Zappia called to account for secret fund set up by Eels chief's firm
Brad Walter and Jacquelin Magnay | June 16, 2009
MEMBERS of the Sharks coaching staff, including head coach Ricky Stuart, are expected to be quizzed by club directors about whether they knew of a secret fund the club's disgraced former chief executive Tony Zappia kept hidden from the board.
The emergence of the fund, called the Forever Sharks Foundation and which contained $30,000 donated by a dying fan, has prompted the NRL to launch a salary cap investigation, while Zappia will today front the Cronulla board to explain why the cash-strapped club had not been made aware of such an important source of funding.
If they do not receive a satisfactory explanation it is believed the board will consider calling in police to investigate, and the financial settlement agreed with Zappia when he resigned last Thursday might be in jeopardy.
Cronulla directors are also furious that new Parramatta Leagues Club chairman Roy Spagnolo appears to know more about the finances of their club than they do after his accounting company set up the fund.
But Zappia last night insisted he had not done anything untoward and said $10,000 of the foundation money had been used to pay for training camps for the team at Kiama and to buy a computer for assistant coach Shane Flanagan.
The remaining $20,000 had been invested, he said. However, his comments raise questions about whether Stuart or any of the Sharks coaching staff knew that the money was being kept hidden from directors.
The board has ordered an immediate investigation to discover if any staff members were aware of the foundation.
The investigator is also looking for receipts, withdrawals, invoices or payments for which any of the foundation money might have been used.
Zappia last night showed Channel Nine receipts that he claimed to be evidence of spending money on the football team.
One receipt was for $4140 dated September last year, another was for $2460 and a third for $1598, for a computer for Flanagan.
The first receipt, shown on Channel Nine, was for two people spending three nights at a Kiama resort from September 16 last year, , when the club was contesting the finals. Channel Nine reported that that receipt was for a team camp, and a second receipt was for a team dinner at the same resort.
However, it is understood Zappia told the Nine reporter that the receipts, which had "paid" handwritten across the bottom, related to a team camp in May this year.
"I've got all the records, all the emails exchanged, I have all the documents in regards to where the money is," Zappia said.
Spagnolo, meanwhile, told the Herald that he was not personally involved in the foundation, whose directors are three employees of his company, even though he had been present yesterday when Zappia collected the documents to present to the Cronulla board today.
NRL chief executive David Gallop said he was expecting a report from the Sharks after their meeting with Zappia.
"The first step is for the Sharks board to understand what is going on," Gallop said last night. "We would expect the Sharks board to let us know what they find out tomorrow."
Meanwhile, former Test forward Reni Maitua said he hoped to have saved the Sharks further adverse publicity after accepting a two-year ban for returning a positive drug test.
But Maitua said he never knowingly took the banned substance clenbuterol, a stimulant used to boost muscle mass, for which he tested positive on May 1.
"Until I received the results of the testing, I had not ever heard of clenbuterol," the 27-year-old said in a statement issued by the NRL.
"I am still not aware what it does or what it is claimed to do. I have no idea how this substance came to appear in my sample but I accept that it has. I hope that by the approach I have adopted in not contesting this finding, I have saved my family, the Sharks, their fans and the NRL from further adverse publicity and suffering."
Maitua has been provisionally suspended since May 20, and will be free to resume playing on May 19, 2011, when he will be nearly 29 years of age.