matthew Kean, the Minister for Innovation and Better Regulation appointed the Honourable Patricia Anne Bergin SC as an Authorised Inspector under the Charitable Fundraising Act 1991 (Act No.69, 1991) to investigate the matters referred to in the terms of the Inquiry in respect to the Returned and Services League of Australia (New South Wales Branch), the RSL Welfare and Benevolent Institution (also known as RSL DefenceCare) and its Trustees and RSL LifeCare Limited.

On Monday 14 August 2017 the Charitable Fundraising Amendment (Inquiries) Act 2017 (Act No.36, 2017) was assented to and the Inquiry was reconstituted as a Public Inquiry. The Honourable Patricia Anne Bergin SC, is taken to have been appointed as the Public Inquirer from the commencement of the Charitable Fundraising Amendment (Inquiries) Act 2017. (2)

The Inquirer was directed to inquire into and report to the Minister on the following matter:

A. the body corporate called 'The Returned and Services League of Australia (New South Wales Branch)' ('RSL NSW'), an organisation that I have reason to believe has conducted a fundraising appeal and persons whom I have reason to believe have been associated with a fundraising appeal (within the meaning of the Act), including but not limited to the members of the governing body and officers or RSL NSW
B. 'the RSL Welfare and Benevolent Institution' (also known as 'RSL DefenceCare') and its trustees (collectively, 'WBI'), respectively an organisation that I have reson to believe has conducted a fundraising appeal and persons whom I have reason to believe have been associated with a fundraising appeal (within the meaning of the Act), including but not limited to the members of the governing body and officers of WBI, and
C. RSL Life Care Limited ('LifeCare'), an organisation that I have reason to believe has conducted a fundraising appeal and persons whom I have reason to believe have been associated with a fundraising appeal (within the meaning of the Act), including but not limited to the members of the governing body and officers of LifeCare.

with respect to the following matters arising under the Act:

1. whether or not:
a. RSL NSW has since 1 July 2007 complied with Condition 20 (as varied from time to time) of its authority to conduct charitable fundraising
b. the terms of the said Condition 20 are adequate to achieve its purpose and to ensure good governance of RSL NSW in respect of matters relevant to the operation of the Act
c. funds of RSL NSW have since 1 July 2007 been used or expended pursuant to decisions made by a person, or by a group including a person, inconsistently with their obligations to RSL NSW and/or who had in respect of any such decision a conflict of interest
d. any other Condition of RSL NSW's authority to conduct charitable fundraising has been breached since 1 July 2007.
2. whether or not:
a. WBI has since 1 July 2007 complied with Condition 20 (as varied form time to time) of its authority to conduct charitable fundraising
b. the terms of the said Condition 20 are adequate to achieve its purpose and to ensure good governance of WBI in respect of matters relevant to the operation of the Act
c. funds of WBI have since 1 July 2007 been paid to LifeCare or otherwise used or expended pursuant to decisions made by a person, or by a group including a person, inconsistently with their obligations to WBI and/or who had in respect of any such decision a conflict of interest, and
d. any other Condition of WBI's authority to conduct charitable fundraising has been breached since 1 July 2007.
3. whether or not:
a. LifeCare has since 1 July 2007 complied with Condition 20 (as varied form time to time) of its authority to conduct charitable fundraising
b. the terms of the said Condition 20 are adequate to achieve its purpose and to ensure good governance of LifeCare in respect of matters relevant to the operation of the Act
c. funds of LifeCare have since 1 July 2007 been used or expended pursuant to decisions made by a person, or by a group including a person, inconsistently with their obligations to LifeCare and/or who had in respect of any such decision a conflict of interest, and
d. any other Condition of LifeCare's authority to conduct charitable fundraising has been breached since 1 July 2007.
4. whether or not the management of RSL NSW, WBI or LifeCare since 1 January 2007, or the conduct of any fundraising appeal by them since 1 January 2007, or any other matter that comes to the attention of the inquiry, involves or indicates:
a. a breach of the Act, or
b. a ground upon which I could be satisfied of a matter listed in subsection 16(2) or subsection 31(1) of the Act.

Public hearings commenced on 5 September 2017 and concluded on 24 October 2017. (3)

The Public Inquiry ended when its Final Report was presented to the Minister for Innovation and Better Regulation, Matthew Kean, on 1 February 2018.

Endnotes
1. Inquiry under the Charitable Fundraising Act 1991 Opening – 5 September 2017.
2. Public Inquiry under the Charitable Fundraising Act webpage, https://www.finance.nsw.gov.au/inquiry-under-charitable-fundraising-act-1991 (accessed 24 October 2017).
3. Ibid.