Police, Tax Office begin investigations into Parramatta Eels over salary cap scandal
Date
May 17, 2016 - 8:23PM
Adrian Proszenko
Chief Rugby League Reporter
Police are investigating whether any fraud occurred while the Parramatta Eels were cheating the salary cap.
The prospect of criminal charges being laid has increased after the NSW Police Force obtained a copy of the NRL's breach notice, and the Australian Taxation Office has also made inquiries into the club.
Five key officials – chairman Steve Sharp, deputy Tom Issa, football manager Daniel Anderson, CEO John Boulous and director Peter Serrao – are alleged to have arranged, or been aware of, payments to players outside of the game's rules.
A key component of the NRL's evidence against the club and the individuals stems from the recordings of board meetings, in which directors openly discussed whether they had committed "fraud" in paying players more than $3 million over the salary cap since 2013. The governing body has alleged the payments were via third-party arrangements, cash and inflated or fictitious invoices.
The NSW Police Force is poring over the NRL's report in a development that could result in jail time for any officials committing fraud.
"NSWPF has received a copy of the report and is reviewing it," a police spokesperson confirmed.
Fairfax Media has learnt the ATO is also is looking into the Eels situation.
"Due to confidentiality provisions in the Tax Administration Act, the ATO cannot comment on any individual's or entity's tax affairs," an ATO spokesman said.
The allegations have already piqued the interest of Liquor & Gaming NSW, which is investigating whether the Parramatta Leagues Club breached the Registered Clubs Act. While L&G NSW has no jurisdiction over the Parramatta Eels, the fact the same directors sit on the Parramatta Leagues Club board means they can be stood down if they are not deemed "fit and proper" to hold their positions.
Former Parramatta fullback Jarryd Hayne was the biggest beneficiary of the secret payments, which totalled almost half a million dollars. However, the cross-code star, who is hopeful of making the Fijian sevens side for the Rio Olympics after retiring from the NFL, said he was unaware of any issues.
"Half a million, wow, must have been the wrong bank account. I haven't seen it," Hayne said. "Us players have no idea what goes on behind closed doors."
When asked if he was aware of any off-the-record payments, Hayne replied: "Not that I'm aware of, no".
He said the players' duty was to go out and play and he had put his trust in his manager and the people who ran the club. "I'm an athlete, not a manager" he added.
Hayne's manager, Wayne Beavis, also denied the reports.
"On the press reports there is a lot of the content contained in it relating to Jarryd that is factually incorrect," Beavis told Sky Sports Radio.
Hayne was one of 25 current and former Eels players listed on an "undisclosed payment register" the club had compiled. The document shows some of the side's biggest names had or would illegally benefit from off-the-book payments. There is no suggestion the players knew of any impropriety, although the next phase of the NRL's investigation will focus on the the role of player managers.
There is no suggestion Hayne or Beavis were aware the payments were contrary to NRL rules.
It was expected the full Parramatta board would convene on Tuesday to discuss a range of matters, including who would guide the club while the "gang of five" are preparing to answer their breach notices. However, that meeting will now take place on Wednesday.
There is a push to install Parramatta Leagues Club CEO Bevan Paul as group CEO, although the terms of his contract appear to be a sticking point. The majority of directors want Paul in the role on only an interim rather than permanent basis, a proposition that he will probably knock back.
Should that happen, the club will look to appoint a short-term consultant to assist chief operating officer Craig Beed until the futures of the "gang of five" are determined.
