Alarming corporate governance chasm at SFA

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Campbell Ogilvie was an executive director of Rangers for the first five years of their Employee Benefit Trusts and during their earlier illegally-executed tax avoidance Discount Options Scheme.  He received a ‘loan’ from a Rangers EBT, which he has not repaid and is not expected to repay, and recently described his company responsibilities during this period to a friendly journalist as being administrative, and then legislative.

He has been a director of the SFA for 22 years and is now president.

During the period when Ogilvie was director of both Rangers and the SFA the club illegally registered dozens of footballers with the SFA.  All directors are responsible for actions of a company, executive directors especially so.  Those who represent themselves as having administrative and legislative roles, absolutely so.

SFA chief executive, Stewart Regan, yesterday defended Ogilvie’s shameless refusal to resign by offering a defence which echoed Rangers ‘Craig Whyte acted alone’ defence, which was comprehensively dismissed by the SFA Judicial Tribunal.

Regan said, “We have had very clear feedback that the president was not involved in any letter or correspondence with regards to player EBTs.

“We are all aware of businesses being run where you have one owner and operator running the club and a number of directors sitting below. The way this process has been managed, a lot of this correspondence was done much higher up the chain than Campbell Ogilvie.”

This is cringe-worthy nonsense and gets to the heart of the lack of corporate governance at the SFA. Mr Regan is not qualified to assure us that Mr Ogilvie has no case to answer. That is not a judgement for him to make and is certainly not an inference that can be made on the basis of private comments from Mr Ogilvie or other former Rangers directors similarly contaminated by this issue.

Before the chief executive can state as fact how Rangers conducted their business, and the limited involvement of Mr Ogilvie, some form of inquiry must have taken place. No such inquiry happened.

“We have had very clear feedback”, said Mr Regan. Who is “we”, was it an independent panel that received this feedback, or did Mr Regan deal with this personally? Who gave the feedback? Was Mr Ogilvie subject to the same independent scrutiny as anyone else in the game, from Neil Lennon to Craig Whyte, or was this passed off with a handshake?

Mr Regan’s failure to recognise the serious corporate governance failures in his conduct is alarming. We don’t need this guy to know the offside rule but he has to understand good corporate governance requires questions against your president to be openly and independently investigated.

When these are our standards, what else is the executive turning a blind eye to?

Mr Regan was careful to limit his claim on what Mr Ogilvie was not party to. “We have had very clear feedback that the president was not involved in any letter or correspondence with regards to player EBTs” sounds like a substantial piece of information but it’s not.

This only claims that Mr Ogilvie did not author any side letter or contract relating to an EBT, which is not in doubt. The important issue is clearly Mr Ogilvie knew dozens of players had EBTs, he knew football players’ remuneration is subject to detailed written contracts and he knew all money paid to a player, from any source, in relation to football, must be detailed on his contract and registered with the SFA.

For Rangers players’ EBTs to be consistent with SFA and Fifa requirements they would need to be completely discretionary, an optional extra the players were unable to rely on. Mr Ogilvie, the Great Football Administrator, knew all of this.

Instead of good corporate governance we appear to have a self-certified president – we know Mr Ogilvie did nothing wrong because Mr Ogilvie said he did nothing wrong. He is at once, a Great Football Administrator and unaware of the football administration actions of the company he was legally responsible for.

Ogilvie was an executive director of Rangers.  It was his responsibility as a director of Rangers to ensure that the club contracts and legislative responsibilities were conducted in a proper manner.  He was simultaneously a director of the SFA.  It was his responsibility as a director of the SFA to ensure the Association was run in an even-handed manner, that one club – his club or any other – could not load the dice.

Regan went on to say “Since February 14 he has had no involvement at all in any board meetings, any decisions or any meetings with the club.”

It is reassuring that he has withdrawn from an important part of the legislative process of the SFA but his prominent participation in yesterday’s AGM confirms that his influence in other areas remains.

Regan added “[EBTs] are illegal if they are used knowingly in an incorrect manner. That is something we are still waiting for facts on.  But I am satisfied that Campbell has discharged his duty of care.  He has done everything we could have asked of him and, so far as his integrity is concerned, he is a man with many years as a highly respected administrator across the game of football in Scotland.”

“So far as his integrity is concerned….many years …. respected administrator”.  Those words may bring to mind all those years Ogilvie was at Ibrox while Rangers sectarian signing policy was in place.

Regan dismissed calls for his own resignation, no doubt confident he can self-certify his performance.

I am hugely reluctant to open a political debate, but does the painful lack of accountability and scrutiny in Scotland not alarm you? The actions (inactions) of Ogilvie and Regan would never be accepted in England, where structures exist to hold officials to account. As a relic from Rangers sectarian signing policy days, Ogilvie would be regarded as an embarrassing dinosaur, he would never be made president! The ability for officials to state facts without an inquiry would never be tolerated.

We look more like a rotten borough than a country with the mechanisms necessary to nurture a successful state. Where’s your voice now, Mr Salmond?

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  1. Bookies Pen for a Button on a Blazer on

    wonkyradar on 7 June, 2012 at 21:04 said:

     

     

    I had been saying for a long time that I didn’t understand the logic of good Celtic supporters posting constantly on the internet for the past umpteen years that THEY were heading full speed to their doom and even suggesting what needed to be done to avoid the inevitable. Pleadings to desist were ignored, but it was me that got it wrong! I really really really didn’t understand the extgreme dep[th of stupidity on planet hun! We’re talking breathtaking man.

     

     

    I am awestruck :)))))

     

     

    Chemical Bros – Push The Button

  2. lennybhoy

     

     

    The most confusing thing is that there were 2 slightly similar resolutions.

     

     

    17.1.4 stated:

     

     

    “The Joint Administrators propose the following – that the Joint Administrators can explore any and all options available to realise the assets of the Company without recourse to creditors. The Joint Administrators be authorised to conclude a sale of the whole, or part of the business, property and assets of the Company without having to obtain the sanction of the Company’s creditors at further creditors meetings, upon such terms as the Joint Administrators deem fit and they be authorised to liaise with all relevant parties, bodies or organisations which they deem relevant for achieving that purpose.”

     

     

    This was approved and at first glance it appears that the resolution allows D&P to sell the assets without any creditor blocking the sale, hence the £5.5m to D&P.

     

     

    The other resolution 17.1.8 says:

     

     

    “That the Joint Administrators are authorised, subject to implementation of a CVA, to conclude a sale of the whole, or part of the business, property and assets of the Company, without having to obtain the sanction of the Company’s creditors at further creditors’ meetings, upon such terms as the Joint Administrators deem fit and they be authorised to liaise with all relevant parties, bodies or organisations which they deem relevant for achieving that purpose.”

     

     

    This one says that D&P can only sell assets subject to CVA approval.

     

     

    I don’t understand how both can make sense. Paul McConville’s view is that 17.1.4 is void and that 17.1.8 is all that matters and if CVA rejected then this step is removed and straight to liquidation.

     

     

    It however wouldn’t surprise me if D&P were deliberately obtuse in the drafting of the resolutions but very surprised that no-one has picked this up. Paul McC says that it might have been a typographical error and that something was missing but I find that a bit hard to believe that they could be that incompetent.

     

     

    Think this may play out in the courts.

     

     

    Mort

  3. celtic heritage on

    sparkleghirl – that may be what they want – but I don’t think they are going to get it. Its back to who is prepared to kill them off. SPL/SFA are hoping HMRC do it for them – or that it all goes away!! Too much happenned for that to happen – so they are going to have to deal with the mess eventually.

  4. jude2005 is Neil Lennon \o/ on

    Regan said Ogilvie was Rangers secretary but he wasnt invloved in any of the correspondence relating to player EBT’s.

     

     

    The Oxford Dictionary describes a secretary as a person who is employed to handle CORRESPONDENCEand manage routine administration work for an individual or organisation.

     

     

    What the hell was he doing everyday in the big HOOSE??

  5. From @GerryBraiden on Twitter:

     

     

    A full month after being accused of heel dragging, D&P yet to deliver Whyte takeover docs to cops, according to chief constable.

     

     

    BigHooseRightEnough CSC

  6. Bundoran Bhoy – Saying NO to Newco!! on 7 June, 2012 at 21:31 said:

     

     

     

    Yogi on 7 June, 2012 at 21:28 said:

     

     

    read my post just after ;-)

     

     

    Was speaking to your brother today mate

     

     

    HH

     

     

    Yeh noticed that after i posted, nae luck meeting my bro LOL

     

     

    HH

  7. Bundoran Bhoy – Saying NO to Newco!! on 7 June, 2012 at 21:48 said:

     

     

     

    Yogi

     

     

    You not talkin to me buddy? lol

     

     

    HH

     

     

    Had went for shower mate.

     

     

    HH

  8. Clashcitybhoy on

    Re the debate earlier this week on the coaching vacancy at CP.

     

    Anyone think Paulo Sergio could be an asset to us ?

     

     

    He did a good job at hertz under difficult circumstances , he knows the Scottish game , he has experience from several European leagues.

     

    Importantly, NL always seemed respectful towards him in pre / post match chat.

  9. I knew mate, although i will be really offended next season if you refuse my freebie season ticket again….LOL

     

     

    HH

  10. Quick post with a quick synopsis.

     

     

    Stewart Regan – Excramenting himself due to being fearful of being attacked or sent a parcel.

     

     

    Neil Doncaster – Excrementing himself due to being fearful of being attacked or sent a parcel.

     

     

    HMRC – faceless organisation.

     

     

    Maybe i give SR & ND too much credit but considering what Neil Lennon had to put up with just because a) they didnt like him and b) he was looking likely to win the league in WS’s last season just imagine what lengths they might go to to destroy any identifiable person who killed off their club?

     

     

    MWD

  11. Stringer Bell on

    Lifted this wee snippet from an article on the celtic paranoia blogs pot, it’s reproduced from the record, circa 1998.

     

     

    “Listen to this Fergus and try to take it in. You insult your club’s fans when they are told they don’t understand the economics of the business or the workings of the transfer market. And stop telling them players are too greedy and make enormous demands.

     

     

    These are not newly-uncovered secrets, Fergus. The supporters could have told you how much would have to be spent to keep Celtic on top. The fact is fans don’t give a damn about how much money players want to grab for themselves and unlike McCann they don’t spend too much time fretting about the profit margin.

     

     

    No one is greatly impressed either that McCann appears to have embarked on some kind of holy crusade to bring football’s expenditure under control, and his season- ticket holders would rather have the title with some debt run up on the transfer market than no title and no borrowings.

     

     

    These fans are willing to gamble, and remember they, too, are shareholders.”

     

     

     

    Bet you feel even stupider now, mr traynor………

  12. Its funny how this arrogant lawless disregard for basic civilized rules & business protocol is paralleled in the corruption of Wall Street, The City & the Banking fraternity. Ordinary folk & the normal “low level” business guy are nothing to these Oligarchs that style themselves as Masters of the Universe. What is going on in London, with Jamie “Whale” Dimon, and JP Morgans inflation/monopoly of gold/silver/metal markets is THE major global scandal of today. Goldman Sachs, driven on by guys like Blankfein, are collaborating and consolidating the commodity markets for the Banking Class. The worlds largest Global banks effectively own all the major world commodity’s we all need- which means they can control, or more accurately inordinately influence the prices of nearly everything that is out there.

     

     

    Whytey, Sir Minty, Agent Green et al are all of this arrogant deluded semi-psychotic ilk- they believe normal everyday rules for the “little man”, such ss paying tax etc do not apply to such esteemed worthies as themselves- these Supermen have abrogated an alternative destiny to themselves that does not include accountability

     

    to the law.

     

     

    No man is above Law. Even bloated Kleptocrats.

  13. Brogan Rogan Trevino and Hogan supports Kano 1000 on

    Stringer Bell

     

     

    If I remember correctly that article that you are quoting from ended with Jim Traynor describing McCann/Celtic’s latest “cheap” signing as a disgrace and said something like that the signing demonstrates that McCann was cheating or deriding the fans of the club.

     

     

    The “Disgrace” in question was someone atht no one had ever heard of… complained Traynor. His name was Lubo something……….. or other!

  14. 67Heaven ... I am Neil Lennon..!!..Truth and Justice will always prevail on

    TET

     

     

    “The whole country reeks of the stench of hunnery.”

     

     

    Certainly true of the Football Establishment……!!!!!…….and it’s landed them in some mess…….!!!

  15. 67Heaven ... I am Neil Lennon..!!..Truth and Justice will always prevail on

    Is the timing of Sergei quitting hearts a co-incidence….???

  16. SFFS

     

     

    My point is that those excramenting themselves await HMRC axe to fall. If/when HMRC kill off the huns they, the Huns, will have no identifiable person whom they can determine to have killed their club.

     

     

    With HMRC they might spit on windows. Maybe even break a window, kick a door or shout at a building. But as an identifiable individual HMRC are faceless. SR & ND are relying on HMRC IMHO.

     

     

    MWD

  17. Knoxy2000 ,

     

     

    welcome to the Kano Euro Predictor – you are No 100 .

     

     

    How’s wee Oscar ?

     

     

     

    PS That’s not to demean the other 102 who have joined – just wanted to mark a milestone.

     

     

    Sanna (clutchingatstraws csc)

  18. 67Heaven

     

    The footballing powers in scotland are hunnery, always have been, won’t say always will be, you never know what is around the corner.

  19. Awe_Naw_No_Annoni_Oan_Anaw_Noo on

    MWD

     

     

    Isn’t that what Craig Whyte signed up for. Murray knows for sure how stupid the huns are.

     

     

    HH

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