Crisis rocks Parramatta club as director quits
Kate McClymont
October 15, 2011.
Paul Osborne faces claims of financial irregularities and harassment, writes Kate McClymont.
THE board of the Parramatta NRL club is in crisis following allegations of financial irregularities and a complaint against the club's chief executive, Paul Osborne.
Matters came to a head on Monday when Glenn Duncan, a director of Parramatta Rugby League Club and head of the club's major sponsor Pirtek, resigned over the board's failure to take action against Mr Osborne.
For the past three months, the board has been aware of allegations raised about Mr Osborne, including the use of a top-of-the-range series BMW provided by a club sponsor, and that he has been forced to repay the club $35,000 in unauthorised expenses incurred on his club credit card last year.
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Mr Osborne said yesterday his wife ''had used my business card and that's how it got so big''. He said he was confident he had ''cleared his debts to the club''.
The Herald has been told that a $9500 repayment was made through a cheque from a company associated with the club's chairman, Roy Spagnolo.
Mr Osborne said he was sure he had not used Mr Spagnolo's funds to repay his club debts.
Mr Spagnolo was confronted by Mr Duncan at a board meeting on October 6 about whether he had ever loaned Mr Osborne money and, if so, why had he not declared a conflict of interest in dealing with Mr Osborne's future employment.
Four days later, Mr Spagnolo sent a confidential email to his fellow directors on the board.
''At his request, and using my own resources, I advanced Paul monies not all of which have been repaid,'' he wrote.
''Having reflected on the matter, and in the interest of probity,'' Mr Spagnolo said he would not deal ''with Paul's future employment while Paul is personally indebted to me''.
He confirmed yesterday to the Herald that Mr Osborne still owed him money but refused to disclose the amount. ''It's nothing to do with the club. It is a personal situation,'' he said.
On top of his financial problems, Mr Osborne, a father of nine and a member of Hillsong Church, has also been the subject of an internal investigation over his relationship with a work colleague.
Club officials met a young female employee yesterday, who alleges that Mr Osborne and his colleague had accused her of gossiping about their relationship.
Mr Spagnolo said the matter had been dealt with by the board but he did not wish to discuss how it had been dealt with.
As to Mr Osborne's future with the club, Mr Spagnolo said: ''He will be with the club.''
Mr Duncan declined to comment on the Osborne matter yesterday, except to say: ''The recent decisions of the board go against all my business principles which place me in a position of no longer being able to meet my expectations and duties as a director.''
Mr Osborne's financial problems have been exacerbated by his purchase of a $1.9 million Byron Bay holiday home in April.
Sarah Dougan, the real estate agent who sold Mr Osborne the house, is under investigation by the Department of Fair Trading after $550,000 was discovered missing from her trust account in July. In August, a fortnight before she was made bankrupt, Ms Dougan placed a caveat on Mr Osborne's Massinger Street house, claiming she ''caused monies to be paid towards the purchase price'' and was seeking ''the repayment of the said monies''.
Mr Osborne said he had been ripped off by Ms Dougan and was pursuing her through the Department of Fair Trading.
Two years ago, Mr Osborne, who earns an estimated $270,000, bought a house with his wife in Kenthurst for $920,000.
Mr Osborne, 45, who played first-grade rugby league for St George and Canberra, is a former police officer and a former member of Parliament. He became the Eels chief executive in mid 2009.
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