Explosive meeting tapes show Parramatta Eels board members were aware of scheme to cheat salary cap

EXPLOSIVE tapes show that Parramatta board members, including CEO John Boulous, were actively aware of a scheme to cheat the NRL’s salary cap - and even discussed the word “fraud” in meetings.

• Hayne in London denies knowledge of illegal payments
• Buzz: He’ll be back in the NRL and playing for the Roosters
• Laurie Daley would consider Hayne for Origin

EXPLOSIVE meeting tapes show that several board members and senior management of the Parramatta Eels were actively aware of — and in some cases, actively participated in — an elaborate scheme to cheat the NRL’s salary cap over a period of at least two years between 2013 and 2015.

A copy of the NRL’s breach notice — exclusively revealed by The Daily Telegraph’s television partner Fox Sports — shows that members of the board even discussed whether “fraud” had taken place at the club in its thwarting of the salary cap.

The new material implicates the five Eels officials who have already been suspended for their roles in the Eels salary cap scandal: chairman Steve Sharp, CEO John Boulous, deputy chairman Tom Issa, director Peter Serrao and head of football Daniel Anderson.

Parramatta Eels chairman Steve Sharp avoids the media.

But it also threatens to snare other current members of the board, including former Parramatta MP Tanya Gadiel and fellow current Eels board member Andrew Cordwell.

At one point in a June 2015 board meeting, Gadiel discusses a third-party payment made by one firm to star former player Anthony Watmough, which was paid by the club to a third party through inflated invoices.

Sharp said the club was effectively paying the deal. “So she was going to increase her charges to us. So we are paying the third-party deal,” he said.

Gadiel says of the deal: “Sorry, that’s the f-word, that’s fraud isn’t it. That is fraud.”

The following exchange then takes place:

Sharp: It’s not fraud.

Gadiel (to Cordwell): What do you reckon?

Cordwell: It’s certainly fudging the figures, all right … we’re going out there … it’s a variation of how people breach the cap.

The explosive tapes — along with the boardroom minutes exposed by The Daily Telegraph in first uncovering the club’s conspiracy to cheat the cap that launched the NRL forensic investigation in March — confirm that the club knowingly lied in multiple declarations to the NRL that it was compliant with NRL salary cap rules.

In the club’s now infamous March 2014 board meeting, Boulous is discussed as the point of contact for ­directly sourcing third-party ­agreements. It is actively discussed for the club to directly source TPAs through a subsidiary called The Premiership Club.

TPAs are meant to be at arm’s length from the club and the board, but it is clear from the transcript of the tapes that senior officials are anything but arm’s length.

Parramatta Eels CEO John Boulous is heard clearly on the tapes.

Boulous talks at length about sourcing TPAs, and at one point remarkably says of references to The Premiership Club: “I think that should be taken out (of the minutes).”

Seward notes that the use of the club is “sailing as close to the wind as breaking the salary cap possibly can”.

Also in March 2014, Anderson talks of the importance of sourcing TPAs. Sharp’s reply is succinct: “We can get those. We’ve got to work hard to get those TPAs.”

In the June 2015 meeting, it is Issa who points to the enormity of the dodgy third-party deals when discussing a massive third-party payment to Anthony Watmough.

“Two years ago everyone came in and hit me and Steve (Sharp) up, and Daniel (Anderson), when Ricky Stuart left and we took over from (former chairman) Roy (Spagnolo),” Issa said.

Board member Tanya Gadiel appears to have also been caught in the scandal.

“The severity of those were so minimal compared to this that it’s ­absurd. There was fraudulent conduct conducted previously that we said no to. We said no to all the ones that were in that dirty laundry where you just turned around and said no.”

Shortly after, Cordwell is clearly agitated about the discussion, and asks to turn off the tape: “Can we turn off the recorder? Can we just turn it off? Is that possible? I just want to speak openly. Can you turn it off and suspend the meeting or something?”

Sharp replies: “It’s off, mate”

In a September 2015 board meeting, Serrao asks about the status of an internal inquiry by club internal investigator Rob Mulherin into “possible fraudulent conduct” and transactions involving third-party providers including Zibara Clothing, after warnings made internally by ­executives.

There is no suggestion Zibara has done anything wrong.

Sharp replies that he had spoken with Parramatta Leagues Club CEO Bevan Paul and club lawyer John de Mestre. “Their recommendation is we probably not proceed with digging up too many skeletons and all that sort of stuff.”

Gadiel backs the decision to bury the inquiry. “There’s got to be a point where we draw a line in the sand you know.”

Sharp replies: “Yes and it’s time now where we move forward and focus on our actions and view what we’ve done right and wrong, and move forward and forget about the past.”

Gadiel replies: “Yep.”

Originally published as Explosive meeting tapes show Parramatta Eels board members were aware of scheme to cheat salary cap