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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942 Comments

  1. 'crushed nuts?' 'Naw, Layringitis!' on

    So here we are, the end of the end. HMRC have appointed the undertakers, RFF are down the co, buying the purvey. A pauper’s service, an unmarked grave, no flowers, no donations….

  2. Bloke109

     

     

    Cough, splutter….no idea m’lud!!!

     

     

    Never, ever again J but it was braw at the time :-)

  3. Bloke109

     

     

    I’m too old for it now. I know my youthful looks would place me in the 18-30 age bracket but alas that is no longer the case!!

  4. Sixteen roads to Golgotha on

    hamiltontim on 8 June, 2012 at 00:30 said:

     

     

    They seem to have a rather unhealthy obsession with all things Celtic for some strange reason.

     

     

    I have read that wretched Newcastle fanzine and there are more articles written about Celtic than Newcastle.Maybe just to get hits on their diabolical excuse for a football blog.

     

     

    They have quickly become my most disliked team in the world.(the huns no have ceased to exist in my mind,they are a non-entity)

     

     

    One thing i am certain of is this – Lenny reads these pages,so anybody that posts team selections,formations etc. – keep it sensible,you never know your luck,it could be your Celtic team running onto the park in the future.

     

     

    Good luck and goodnight to all Celtic supporters.

     

     

    Slan.

  5. Night fellow Tims off to dream about their demise ( well it can’t be real can it? ) .

     

     

    Ok off to stay totally conscious about their demise then :).

     

     

    Hail Hail!

  6. skyisalandfill on

    Just back from listening to live jazz, drinking beer and Whisky so please forgive the following if it fails to make much sense.

     

    Ella is singin my funny valentine on the iPod.

     

    I’m picking up a much more positive feeling on cqn tonight, they are imploding, I hope.

     

    One day I’ll write a long post. Not tonight

     

     

    HH

     

     

    SIALF

  7. Just a wee poser for Mr Murray and all those still trying to argue that they always thought that the EBT scheme was legit:

     

     

    If you always considered the scheme to be totally legit, why did you hide them from the other directors of the club and from the SFA etc…?

     

     

    A rather obvious question really.

  8. Morning my Celtic friends and a happy Friday to ye all.

     

    Off to Derry for the weekend so the weather don’t matter to moi as I’ll be reinforced by the craic!

     

    Hx2

  9. Today the rankers are an additional £24mill in debt, king wants £20 and HMRC an additional £4 mill in fines, I trust CQN’ers will be hooping it up, the end is nigh!

     

    Hx2

  10. Vmhan –

     

     

    Have a great time in Derry mate.

     

     

    If you happen to venture into the Bowery Bar, tell Mary . . . Harlem Tam is asking for her.

     

     

    :~)

  11. Tom McLaughlin on 8 June, 2012 at 06:18 said:

     

    ……….

     

    Morning Tom, I’ll have a magnum of champers when that happens mi amigo!

     

    A CH, striker and FF signing up would be nice while we watch their demise!

     

    Hx2

  12. Good morning friends and a Big Happy Euro Friday to one and all from adecidedly wet,breezy and dark grey East Kilbride. Looking forward to the Poland v Georgious game this evening.

  13. Tom M

     

    My reason for asking is that I ken you’re in Aus so the Bowery may be gone or renamed, I’ll ask around and let ye know.

     

    Hx2

  14. Mountblow tim on

    Good morning CQN from a wet and windy Clydebank

     

     

    Paul another stunning article

     

     

    Ranger directors, SFA, SPL, and MSM are all guilty of turning a blind eye to what was going on in

     

    The big house

     

     

    The whole vipers nest should be taken to task for allowing this to go on

     

     

    Traditionally UK courts have been very reluctant to allow a person to claim that his ignorance of the law is a defence to a criminal charge. This is true where even where it would have been almost impossible for the defendant to know the law (e.g., it changed while he was out of the country).

     

     

    Keep the Faith

     

     

    Hail Hail

  15. BDO

     

    Bitter Dead Orc

     

    Better Dead Orcdome

     

    Breaking Dead Orc!

     

     

    BDO = the acronym that just keeps on giving……

     

     

    Remember CQN today’s Friday so whistle while you work….

     

     

    Hx2

  16. twists n turns on

    Morning CQN

     

     

    Latest news from the ‘Tesco in waiting’ stadium is very heart warming I must say. Liquidation. Aint that a lovely word?

     

     

    Nice to catch up with PF Ayr and big John, Chris 1888 and Gerrybhoy at Hamilton. Almost as nice as it was relieving the bookies of some of their cash. We didn’t quite liquidate the ‘enemy’ but pushed them close to admin I suspect :-)

  17. Some twitterings

     

     

    Thai Tims….Just filmed ‘Rocky Road to Poland’ at school, youtube later today.

     

    Hx2

  18. Brogan Rogan Trevino

     

    @BroganRoganTrev

     

    Did Rangers ever pay Director Dave King through an EBT, and if not– why not?

  19. Lifted from twitterland

     

     

    Celtic pre seasons see’s us face Ajax, Inter Milan and Real Madrid Rangers pre season see’s them face courts, liquidation and death

     

     

    Hx2

  20. Morning all

     

     

    Any ozzy tims online

     

     

    Trying for 2days to book setanta so I can watch the euros and can’t get through at all.

     

     

    Be really really gutted as I’ve booked week off work to watch it.

     

     

    Thanks

     

    Proud of my country proud of my people

  21. BDO =…

     

     

    Bang! Dead Orcs!

     

    Bringing Down Orcdome

     

    Be Dead, Orcs!

     

    Bad Day, Orcs!

     

    Brutal Destruction (of) Orcs.

     

    Beautiful Day – Orcmageddon!

  22. proudbhoy –

     

     

    Man City fan in my office phoned this afternoon and gave up after being on hold for 45 minutes.

     

     

    He tried later and apparently the line is unobtainable.

     

     

    I believe you can subscribe online though.

  23. Son of Warsaw on

    Have asked before, have the Duffers paid any tax or Paye to Hector since they took over ?

  24. Morning,

     

     

    Still laughing at those statements from King & Green.

     

     

    Green stating he has put in significant funds already. Yeah, a loan from a company called Sevco.

     

     

    Also sat face to face with the bares saying he would not sell rangers assets. That is because HMRC have beat him to it!

  25. Son of Warsaw on 8 June, 2012 at 07:32

     

     

    According to the latest press release from Duff and Duffer they have paid all due taxes since taking over and the £4m increase in the tax bill is entirely due to additional interest on the outstanding £14m.

  26. Son of Warsaw

     

    Someone posted a response last night claiming they had payed tax and the increase in tax owed was due to penalties and interest applied.

     

    Hope that helps

     

    Hail Hail

  27. I don’t have much time for tax dodgers but to be fair(ish) to Dave King he seems to be the only genuine Rangers supporter during the Murray era to have actually put in substantial amounts of his own money (well, OK maybe it was SA tax payers money!!) in to rangers.

     

     

    David Murray used bank money and took out millions, the rest of them were salaried, the supporters responded to a share issue by looking collectively at their shoes but Dave King did actually part with a large wedge of his personal dough as far as I know. So he may well prove a bigger spanner in the works than Whytey or ticketus come the final reckoning.