The troubled Otago Rugby Football Union attempted to set up its own trust to distribute pokie profits from Auckland-based bars to Carisbrook, it has been revealed.
Documents obtained by the Otago Daily Times under the Official Information Act reveal the union was involved in an application to obtain a pokies licence in 2003, via the Murrayfield Sports Trust.
The Department of Internal Affairs declined the application in late 2004 following concerns over the influence the union had over the trust, which was set up to distribute pokie funds.
"In summary, we are not persuaded that the ORFU's capacity to influence the arrangements it created is sufficiently diminished to satisfy us that compliance with applicable regulatory requirements will be maintained," the decision concluded.
The trust was set up to distribute pokie profits from three Auckland bars, in Manurewa, Point Chevalier and another in the central city - known collectively as the "Jokers Group", which were bought via another company with strong links to the union.
"The proposed Jokers sites are not acceptable to the department. Notwithstanding the elaborate arrangements that have been set up, we believe [ORFU] is the beneficial owner of, and has the ability to exert significant influence over, the various entities, including the Jokers sites," an Internal Affairs decision noted.
Under the proposal, Murrayfield Sports Trust would distribute 80% of pokie profits to amateur Otago rugby, while the remaining 20% would go to other charities.
"Early in the communication with the department, the trust indicated that it wished to use some of the gaming machine profit for expenditure on Carisbrook stadium in Dunedin."
Internal Affairs said funds going to Carisbrook would be "inappropriate, as Carisbrook stadium can be used for commercial gain by ORFU".
"Therefore, this could not be considered funding of amateur rugby in the Otago region."
Auckland-based lawyers sent submissions on behalf of the trust, but Internal Affairs declined to issue a licence.
"The ORFU has confirmed that they set up the structure to secure funding from specific venues [the Jokers sites]," Internal Affairs noted.
It remains unclear who was behind the the trust and the purchase of the three bars, which have since changed hands.
The ODT understands following the failure of the trust to get a licence, the Jokers bars were changed to another trust - The Trusts Charitable Foundation.
That trust was responsible for more than half of the $5.1 million in pokie grants given to the ORFU between 2005 and 2010, which were designated solely for the amateur game.
Last week, a spokesman said Internal Affairs was not investigating the union.
A $200,000 fall in budgeted pokie grants was identified as a major funding shortfall for the union, which faces liquidation.
