The NSW Independent Liquor and Gaming Authority (ILGA) has banned former Erina Rugby League Football Club President James Savage from serving as a club official for 12 months. The regulator determined he was not a fit and proper person to hold the role.
The regulator also imposed a AU$1,100 fine following an investigation by Liquor & Gaming NSW (L&GNSW), which found significant governance failures relating to conflicts of interest and procurement practices.
The investigation examined payments totalling AU$80,870 made between October 2022 and January 2023 to two businesses owned by Savage, SavBuilt Pty Ltd and Master of all Handyman Services. According to the findings, the works were approved without competitive tenders or quotations being presented to the club's board.
Investigators also reviewed an earlier 2017 construction project, where a AU$90,000 quotation submitted by companies owned by Savage was ultimately followed by project costs exceeding AU$450,000.
ILGA concluded that Savage failed to properly declare his conflicts of interest, did not ensure they were appropriately recorded, and neglected to follow the club's procurement and tender requirements when awarding construction work to his own businesses.
Liquor & Gaming NSW Executive Director of Regulatory Operations Dimitri Argeres said the outcome serves as a reminder that club directors and executives have clear legal responsibilities when managing members' funds.
He stressed that a lack of governance knowledge is not an acceptable defence and encouraged registered clubs to strengthen internal controls by regularly reviewing compliance with the Registered Clubs Accountability Code, identifying high-risk areas such as gaming, procurement and cash management, and implementing robust risk management and audit processes.
The regulator also pointed to another recent governance case involving Dalmacija Sydney Croatian Club, where an investigation found that property had been sold without member approval. While ILGA chose not to impose additional disciplinary action in that matter, it noted that a Supreme Court order requiring two former officials to repay AU$250,000 to the club constituted an appropriate penalty.
L&GNSW said it will continue monitoring club governance, investigating alleged misconduct and scrutinising property transactions to safeguard the integrity of the registered club sector and protect members' interests.
In addition to the ban and fine, Savage was ordered to pay AU$31,147 to cover the costs of Liquor & Gaming NSW's investigation
