RSL members will be forced to vote for a new state leadership without knowing the outcome of an investigation into recent financial scandals that have left some of the leadership candidates under a cloud.
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More than six months after financial allegations began to surface, the NSW RSL has revealed that Ian Callinan, QC, the former High Court judge chosen to head the league's internal inquiry, needs additional powers to avoid the probe's being toothless, causing an additional delay.
Sources close to the process have confirmed that the inquiry is not expected to make findings until at least mid-year, well after the planned state congress in late May at which a new council will be elected.
Meanwhile, Fairfax Media has confirmed growing frustration within the NSW government over the saga, with Veterans Affairs Minister David Elliott believing that the state RSL has shown insufficient transparency and goodwill, sources said.
The RSL's solicitors have asked Mr Elliott and Regulation Minister Matt Kean to give Mr Callinan the power to compel witnesses to appear and testify, and subpoena documents. It is understood the request was made after Mr Callinan reached the view that the RSL's own constitution gave him little power and feared some RSL members subject to the probe would refuse to co-operate.
The new powers would be granted under NSW charities and fundraising laws and would make it an offence to refuse to comply with Mr Callinan's inquiry.
The investigation will look at former state president Don Rowe's credit card expenses of $475,000, including more than $200,000 in cash withdrawals and, crucially, how the state council handled questions about these payments at the time. Mr Rowe was allowed to quietly resign, citing health reasons, in 2014.
It will also consider some council members receiving shares of consulting fees totalling $2.5 million from the league's aged care arm, RSL LifeCare, despite holding voluntary positions.
The entire council has stood aside pending the investigation, with a three-person caretaker management team left in charge.
Seven existing NSW councillors are running for re-election next month, including stood-aside president John Haines, who did not receive LifeCare payments but was NSW vice-president at the time Mr Rowe's credit card spending came to light.
Despite having stood aside, Mr Haines attended a meeting of district council presidents on March 31 and had to be removed from a national council board meeting in Melbourne last week after he showed up.
One councillor who is seeking re-election, Bob Crosthwaite, did receive LifeCare consulting fees, according to documents lodged with the charities watchdog.
The state council is attempting to force out CEO Glenn Kolomeitz, who raised the alarm on the financial issues and established a forensic audit in September.
Mr Kean confirmed he had received the correspondence from RSL NSW and said the government "takes very seriously any allegation regarding the misuse of RSL funds, and any breach of the Charitable Fundraising Act".
"I have sought advice on what steps I can take to address this issue and have instructed Fair Trading to go after anybody who has broken the law," he said.
The RSL NSW did respond to written questions by deadline.
