A former NSW RSL president accused of fraud was on the "gravy train" when he used his corporate credit card to pay phone and hotel bills for his family, a court has heard.
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Donald Edward John Rowe, 71, faced Downing Centre Local Court on Thursday, charged with two counts of dishonestly obtaining financial advantage.
Rowe has pleaded not guilty, arguing there was no deception because the RSL approved the expenses.
He was charged in January 2019 after allegedly using his credit card to pay phone bills totalling $9063 for his wife, two sons and daughter from 2012 to 2014.
Rowe is also accused of paying for a $363 three-night stay in a Sydney hotel room for his daughter over the Anzac Day long weekend in 2010.
Police prosecutor Karlo Haralovic told magistrate Jennifer Atkinson that the card was restricted to official duties and the RSL had failed to scrutinise his expenses.
"The abuse, it all goes to show there was a long history of. It was a culture of ineptness also on behalf of the RSL that they didn't raise it earlier... it slid under the carpet," Mr Haralovic said.
"He was confronted by other people in the organisation. Shortly after he was confronted about the credit card payments in 2015 he then hands in his resignation."
Mr Haralovic told the court that after Rowe resigned he paid back $2400 relating to the phone bills which the prosecutor said "demonstrated a consciousness of guilt".
"He had knowledge of what the card was to be used for. He clearly disregarded that because there was a culture that this went on unabated and on and on and on," Mr Haralovic said.
"He continued on this, what we call a gravy train, and this went on until he resigned."
But defence barrister April Francis argued the prosecution had failed to prove there was deception because at no point had the RSL's honorary treasurer or financial audit and risk management committee not approved Rowe's expenses.
"There's not a shred of evidence presented that those persons responsible for approving expenses disapproved those expenses," Ms Francis said.
"There was no false statement."
Ms Atkinson has reserved her decision for a later date.
Australian Associated Press