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Georges River Council calls time on Netstrata Stadium - Inside Local Government
Georges River Council has terminated its naming rights agreement with Netstrata for Jubilee Stadium. Council’s agreement with Netstrata for the naming rights of Jubilee Stadium was considered at a meeting this week in response to a resolution of Council on 24 April last year that a report to...
insidelocalgovernment.com.au
Georges River Council has terminated its naming rights agreement with Netstrata for Jubilee Stadium.
Council’s agreement with Netstrata for the naming rights of Jubilee Stadium was considered at a meeting this week in response to a resolution of Council on 24 April last year that a report to Council be prepared following investigation into Netstrata’s conduct.
NSW Fair Trading last month released the summary of findings and recommendations from the independent expert report into Netstrata by McGrathNicol to the Commissioner for NSW Fair Trading. The investigation was prompted by public concerns the strata management company was charging excessive fees, and not disclosing conflicts of interest and referral commissions.
After reviewing a sample of 60 strata plans managed by Netstrata, McGrathNicol identified potential breaches by Netstrata of the Strata Schemes Management Act 2015 including:
- Seven instances of failing to obtain at least two quotes for expenses exceeding $30,000, in contravention of section 102;
- Two instances of non-disclosure of commissions received by Netstrata, in contravention of section 60;
- Possible breaches of section 60 in relation to non-disclosure of commissions received by Netstrata from a third-party service debt collection agency, Strategic Collection Services Pty Ltd.
- Several potential conflicts of interest not disclosed by Netstrata to its clients including the personal relationships that employees of Netstrata had with suppliers;
- Highly saturated use of those related entity suppliers or suppliers with whom Netstrata had a commercial arrangement;
- Other practices that could be considered not in the best interests of the consumer, including:
- charging a premium to strata plans who did not use Netstrata’s wholly owned insurance broker, Strata Insurance Services (SIS);
- a remuneration structure which arguably incentivises its strata managers to bill for add-on charges (Schedule B charges).
The venue will now be referred to Jubilee Stadium until a new naming rights agreement is established.
“After careful consideration, Council has determined that Netstrata has engaged in conduct that could have an adverse impact on our reputation,” said Mayor, Elise Borg.
“While this partnership has ended under challenging circumstances, we appreciate the support Netstrata has provided over the years. Our focus now is on moving forward and identifying new opportunities that will continue to enhance Jubilee Stadium as a premier venue for sports and entertainment.”
