Zappia - I acted appropriately
Exclusive by Josh Massoud | June 15, 2009 01:40pm
DISGRACED Cronulla CEO Tony Zappia has today denied any impropriety in connection with the Beyond Sharks Foundation, whose existence and $30,000 donation was withheld from the club's board.
Forced to resign last Thursday amid allegations of workplace misconduct against former female staffer Jenny Hall, Zappia is now embroiled in a fresh and potentially more sinister controversy involving the mysterious foundation.
The Sharks said today chairman Barry Pierce and representatives of the club's board would meet with Mr Zappia at 4.30pm tomorrow to discuss the matter.
The organization was registered with ASIC last August at the behest of a terminally ill Sharks fan known as Clint, who wished to donate his life insurance payout upon death.
The original figure payout was reported as $1.5 million, but in correspondence with Zappia last year, Clint said he was entitled to $13,800,000 upon his death.
The 27-year-old law student from Goulburn also made Zappia the executor of his will and gave the ex-Cronulla boss express authority to spend the Foundation's funds any way he saw fit to help the Sharks. Elford is dying from Shy Drager syndrome, a neurological disorder.
In February this year, the man sent six cheques four made out to the club and two to Zappia. All were valued at $5,000. Zappia passed on the two made out in his name to Cronullas coaching staff, who spent the $10,000 on a camp in Kiama. Zappia claims to have invoices of the expenses.
The remaining $20,000 is still with the Foundation's accountant, Roy Spangnolo & Associates, which oversees the fund. The companys principal, Roy Spagnolo, is also Parramatta's recently-elected chairman and long-time friend of Zappia.
Three Spagnolo employees Xavier Lo, Michelle Douglas and Belinda Goodwin are the Foundation's sole directors. Spagnolo said he had no connection with the Foundation, apart from the fact he has been Zappias personal accountant for the past 15 years.
The Daily Telegraph has today viewed documents and cheques, showing the $20,000 held by Spagnolo & Associates has not been spent.
Apart from minimal bank fees and charges, $10,000 is being held in an NAB account. The remaining $10,000 is now in an high-interest investment account set-up by Spagnolo & Associates. The Daily Telegraph has sighted up-to-date paperwork from both savings accounts, as well as the Foundations balance sheet, which shows the $20,000 is still untouched.
Concerned about misappropriation, the NRL this morning called upon Cronulla to investigate the Foundation. Zappia has already shown the paperwork to two Sharks directors, but other board members are furious they werent told.
Zappia said the benefactor wanted his contributions to remain private, explaining why the Foundation was set up without the boards knowledge and also why the two $5,000 cheques made out to Zappia were sent to his home address.
"All the money is accounted for, " Zappia said.
"At first, I thought the situation to be a little bizarre but he made a request for confidentiality and I respected that.
"It was one of those things where we didnt know where it would end up. Foremost in my mind was the request for privacy and the fact he wanted to make me executor of his estate.
"I granted his wish and had the Foundation established last August. It wasnt until February cheques were sent. $20,000 is still with the Foundation and the other $10,000 was spent by the coaching staff on our camp in Kiama and other bits and pieces."
Clint, however, said he was disappointed the board was not told. "I expected the board to know about it, and was surprised they weren't told," he said. "But as long as the money is being spent to help the Sharks - that's all I care about."
The Sharks put out a statement today which read:
"In response to enquiries relating to former Sharks CEO Tony Zappia and alleged donations collected on behalf of a reported Beyond Sharks Foundation, it has been arranged for club Chairman Barry Pierce and representatives of the Sharks Board of Directors to meet with Mr Zappia tomorrow afternoon.
"The meeting will be held at approximately 4.30pm, which is prior to a scheduled meeting of the football club board set down for 6.00pm.
Following such meetings the Sharks will fully cooperate with the NRL should they request and/or require any additional information in relation to this matter."
