Department of Gaming and Racing to investigate Workmen’s Club

Allegations of improper financial dealings regarding the Stuart Street development site owned by the Helensburgh Workmen’s Club have been referred to the NSW Department of Gaming and Racing.

Graham Thomson, the outgoing president of the club (a new board was elected on 28 November), said in a written statement the complaint related to an alleged breach regarding the possible future sale of land belonging to the club.

“The DGR has a responsibility to investigate any complaint made against a club and we appreciate the opportunity it provides us to end what has been a three-month whispering campaign against the club by one former member,” Mr Thomson said in the statement.

“I would however like to reassure members that the sale of club-owned land cannot occur without the majority permission of club members as stated in both the club constitution and also the Registered Clubs Act.”

However the former Treasurer of the club, Ian Wilson, claims plans for the site have “gone way beyond the point where it should have been put to members”.

“What concerns me most is that there has been no attempt to claw back the financial viability of the club and they (board members) need the proceeds of that sale to prop up the underlying financial position,” Mr Wilson said.

Proposals for the vacant site include a retirement village and units. It has been owned by the Workmen’s Club for nearly 120 years and is understood to be worth between $6 million and $8 million.

In the club’s 30 June annual report, independent auditor Clarence Neaves said at the balance date the club “will not be able to pay its debts as and when they fall due”.

“Therefore we believe the going concern basis should not be used and had the going concern basis not been used … the entity may be required to realise its assets and extinguish its liability other than in the normal course of business,” Mr Neaves wrote.

In a statement faxed to the Helensburgh & District News, the newly appointed secretary manager of the club, Mr Gordon Steele, said the club was able to pay its debts and any suggestion to the contrary was strongly refuted.

“Should you publish anything which states or infers that the club is not able to pay its debts as and when they fall due, it will be wrong and such publication may cause considerable commercial damage to the club’s business and reputation,” he wrote.

The annual report stated that the club had an operating loss for the year ended 30 June 2004 before income tax and extraordinary items of $111,990.

Mr Steele also wrote that Mr Wilson was no longer the club’s Treasurer.

Mr Wilson was disqualified from holding the position after failing to pay his fees but he said he had tried to pay his fees within the 30-day time period after 1 December but was refused.

Mr Wilson said he had not been notified that he was no longer Treasurer under the previous Board of Directors and he had a duty of care to members.

He said he had tried to educate the board about strategic planning and proper financial management, as well as encourage them to consult with members about plans for the    5000sq m Stuart Street site.

“It’s a pattern of frustration and a refusal to yield to executive power within the organisation,” Mr Wilson said.

He said the charge of conduct unbecoming a member related to a raffle where he put his wife Robyn’s ticket into the barrel and was told from the floor that officials could not take part.

When an R. Wilson was drawn as the winner, he said the raffle was held up however it was a Mr R. Wilson who had won.

“After the raffle concluded I saw the duty manager and asked him to go through the barrel to prove that it was my wife’s ticket and not mine,” Mr Wilson said.

“My actions were considered intimidating and they got a security guard to show me out.”