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

     

    ======================================

     

    What they haven’t done is sell any assets or cut any costs in order to pay any of the back taxes owed. I’m not sure that will play well with HMRC.

  2. Polis dragging their heels going after rangers.

     

     

    One Nation…

     

     

    also emerged yesterday that Duff &

     

    Phelps have yet to provide police with all

     

    the required documentation relating to

     

    Whyte’s takeover, a month after being

     

    accused of dragging their heels over

     

    requests for information and Strathclyde

     

    Police Chief Constable Steve House told

     

    members of his governing body that he was

     

    not holding out for any of the £50,000 the

     

    force is due from the club from any CVA.

     

    Senior police sources say there is “a fair

     

    amount of heel kicking” within the force and

     

    that the investigation has stagnated. The

     

    source also said that Duff & Phelps had

     

    prioritised its civil action against Whyte’s

     

    lawyers, Collyer Bristow, but added that as

     

    the administrator’s were court appointed

     

    they were duty-bound to provide the

     

    information.

     

    “We are still waiting for extra detail from

     

    the auditors to fully satisfy ourselves as to

     

    what’s happened,” Mr House said.

  3. Tom McLaughlin on 8 June, 2012 at 07:26 said:

     

    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.

     

     

    Thanks tom

     

     

    Have tried online but says smartcard number invalid, have checked smartcard number with foxtel who say it is correct but they cannot contact setanta for us.

     

     

    Sent email to setanta but not holding my breath . Seriously bad customer service.

     

     

    Making not being in Ireland /Poland for the tournament a lot worse.

     

     

    Proud of my country proud of my people

  4. Good morning CQners,

     

     

    I’d some time on my hands this morning so I’ve gone through the Euro fixtures and no matter how I try I can only come up with one winner, England.

     

     

    Roy Hodgson’s anti-football tactics of 2 banks of 4 emulate Chelsea’s tactics and I fear they’ll have the same successful outcome. I’ll console myself that my bet will help me through the purgatory of watching this in England amid the increasing hype.

     

     

    Should my calculations come to fruition it’ll have comic benefits in watching yet another u-turn by Cameron and his government who’ve decided to boycott the group stages of the tournament.

  5. If only…

     

     

    No less than seven clubs are reported to be

     

    interested in the services of Celtic striker

     

    Georgios Samaras. The Italian media are

     

    claiming that Juventus, Palermo, Bologna,

     

    Chievo, Fiorentina, Udinese and German

     

    outfit Werder Bremen are all on the trail of

     

    the Greek international striker.

  6. This whole rankers charade has been going on for a while, if I am honest I am prepared for the worse – CVA being accepted. I think by being pessimistic now would be less heartbreaking shoul rankers survive (I hope they do not!!).

  7. liked the comment on q time last night re orcs tax case…

     

     

    Inverness did us proud…. o))

  8. Mullet and Co on

    Have taken a sabatical from CQN due to the void that has been created by the CVA being out, getting an Ipad and having literally no work life balance. I needed to catch up on work and now seemed like a logical time as the CVA has created a wee boring intermission.

     

    Campbell Ogilivie must be asked to step down. Time is a great healer but Stewart Reagan can’t surely be hoping that matters will resolve themsleves without him taking any hard decisions. This crisis is engulfing the SFA and surely they realise that this ‘weekend at Bernies’ charade can’t go on much longer. Soon the vultures will swoop to pick over the long dead Rangers.

  9. sixtaeseven: No NewClub in SPL and it's Non-Negotiable! on

    Morning all from gay Paree, could get some thunderstorms later, not good for the tennis (20C max.)

     

     

    Just had a quick browse through what passes as the “kwality” Scottish papers (on-line version obviously).

     

    Thank God for sites like CQN and others, where the latest news gets out fast and is analysed with no holds barred.

     

    It’s hardly surprising the MSM is suffering a slow painful death.

     

     

    Not a single mention of BDO, the latest acronym to appear on the scene, but one that could signal the end of the show.

     

     

    BDO, the Blender Driven Organisation.

     

     

    RFC(ia): Time to Pay the Wages of Sin

  10. Was working down in deeepest Ayrshire yesterday, surprising to see how much bunting and butchers aprons were still about these we toons. Lost my cool going through Barhill on my way home. If anyone knows the route through here towards Beith, there is a pub at the top of the road where you have to turn left then right to pass it. I seen the flags from far off plus the 3 orcs who were outside. No problem.

     

    When approaching the pub I noticed an ugly wench hanging out her wundow with a massive Hvn flag with 50 on it. I rolled out the window and belted our “Rankers till July” she smiled and obviously did’nt get my version of the song. until I repeated it. Haha you should have seen her face.

     

     

    Stupid hvns

     

     

    No to Newclub

     

     

    HH

  11. I dont think that a CVA will be passed by the creditors which will lead to liquidation,the question then becomes how much are they worth in liquidation to a buyer, someone who as yet has not shown his hand may get the assetts at a knock down price, they start off debt free as a newco but without their history, so in effect writing off their debts via liquidation to creditors will cost them their history.

     

    I console myself with the thought they were sold for a £1 and anyone who wanted them would have moved in then.

  12. saltires en sevilla on

    Good morning fellow Celts from wet and windy London Town

     

     

    A distinct lack of the oul’ Butcher’s Aprons this weekend

     

     

    St George’s cross everywhere for Euros …Russia at my dark horse at 20’s (ew)

     

     

    Germany to win

     

     

    HH

     

     

    M

  13. jungle jam67 on

    sorry if posted early .

     

    reminds me of someone we all know well……;))))))

     

     

    A man found guilty of avoiding tax and national insurance contributions totalling more than £600,000 has been jailed for five years.

     

     

    Stephen Maxwell, 53, of Dalbeattie, had denied committing the offence between April 1999 and May 2008.

     

     

    However, he was found guilty by a jury following a six-week trial at Kirkcudbright Sheriff Court.

     

     

    His jail term was backdated to March and a proceeds of crime hearing was adjourned until August.

     

     

    Maxwell was originally charged with avoiding payments of more than £1.7m.

     

     

    However, that amount was subsequently reduced and charges against his wife, Susan, were dropped.

     

     

    Maxwell, who was said to own offshore companies in the Isle of Man and Gibraltar, was also accused of putting assets beyond the reach of creditors, in particular HMRC, by purchasing Barncailzie Hall at Springholm, near Castle Douglas.

     

     

     

    Advocate Andrew Murphy said the scheme was not his client’s invention, but he had persisted in it for a number of years.

     

     

    He said Maxwell’s accountant and financial advisers had brought him into the offshore scheme which was the basis for the indictment.

     

     

    “Even to tax experts it is a law which is complex,” he said.

     

     

    “His error was maybe, at an early stage, he did not seek sound advice about the legality of the scheme and this was compounded by not being up front with the income tax and bankruptcy.

     

     

    “He made no effort whatsoever to make payment, and once into the scheme he did not seek a way of finding a way out.”

     

     

    Continue reading the main story

     

     

    Start Quote

     

     

    The tax system depends on people being honest but Maxwell consistently tried to conceal his income.”

     

     

    David Odd

     

    HMRC Assistant Director of Criminal Investigation

     

    Mr Murphy said Maxwell had simply “blindly carried on” and hoped not to be discovered.

     

     

    “He was obsessed with computers and it seems he had a high talent, which was probably wasted,” added Mr Murphy.

     

     

    “He revelled in solving computer problems and worked seven days a week and all his holidays.”

     

     

    Mr Murphy said that the scheme had not brought Maxwell financial rewards and he had lost everything, including his house in England and his house and estate in Dumfries and Galloway.

     

     

    However, Sheriff Kenneth Robb said he did not agree that nobody had been harmed by the offence.

     

     

    He said that in an age of financial constraints, £635,000 was a lot of money which could have helped the public purse.

     

     

    He told Maxwell: “You have enjoyed the fruits of your labour and the tax that you should have paid.

     

     

    “The tree may be bare, but you used the fruits over many years.”

     

     

    David Odd, HMRC’s assistant director of criminal investigation in Scotland, said: “This was a case of deliberate and systematic fraud.

     

     

    “The tax system depends on people being honest but Maxwell consistently tried to conceal his income.

     

     

    “Income tax fraud is not a victimless crime and HMRC take a very serious view of anyone who acts in this manner.

     

     

    “We have robust procedures to identify abuse of our tax systems and are committed to pursuing any such fraud vigorously.”

  14. Goodly, slightly overcast morning in The Chilterns…

     

     

    RobertTressel @ 07:40,

     

     

    Interesting viewpoint on Dave King.

     

     

    My take on the Third Man is he probably had a greater input over the piece than we know of.

     

     

    However I believe you are correct as far as a dyed in the wool Ger goes, he is the true fan in the parcel, and he ponied up with the cash.

     

     

    Yet there is no chance of D&P excepting his claim and granting him creditor status. He raised this issue a few months ago (and if it had any chance he would have vigorously persued it then) BlantyreKev clarified a post of mine by stating it had little/no merit.

     

     

    In my opinion the aul’ bluenosed philanthopist left it ’til now because he knows the games-a-bogey and is posturing for posterity.

     

     

    Hail! Hail!

  15. Dontbrattbakkinanger on

    Fingers crossed the views of Mr Odd are held by all of HMRC [which I expect they are].

  16. OK Timland I think we need to organise a hat to raise the money to buy Ibrox in the asset sale.

     

     

    The possibilities for its use after that can be decided later, but we could either plant tatties or plant tatties or mibbie plant tatties even!!!!

  17. saltires en sevilla on

    greenjedi on 8 June, 2012 at 08:42 said:

     

    OK Timland I think we need to organise a hat to raise the money to buy Ibrox in the asset sale.

     

     

    The possibilities for its use after that can be decided later, but we could either plant tatties or plant tatties or mibbie plant tatties even!!!!

     

     

    ——

     

     

    Lol

     

    Market them as Copeland Greens

     

     

    HH

     

     

    M

  18. greenjedi

     

     

    You jest but I wouldn’t doubt that a concerted effort by Celtic fans worldwide could raise enough to buy that big hoose.

     

     

    What to do with it though – apart from growing tatties? :-)

  19. If HMRC will reject CVA, which is likely, and puts BDO in as liquidators is that not it? Game over?

     

    This idea that Green gets to buy everything, including Ibrox, for a few million would become impossible. BDO would seek highest value for all assets, no?

     

    Are the terms of the CVA, therefore, not wrong as they lay out what price Green gets everything for if the CVA is turned down.

  20. DiCanioWasADream on 8 June, 2012 at 08:51 said:

     

    Setanta Australia contact number

     

    1300738268

     

     

    Cheers but impossible to get throu on it.. Been trying 2days. Over 30mins each time on hold.

  21. headtheball

     

     

    Well we could always just market it as a stand alone concert venue.

  22. derry celt on 8 June, 2012 at 08:52 said:

     

    Vmhan the bowery bar is still there its just off the foyle rd. DC

     

     

    Used to have bands on a Sunday , does it still have them ? Never ever made it thou..Waterloo street was as far as the Sunday session went

  23. DeniaBhoy on 8 June, 2012 at 08:50 said:

     

     

    I think it’s quite important to remember that the document from D&P is a proposal, rather than an actual CVA (I’m certain it’s another time wasting exercise from them) and I think the idea is that parts of it can be agreed or disagreed.

     

     

    I would expect the part relating to Green getting the assests for £5.5M to be rejected by most (if not all). The only reason I can think of it even being included was as a scare tactic to try and push through the CVA. Otherwise it seems wholly pointless.

  24. macjay1 for Neil Lennon on

    proudbhoy

     

    Just after 9am

     

    Call them in N.I. or R.O.I.

     

    They`ll love it.

     

    If answer machine,give them your number in Oz.

     

     

    ROI: 0818 271 400

     

     

    NI: * 0871 277 0393

  25. murdochbhoy on 8 June, 2012 at 07:46 said:

     

     

    they will need to get out of their group first – not convinced by them at all.

  26. A brief look ahead:

     

     

    What did Sally McCoist say when he saw CW drop his coffee in the Ibrox corridor?

     

     

     

     

     

    “Clean up on aisle 3.”

  27. Allgreen tthinks SPL are at it on

    A high profile administration like the Huns shows just how poor the law i in relation to tax avoidance.

     

    If a company is liquidated there should be comeback as a newco. That should be the end, all assets sold for the highest price for the creditors. If you run your business into the ground abd set a newco up you should still be liable for all debt.

     

     

    I don’t know much about administration but an accountant I know told me getting involved in insolvency events i a good money maker for firms. He knows of a number of cases where the administrators were paid more than the total amount paid out to genuine creditors.

     

    The govt should regulate this area.

     

     

    Does anyone know if the SPL will make any decision till the FTT result is known? By this time they will be gone and the SPL findings will be irrelevant.

     

    I think the time is coming close for Celtic or other clubs to ask the SPL and SFA what is going on. A vote of no confidence on Doncaster and Ogilvie should be on the horizon.