Nearly half the South Australian RSL board has quit over a row with RSL President Dave Petersen

The South Australian RSL board is in disarray over claims president Dave Petersen committed funds without board approval - a claim he categorically denies.

The South Australian RSL is in turmoil after nearly half its board members left the beloved organisation amid a clash with the current president Dave Petersen.

In an explosive letter, leaked to The Advertiser, Mr Petersen has been accused of “unilaterally committing RSL-SA funds … without board approval” and instigating the removal of former chief executive David Grenvold – leading to his ousting 5-4 in a board vote.

Mr Petersen strenuously denied the claims, laid out in the letter, saying they were “patently untrue” and “literally defamatory”.

It is understood three board members withdrew their nomination for reselection including Lance Bagster, Brad Flaherty and John O’Grady.

Former board member Greg Crotty resigned in protest while Brad Rea is believed to have left for personal reasons unrelated to the current feud.

President of the RSL SA/NT state branch Dave Petersen was suspended for 12 months from the Victorian RSL board, a matter which was undisclosed to South Australian board members. Picture: Supplied.

Mr Petersen said the board was not in disarray and that the resignations were the result of disagreements to terminate the contract of Mr Grenvold.

“A minority number of the board left,” he said.

“Why? Because they lost one vote.”

But Mr Crotty said it was the way in which the matter unfolded, calling it “unsavoury”, which ultimately led to his resignation.

Mr Petersen has also been accused of expending RSL funds without initial approval by the board, including the establishment of a yacht club chapter for RSL veterans.

Mr Crotty claimed “while the board agreed in principal” to establish the club, “there was no process laid down for how that was to happen”.

Mr Petersen said there was no wrongdoing and that he was operating within his delegated authority as president to contribute funds from the RSL.

“The decision was to establish the chapter,” Mr Petersen said.

“The memorandum of understanding was presented to the board subsequent.

“That was a unanimous decision and subsequent to that approval a memorandum of understanding was signed between a yacht club and the RSL in South Australia to facilitate veteran sailing.”

Mr Bagster said the decision to “unilaterally sign” a deed between RSL SA and the yacht club created an “ongoing financial commitment” for the RSL, which the board had not approved.

“That was an ongoing commitment we became obliged to pay,” Mr Bagster said.

Lance Bagster said the decision to “unilaterally sign” a deed between RSL SA and the yacht club created an “ongoing financial commitment” for the RSL, which the board had not approved.

The leaked letter also alleged Mr Petersen was suspended for 12 months from the Victorian RSL board, a matter which was undisclosed to South Australian board members.

Mr Petersen confirmed he had been suspended, but declined to comment on the details surrounding why or when the suspension was served.

“I was suspended in Victoria many, many years ago … as per the directions of RSL Victoria,” he said.

“That suspension was completed.”

Asked if he was suspended while running for president of RSL SA, Mr Petersen said “absolutely not”.

RSL Victoria declined to comment on the matter citing “privacy considerations”.

Mr Grenvold was contacted for comment.