Banks and liquidator to scrutinize Forum Group transactions with Sydney Olympic
Eric Constantinidis is the sole director and shareholder of Our Kloud. He was described in court earlier in July as Mr Papas’ cousin. There is no indication that Mr. Constantinidis was involved in or knew of the alleged wrongdoing of Mr. Papas and the Forum Group.
McGrathNicol took over responsibility for the Forum Group entity on July 22, according to documents filed with ASIC. Westpac made a successful attempt to replace the directors appointed by Mr Papas, Mackay Goodwin, at a creditors’ meeting last Wednesday.
It is likely that at this point any outstanding liabilities owed to Forum Group, including that of Sydney Olympic, constitute a debt to the liquidator. An investigation is still ongoing as to whether the money that went from Forum Group to Sydney Olympic FC was part of the alleged fraud of nearly $ 400 million. Investigations by Westpac, the liquidators and NAB, Forum Group’s bank, are continuing.
“SOFC is currently reviewing all trade agreements and until this review is completed, they will not be able to make any disclosures,” said a spokesperson for the club. Financial analysis.
“SOFC’s financial records are confidential and comply with the club’s obligations under NSW Football regulations.”
Sydney Olympic Games, in response to the Financial analysisThe revelations last week told his Facebook followers that the club is in good financial health, that its records comply with NSW Football regulations and that it will keep members and stakeholders informed.
Supporters’ responses included calls for an extraordinary general assembly to explain the club’s finances and figures reported by the Financial analysis.
Independent forensic experts have examined the accounts and transactions of Forum Finance and the Forum Group of Companies at large, including Forum Group, for $ 400 million allegedly fraudulently obtained from Westpac, French bank Societe Generale and of Sumitomo Mitsui Banking Corporation of Japan.
The $ 2.18 million owed to Forum Group by Sydney Olympic is not sponsorship money, which would be revenue. Instead, the $ 2.18 million is classified as a related party payable, a debt the club owes to the company.
Sponsorship and advertising revenue in the most recent reported accounts, 2018, was $ 229,821, while donations were $ 4,085.
In addition to money owed to the Forum Group, the club owe Titan Cranes $ 1.37 million, the business operated by Sydney’s last Olympic director, Damon Hanlin.
There is no indication that Mr. Hanlin had any involvement or knowledge of Mr. Papas’ business dealings and the Forum Group.
Mr Papas became a director of Sydney Olympic on February 16, 2016. He resigned as club president on July 2 after the allegations were made public by Westpac.
After Mr Papas became president of the Sydney Olympics, the club’s finances appear to have headed south.
It had sales of $ 754,759 in fiscal 2015, but the following year it fell to $ 621,221. In 2017, it fell to $ 532,128 and in the latest accounts published in 2018, it fell again to $ 473,122.
Meanwhile, expenses and debts have increased and losses have grown larger. Sydney Olympic reported a loss of $ 171,766 in fiscal 2015, a loss of $ 262,874 in fiscal 2016, a loss of $ 809,098 in fiscal 2017 and a loss of 976 $ 971 in fiscal 2018.
The liability has increased each year from $ 217,657 in fiscal 2015 to $ 536,468 in fiscal 2016, to $ 1.3 million in fiscal 2017 and to 2.3 million. million dollars in fiscal 2018.
At the same time, a cost recognized in competition expenses went from $ 429,000 in fiscal 2015 to $ 519,175 in fiscal 2016, to $ 681,450 in fiscal 2017 and finally to $ 948,777 in fiscal 2018. .