NSW Police investigate missing millions at Surf Life Saving NSW

Two Surf Life Saving NSW board members have temporarily stood aside amid NSW Police investigations into $3 million in missing funds at the water safety and sport organisation.

Almost three years since Surf Life Saving NSW was rocked by a multi-million fraud scandal, Sydney newspaper The Sunday Telegraph has today reported that NSW Police investigations into the missing money, which have seen more than 100 people interviewed, are understood to be close to finalising the case.

The organisation has also agreed to a range of governance changes to improve how board members are elected while also enlisting an auditing firm to conduct an expenditure reporting review.

Board directors will also be required to undertake a five day Company Directors Course and pass the associated assessment.

Designed to restore community faith in the organisation, the agreed measures followed a meeting between NSW Police Minister David Elliott, Surf Life Saving NSW Chief Executive Steven Pearce and President George Shales.

The establishment of Police Strike Force Splint followed a civil case between the organisation and its former General Manager, Matthew Hanks.

The NSW Supreme Court heard Hanks admitted to defrauding the organisation in his resignation letter on 13th July 2016 with the Surf Life Saving NSW estimating that more than $3 million was missing.

Hanks, who was a Human Resources Manager before being promoted to the role of General Manager, took around $8000 a week from NSW grants given to the voluntary organisation.

A freezing order was placed on a private company owned by Hanks, which owned two properties worth around $1.4 million in the Sydney northern beaches suburb of Newport.

A yacht worth nearly $500,000 was sold to help repay his debts.

The case was dismissed on 1st April this year, with no charges laid.

Two Surf Life Saving NSW board members - John Restuccia and Kerry Clancy - who were directors at the time of the embezzlement stood aside last week, although The Sunday Telegraph reports that neither are implicated in any wrongdoing.

The Sunday Telegraph quoted a "source" at Surf Life Saving NSW source advising that the recently re-elected members chose to temporarily vacate their positions, pending the completion of the investigation.

The source said NSW Police had indicated the investigation would be finalised by the end of this year.

Other governance measures to be implemented by the organisation include engaging the Australian Institute of Company Directors (AICD) to undertake an independent Board governance review.

Two independent directors would also be elected to the Board, including one female, with the appointments would follow a review of the Surf Life Saving NSW constitution to make the election of the board more transparent.

Price Waterhouse Coopers will also be engaged to conduct an audit and expenditure reporting review.

The Sunday Telegraph reported a NSW Police spokesperson advising that the investigation was ongoing.

The spokesperson stated “in May 2017, detectives from the State Crime Command’s Financial Crimes Squad and Northern Beaches Local Area Command established Strike Force Splint to investigate the reported misappropriation of funds by a former employee of Surf Lifesaving NSW."