Camp Gallipoli: Federal government orders probe into Anzac charity

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This was published 7 years ago

Camp Gallipoli: Federal government orders probe into Anzac charity

By Chris Vedelago and Cameron Houston
Updated

An Anzac charity that received millions of dollars from government grants and ticketed events is now being investigated over fears it did not pass on the money raised to veterans associations.

The federal government has ordered an investigation into the Camp Gallipoli Foundation and has stripped it of its permit to use the protected word "Anzac" just days before the foundation stages a series of educational and fundraising events around the country on Anzac Day.

Camp Gallipoli at Melbourne Showgrounds last year.

Camp Gallipoli at Melbourne Showgrounds last year.Credit: Simon Schluter

The move by the Department of Veterans Affairs comes after Fairfax Media revealed the foundation's chief executive, Chris Fox, may have personally profited from the foundation by charging "management fees" worth up to $1.5 million a year through commercial companies owned by his family and an associate.

The Camp Gallipoli Foundation, which last year received $2.5 million federal grant, has been unwilling to substantiate its claims that it donated money raised on behalf of veterans' charities despite collecting millions of dollars in ticketing revenue, donations and sponsorships from corporate Australia.

Camp Gallipoli in Sydney last year.

Camp Gallipoli in Sydney last year.Credit: Christopher Pearce

The national leadership of the RSL and Legacy report they have received no financial donations from Camp Gallipoli.

The revelations raise questions about how taxpayers funds were spent on the 2015 Anzac commemorations and the regulation of groups that fund raise on behalf of charities.

Minister for Veterans' Affairs Dan Tehan said it would be disturbing if any company or individual gained a commercial advantage through the use of the word Anzac.

"As a consequence I have asked the Department of Veterans' Affairs to conduct a review into the funding arrangements for Camp Gallipoli and provide advice on the charitable donations they have committed to make," he said.

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"Anzac Day and the word 'Anzac' both hold a special place in the hearts of all Australians. My department has now written to Camp Gallipoli advising them their permit to use the word 'Anzac' has been revoked."

The government did not comment on whether it was aware Mr Fox was a bankrupt as recently as 2013 when it issued the grant and official permission to use "Anzac" for the foundation's activities.

The Camp Gallipoli Foundation ran nationwide events on the eve of the Anzac centenary in 2015, hosting an estimated 40,000 people who paid up to $120 each to camp out "just like the Diggers did".

Events are also scheduled for most capital cities this Anzac Day.

The Department of Veterans' Affairs – through the Anzac Centenary Fund – backed the original program with a one-off grant of $2.5 million.

Another $1 million was contributed by corporate partners such as Target and Woolworths through merchandising deals and sponsorship arrangements.

Promotional materials said any surplus generated by the events – and its membership-based "Camp Gallipoli Club" – would be donated to veterans' groups, Legacy and the RSL.

In the days before the 2015 centenary events, Mr Fox announced Camp Gallipoli was expecting to generate a "surplus" of $900,000. Fairfax Media understands that severe weather at the Sydney event did hurt the finances of the foundation but it is unknown to what extent.

A dispute has erupted between Camp Gallipoli and the veterans' charities about the funds.

"Legacy has not received any money from Camp Gallipoli," national chairman Tony Ralph said.

RSL national chief Samantha Jackman said the organisation had also not received any donation after the 2015 events.

Both veterans' groups say they have no official relationship with Camp Gallipoli for 2016.

But the foundation's deputy chair Graham Ingerson maintains the foundation has "significantly supported" the RSL and Legacy. "The Foundation has invested significantly in many projects to aid and assist these charities."

Despite committing to release a list of these contributions, none was provided by the foundation.

A Fairfax Media investigation has also found that chief executive Chris Fox is apparently trying to turn the event into a commercial venture by charging percentage-based "management fees" through companies owned by his family and an associate.

The companies are entitled to receive fees equivalent to up to 20 per cent of the fixed cost of staging the events.

Mr Fox, who is also employed on a $150,000 annual salary as the CEO, has refused to disclose how much money the for-profit companies have actually made via Camp Gallipoli.

While eventually acknowledging they qualified for a fee worth up to $1.5 million in 2015, Mr Fox said no management fees have been charged because the Camp Gallipoli events did not generate enough revenue.

He later said his company did receive a payment of $100,000 to cover staff costs, as well as received "loans" from the foundation and a $215,000 gift from an unnamed benefactor to cover expenses in lieu of the fee payments.

Mr Fox, who said he also had not received a salary in six months, eventually claimed he "did not know" what had been received by the companies in fees.

"We're living on scraps, metaphorically. We've run it on an oily rag. No one is trying to profit from it – we're just honestly trying to do something good," he said.

"We've just put together something that Australia loved. If some Australian wants to do it better than me, they are more than welcome to do it."

The management agreements were approved by the board, which includes the RSL's South Australian state president Tim Hanna and former politicians Alan Ferguson and Graham Ingerson.

The foundation has refused to release Camp Gallipoli's financial statements or clarify the exact nature of the financial arrangements between the foundation and the for-profit companies despite providing an undertaking to do so to Fairfax Media.

"On behalf of the Camp Gallipoli Foundation, I refute any suggestion made from [the journalists] that any monies, especially funds provided through the ANZAC Centenary Grant in 2015, were used for purposes other than intended," deputy chair Graham Ingerson said.

"All revenues and fixed costs are transparently reported to the board on a regular basis. In addition, I would like to note the Camp Gallipoli Foundation is audited by external auditors PWC."

Camp Gallipoli says Mr Fox's bankruptcy is "historic and finalised" and "unrelated to the work of the foundation".

cvedelago@theage.com.au

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