Former All Black gets interest-free loan from club

Frank Bunce. Photo / Supplied

Eyebrows have been raised over an interest-free loan advanced by a South Auckland rugby club to an ex-All Black.

Last year Manukau Rovers, who play in the Auckland competition, loaned Frank Bunce $30,000 to help him to buy a house.

The loan is listed as an asset in their accounts, filed for the financial year ending August 31, 2010.

The loan agreement was signed on April 15 and is for three years.

A note in the accounts states that "the loan will not bear interest except in the event of default by the borrower".

Yesterday Bunce said the loan was a "private matter" and that he had paid most of it back.

"It was for my house and needed to be done then and there. It was with a club that has been a part of my whole life."

Manukau Rovers chairman David Stein said "it was just a loan we gave him and he's paying it back to the best of my knowledge" and referred all comment to the treasurer.

However, the chief executive of Counties Manukau Sport, Russell Preston, said the loan was "not a good look".

Counties Manukau Sport gave a $63,450 grant to Manukau Rovers to run a school holiday programme, but the most significant assistance it gives is through its Clubsmart initiative, which teaches clubs good governance and fiscal responsibility.

"To be honest, I have raised it [the loan] with them. We're trying to support them financially and we're running Clubsmart with them, which is literally trying to make them a smart club. I've asked them whether this is what a 'smart' club would do?

"I'm not happy about seeing this transaction because it indicates we're wasting our time."

Preston gave Manukau credit for disclosure, saying that in the past this was the sort of deal that clubs would brush under the carpet.

He also understood they had a sentimental attachment to Bunce, their most distinguished former player.

The Auckland Rugby Union's club rugby manager, Matt McHardy, also expressed surprise at the loan.

Manukau last year received a grant of slightly more than $36,000 from the union, a figure based on the club's registered players from the previous year.

"Each club signs what we call the Amateur Support Agreement and makes each club accountable to spend the grants on amateur rugby," McHardy said.

"The club chairmen and union chairman signs that."

McHardy said the clubs were required to file quarterly returns outlining their income and their spending.

There was an expectation that club finances should be primarily used for the promotion and running of amateur rugby.

He was unaware of the loan to Bunce and described it as out of the ordinary.

"I'm surprised by that, and they certainly didn't run it by us," McHardy said. "But clubs also get money from other avenues and we can't control where that money is spent."