From the Dover Express, 25 April, 2002
Exposed social club financial "shambles"
HOW FORMER MAYOR COWAN RAN CLUB
EXCLUSIVE by Simon Finlay
THE true nature of the financial mess that Gordon Cowan has left
behind at the Post Office social club can be revealed for the first time
by the Dover Express.
Senior Labour Party member Mr Cowan 'resigned' recently as treasurer
after running the club for seven years - but only after his style, of
financial management became clear.
The club's committee was kept in the dark about debts, thinking they
amounted to a few thousand when the figure was closer to £20,000, At a
recent meeting, Mr Cowan was forced to admit that a £5,000 loan from a
brewery to payoff a supplier had been flung at other creditors.
This emerged as the pattern of how he organised the club's finances,
but still took a modest wage himself from the takings.
Mr Cowan even dipped into a children's Christmas toy fund to pay for
'pressing debts and to meet more urgent demands.'
A well-placed source said: "The committee is wondering why he allowed
the Shambles to carry on. The members still don't feel like they've got
to the bottom of it."
Now the six committee members are worried that individual members may
be held personally liable for debt-related legal action and costs.
Consignia, which runs the Post Office, told the Express some weeks ago
that until accounts for this year are in that it would be 'unfair'
to comment. It is highly unlikely that senior management are aware how
the club has been run.
At a committee meeting held on February 15 at Charlton Green, Mr
Cowan
was grilled in front of his manager John Pearce, Graham Lackenby,
Graham White, George Smissen and Bill McCready.
Minutes of the meeting leaked to the Express clearly reveal Mr Cowan on
the rack as his fellow members demanded answers about the club's
parlous financial state.
Despite being treasurer, Mr Cowan was only able to offer the members
what he called a, 'snapshot' when asked about the financial position of
the social club.
Figures produced by Mr Cowan himself show that, as the club's financial
controller, he was able to reduce - on paper - debts in February of,
almost £18,000 to £15,500 in April. Insiders say that his calculations
were 'cock-eyed' as there were rolling bills not accounted for.
Former Dover Athletic Football Club chairman Mr Cowan was asked by the
committee why a £5,000 loan taken out with Carlsberg to payoff an old
debt with the brewing giant Courage had not been used for that purpose.
The minutes, record Mr Cowan reasoned that 'other factors' had to be
taken into account and that the cash was used to 'stave off' demands
from several sources.
Mr White asked Mr Cowan - who recently resigned from Town
Centre Management's, chairmanship before he was booted out - why he had
not told the committee members Carlsberg was not being repaid. The
minutes read: "Mr Cowan stated he had not because he felt that members
must have noticed Carlsberg were being avoided."
Mr Lackenby told the former district councillor and ex-town mayor that
if the committee members had not been informed they 'naturally assumed'
there were no
problems.
In the case of Courage, according to the minuted record, the members
assumed the brewery had been paid. Mr Smissen referred to cutbacks
following a previous meeting which should have helped the financial
state of the club while Mr White observed that once the Courage bill
paid things would be back to normal. The committee demanded to know why
Mr Cowan had opened the secretary's letters.
Mr Cowan said he only opened
them if they were clearly of a business nature. The former school
governor was then asked why he had dipped into money from a children's
Christmas toy fund for other than the purpose for which it was intended.
Mr Cowan replied that the money went straight into the bank and was
'used to pay and to meet more urgent demands.'
He admitted that he 'got threatening letters' because there was a
long delay in paying the bills.
Consignia accepts no blame
ALTHOUGH the facilities enjoyed at the social club are largely owned
by Consignia, those running it are liable for debts and legal actions.
According to a Consignia document outlining clubs' responsibilities,
the company accepts no liability for 'debt or fines' by clubs or their
officers.
It reads: "Officers of clubs should therefore understand that they
may be personally liable for any shortfall in club funds caused by
negligence or mismanagement or by any other means.
"Club officers may also be personally liable if the club defaults on
the repayment of any loan which they have authorised on behalf of the
club.
"It must be emphasised that the competent administration of club
funds is the responsibility of the officers of that club and not of
Consignia plc."
Mr Cowan accused his fellow members of being 'back-stabbers' for
calling him to account over his running of the club.
He also made it clear that they would have to share the
responsibilities of the debts incurred.
At February's meeting, operations manager John Pearce suggested that
the committee would run the finances in future with 'more control.'
Mr Cowan has been replaced by Post Office veteran Les Wright.
'Accounts are approved'
GORDON Cowan no longer returns our calls and repeated efforts to speak
to him have failed, even as recently as yesterday morning.
Last week, he told a newspaper:
"The club is in a difficult financial position because there isn't the
support for it.
"Fifteen years ago, the club had a membership of 1,500 and a waiting
list. Seven years ago, when I became treasurer and a new committee took
oven it was in a worse situation than it is now. We got it back on its
feet.
"There are currently about 350 full members - Royal Mail people who
pay a weekly subscription - and there are only about 16 associate
members who pay an annual fee. They are peopIe outside the Royal Mail
who are invited to join by other members.
"The club can't go on as it is for much longer. It really needs
more private functions to bring in money."
"About 18 months to two years ago, I halved the amount I was getting,
and two months ago I stopped taking
any pay at all."
''The accounts have been audited annually, and sent to the Royal Mail
for their scrutiny every year. They have always been approved."
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