The money was paid back.
I think they're saying they were let down by Williams pleading for the loan to begin with.
Not bringing the issue to the attention of the board seems to be the major issue here. I doubt anyone within the NSWRU is authorised to make loans to employees.
If the article is correct it seems to say that Williams didn't pay the money back - which is why they were let down. Farr-Jones paid the money back.
And I'd add, that even the board can't authorise the use of government money for a private purpose. In fact, as you say, I'd be surprised if they could legally loan any NSWRU funds to anyone.
For Farr-Jones to say:
"Bruce was confident he could ... organise the loan to be refinanced and the debt to be repaid. Plus, Jim gave him assurances. Effectively I was comfortable with that and I was comfortable on the basis that I would guarantee the loan. There is no written guarantee but it was always my word. I was chairman for four years, I've put thousands of hours into it for no compensation.
"Technically, you probably should have sought consent of the board but I made that decision [not to] given the circumstances."
is just mind-boggling. No documentation, no nothing, just a wink and a nod. He thinks it's all ok - just a technicality in not asking. Much like one of Marto's "technical infringements".
I've been on plenty of committees over the years and put in plenty of hours without monetary compensation, but I never thought that this entitled me to loan club money to people from club funds. I'm surprised that anyone thinks that this is ok.