Cheap rent, a $400k sculpture, funds to foreign vets revealed in RSL NSW report

A secret report has detailed allegations some RSL sub-branches across New South Wales were involved in fraud, mismanaging funds and in one case giving charitable dollars to foreign veterans.

The report, obtained by the ABC, was prepared by consulting firm Deloitte for the RSL NSW and delivered in March 2025, detailing a raft of undated "concerns" with 18 sub-branches across the state.

It was commissioned by the RSL NSW as part of a proposal to change its operating model.

Among the most serious allegations in the report were claims that several people in charge of sub-branches' finances mismanaged thousands of the charity's dollars.

In its response to the ABC the RSL NSW said in every case it intervened to ensure any funds spent aligned with their charitable purpose.

Under an act of parliament the RSL NSW operates as a not-for-profit charity raising funds for the assistance, care, relief and support to current and former defence force members and their families.

Property portfolios

The most valuable assets managed by sub-branches of the RSL around NSW are property.

In total, the Deloitte report found property held in trusts by RSL sub-branches in the state were valued at almost $150 million.

Many have sold their property assets for a huge windfall in the property boom that has engulfed Sydney and NSW in recent years.

Among the most picturesque is the North Bondi RSL club, which overlooks one of the most iconic locations in the country and is held in a trust by the local sub-branch.

The Deloitte report detailed an instance in which its members attempted to offer a $750,000 annual rent reduction to the club that leases the site from the charity.

While RSL sub-branches may own the land where an RSL club is established, it does not operate it.

However, the Deloitte report detailed "significant conflicts of interest" within the sub-branch because members also held roles on the North Bondi RSL club board.

"These dual roles have created an environment in which the interests of the sub-branch and club are often misaligned, leading to tensions and a lack of cohesive decision-making," it said.

The sub-branch offered the discount despite already operating at a loss of $130,564 the year the report was written.

"RSL NSW is investigating governance concerns relating to the North Bondi RSL sub-branch and is liaising with representatives of the sub-branch to conduct an audit," a RSL NSW spokesperson told the ABC.

'Fraud', a $400k sculpture and Korean veterans

Another of the claims singled out in the review involved claims of a "suspicious" invoice from the Pelican Flat sub-branch in Lake Macquarie.

The report detailed how a company registered to a sub-branch member had billed the charity for unauthorised air-conditioning work.

"The president of the sub-branch alleged that the [two members of the branch] had colluded to defraud the sub-branch of at least $44,000," the report stated.

The case was referred to NSW Police and was one of 18 matters presented by the RSL NSW to Deloitte as part of their review process.

Another allegation referenced by the auditor involved the Smithfield RSL attempting to spend $400,000 of charitable money on a sculpture.

"The request was rejected, but the sub-branch attempted to pressure the NSW RSL through their local member of parliament, further exacerbating the issues," the report said.

"The failure to adhere to charitable guidelines for spending may also result in financial penalties or reputational damage to the sub-branch and RSL NSW."

At the Lidcombe sub-branch, which the report said was "primarily made up of" veterans from the Korean defence force, charitable funds were being raised for the foreign former soldiers.

The RSL NSW was established in 1916 and overseen by an act of parliament supporting its work "exclusively reserved" for Australian veterans.

"As a result, the funds raised and allocated for charitable purposes could not be legally applied to these members as they were not ADF veterans," the report said.

Their charter, which gives a sub-branch authority to operate, was eventually revoked.

In Sydney's inner west, the Enfield-Croydon sub-branch faced criticism after its members used funds to subsidise theatre trips and race days for "camaraderie".

The trips raised concerns, Deloitte said, because they were "considered member benefits rather than activities for the broader veteran community".

The report said the sub-branch had been "struggling with the mismanagement of charitable funds and the misuse of its assets" at the time.

'Honest administrative mistakes'

In a statement, the RSL NSW said the charity relied on hardworking volunteers and that they were "veterans supporting veterans".

"RSL NSW has strong governance policies and procedures in place to support sub-branch office bearers to meet their regulatory obligations — and to identify and address issues," the spokesperson said.

"From time to time, honest administrative mistakes happen. When more serious concerns are identified by RSL NSW, appropriate action is taken.

"This might include formal investigations, remedial action — and, where necessary, disciplinary action or referral to the Australian Charities and Not-for-Profit Commission and/or police.

"While it is not appropriate to comment on historical matters relating to individual sub-branches (particularly those that no longer exist), RSL NSW can confirm that in each case the board has intervened to ensure the expenditure of funds aligns with our charitable purpose."

The Deloitte document emerged as a flashpoint internally within the charity over how better to oversee multi-million-dollar assets being managed by local volunteers.

The clash between the RSL NSW board and its local branches eventually led to three RSL NSW board members and its president resigning in October last year.

A 7.30 report into the stoush revealed the dispute centred around a "secret takeover" plan for the NSW RSL to gain control of its sub-branches' assets.

Two of the board members who resigned were set to face their own internal disciplinary hearings over a code of conduct complaint before they walked from the organisation.