THE NRMA has handed over more than $57,000 to help president Alan Evans settle a private legal dispute.
The payment was disclosed at the NRMA annual general meeting
on Wednesday.
It followed Mr Evans having been found to have defamed former director Richard Talbot.
The defamation was contained in election material distributed by MrEvans's faction of directors during the 2005 board elections.
At the time a spokesman for the motoring organisation denied any funding of Mr Evans's case was taking place.
Yesterday Mr Talbot said he became aware that the NRMA board had voted to contribute money to the settlement only after the release of the latest financial statements.
He said the board had voted tomake a contribution to the settlement by funnelling the money through Mr Evans's lawyers before the payment was made to him.
"The action did not involve the NRMA in any way," Mr Talbot said. "I cannot understand why they paid almost all of the final settlement as well as my costs."
An NRMA spokesman described the payment as a contribution to the final settlement cost.
"The NRMA Board, having taken legal advice and, with NRMA president Alan Evans not present atthe board meeting, formed the view that NRMA faced the risk of significant costs if the case brought by Mr Talbot against Mr Evans proceeded," he said. "Mr Talbot was seeking disclosure of a very significant quantity of documents held by NRMA through his claim against Mr Evans, not just those relating to his case against Mr Evans.
"At no time did NRMA president Alan Evans ask the company to pay settlement costs for this case. Nor did the NRMA pay Mr Evans's legal costs."
Former federal Labor minister Gary Punch was the only director who failed to keep his position in this year's election. Mr Evans, former Olympian Dawn Fraser, former Australian rugby league player Geoff Toovey, former National Party state minister Wendy Machin, car dealer Michael Tynan, Coral Taylor, Kyle Loades and Graham Blight were returned. The new director-elect is David Bentham.
hgilmore@fairfaxmedia.com.au