Parramatta Eels great Eric Grothe snr investigated over meat tray deal
Date
November 3, 2014 - 6:29AM
Chris Barrett
Sports Writer
Parramatta 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.
However, 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.
