GLNF audit « anomalies » ….for « Dummies » !!!

Published on by Winnie

By the Seriously Confused and Seriously Pissed Off Black Penguin


ephesse has already sent us numerous “triumphant” messages claiming the ALL the audits of the GLNF management had revealed no problem…the everything was quite clear and that the FMR badboys were on the wrong path !


But you’ve begun to understand the character : The more he claims it to be true…the warier you should be !




Let’s not talk about the “reports” that were produced, at his request, by a qualified accountant, N.GALATAUD, which revealed what we knew already, that the figure at the bottom of each column was the total of everything above it. You know, 2 + 2 = 4; the sort of calculation you need at least 8 years of tertiary accounting diplomas to perform !


Maître Legrand had requested a “limited” Audit mission for the annual accounts of the last two financial exercises to the BELLOT MULLENBACH Cabinet. This document was distributed on September 30th and, like all accountancy documents of any importance, it tended to generate an immediate lack of comprehension, even extreme “fatigue” for the average “penguin” who accidentally found himself in front of the opened pages. Such documents are more efficient than "Stilnox" !


At great expense to the management we decided to have the document “decoded” by an accountancy firm who provided us with its Analysis and Commentary. link


Firstly, the audit limits itself to the head office, plus the Provinces of PACA, Massilia, Paris Grand Arche, Lutèce and Toulouse Pyrénées, only 44% of the turnover…Don’t forget that the global annual budget of the GLNF Association is somewhere in the region of 18 million euros !!! The audit decided to overlook a mere 10 million euros !!! Oversight or deliberately looking the other way ???


The audits were carried out in part by interviews with the Grand Treasurer and Henry the Beancounter, Administrative and Financial Director of the GLNF Association…all logical so far, …BUT BELLOT MULLENBACH points out a certain ambiguity between the financial responsibilities whose respenctive extent is not clearly defined…since both are Grand National Officers (of the GLNF, distinct from the GLNF Association), named as such by ephesse and, for one of them, he is also a salaried employee of the GLNF Association. When one is aware of the feudal links within Pisan and the “salary” of Henry the Beancounter…their objective and critical detachment could be troubled !


The first element that stands out in the BELLOT MULLENBACH Report is the total lack of transparency towards the members of the Association, all eventual voters on the Annual Accounts…should the long-promised AGM ever eventuate !


At the Annual General Meetings (AGMs), the results and accounts presented to the members concern the joint accounts of head office and all the provinces together…the Budgets put forward concern only the head office. No comparison or breakdown is possible.


At the AGMs the members receive no information concerning the financial engagement and participation in their name in the SAI (real estate structures)…nor who are the other shareholders, individuals in particular, in these nebulous structures. And all this when the sums in question represent approximately 60% of the total accounts !!!


On the financial engagement side of the August 31st, 2010 accounts the vague term “OTHER RESERVES” appears for a total of…23 million euros !!!(Peanuts !) The members have never been consulted about the opportunity of these “reserves” !


Therein lies the FIRST MAJOR ANOMALY : The BELLOT Report stresses that these provisions, over and above the fact that they should be decided upon sovereignly at the AGM, should be the object of affectation into “dedicated funds” so that the projects they are destined to finance can be identified, quantified and validated by the AGM.


From there we arrive at the SECOND MAJOR ANOMALY: the “provisions” that are discreetly constituted each year…and which should be legally destined to “guarantee risks” are, in fact, AFFECTATIONS of DISGUISED RESULTS (we are talking about 2.3 to 2.4 million euros each and every year) and this has been going on for years inflating AN ENORMOUS KITTY… without recourse to the members’ AGM, normally the only ones qualified to decide the affectation of this result, upon a proposal from the Administration Board and the Treasurer !


And the THIRD MAJOR ANOMALY flows from there:

The inadequate use of the ”provisions” have the effect of artificially DIMINISHING the RESULT for the period…and serve to ARTIFICIALLY INCREASE the amount of the DUES to be called the following year in order to “balance” a “false” budget by the presentation of the preceding results.


Each year (and since when ???) we are asked to pay DUES WHICH ARE TOO HIGH (10% to 43000 members at 300 € to 400 € per member that represents a minimum of 2.5 million euros per year, without counting the interest !!! AN ENORMOUS KITTY BUILT UP BEHIND OUR BACKS AND COMING STRAIGHT OUT OF THE BANK ACCOUNT OF EACH AND EVERY MEMBER OF THE GLNF !!!






THE NEXT ANOMALY shown up by the report :

The methods for the attribution of markets and other important investments are not part of specific procedures that can be controlled by the members.


Were we consulted or even informed concerning the purchase of “Wagram” ?

In fact, in case you haven’t heard, Maître Legrand has sold it !!! Do you know the SALE PRICE AND CONDITIONS ? …NO !!! Neither do we !!! And yet it belonged to the Association and the members have a right to know !!!


We would like to have a COMPLETE REPORT ON “OPERATION WAGRAM” Purchase price, Purchase fees and taxes (paid to whom ?), Renovation costs, Local taxes, Building management fees, Net Sale Price, Sales fees, etc, etc



The BELLOT Report notes that the practices and methods give no guarantee of ANY TRANSPARENCY in the DAILY MANAGEMENT of the ASSOCIATION, particularly concerning the ventilation of the current management of expenses. The amount of administrative costs appear excessive and only an  STUDY OF THE MAJOR ACCOUNT BOOK (which, before witnesses, Maître Legrand promised to produce….but which is constantly postponed to an undefined later date) would enable the detection of eventual abusive expenditure !


Similarly the BELLOT Report notes that those who benefit from representative costs and other displacement indemnities should BE IDENTIFIED and their expenses listed in function of each mission undertaken (that seems the least one could ask !)


CONCLUSION : but unfortunately not the END

You will discover other “anomalies” in the original document….put quite simply EVERYTHING IS OPAQUE !!!

Be it the accounts , the management expenditure, the real estate participation, the Association members are denied direct control over decisions that are the AUTOCRATIS PREROGATIVE of an EX GM and his inner circle, in particular the Administration Board.



Within the limited mission given to BELLOT MULLENBACH the report concludes prudently that, with the reservations that we have just read, the presented caccounts appear reasonably sincere and reflect the reality of the social accounts and GLNF assets for 2008 / 2009 and 2009 / 2010. Besides, none of the points raised above could form the basis for a complaint of Abuse of Shareholders…insofar as the power was given regularly to the Board by the AGM (even if the precise details concerning the modifications were hidden from the members). You can’t really be too proud, Mr Stifani, of this first audit result.


Clearly, we are all responsible for having blindly approved the accounts and the budgets for so long over so many years.


But that is one more reason for no longer tolerating the perpetuation of such mismanagement !


Imagnine for just an instant, a private business, no matter what its size or nature, which ran its accounts like that…. And was controlled by the Tax Man…The tax Controller would think it was Christmas, Easter and his birthday all in one. … I can imagine the report…. The business would be closed immediately…..And that’s what could happen to the GLNF (for a whole series of reasons, all linked to the current management…. and only a few of which have been disclosed in this article). Thank you CC, thank you Big Moustache, thank you ephesse !!!


Let’s carry the comparison a trifle further : Imagine the annual meeting of shareholders who discover because of an audit that their company had been run for years under an organised opacity. THE CEO and his entire Board would be thrown out holus bolus !!!


Get ready for it. It’s likely to happen with the GLNF Association… and then with the GLNF !!!


In order to “clarify” the anomalies brought up by the audit, Maître Legrand had decided to extend the BELLOT MULLENBACH Cabinet mission to examine the justified or otherwise expenses linked to functions and the missions of those receiving the said expenses. The Cabinet (and LML in English readers) are still waiting to see the order to begin this extended mission.


If, and when, such occurs we will inform you immediately. But don’t hold your breath !!!








Comment on this post

John Sage 10/05/2011 19:24

Can it get any worse! I was at a meeting of my London Lodge (Blackfriars ) and for the first time ever I felt ashamed to be a French Freemason. I'm not alone in this. I have actually shed tears
over this. SOMETHING MUST BE DONE! The Administrator must get of the fence and do her friggin job. I am more than ever determined to see the end of the current administration. I want to be proud of
being a member of GLNF. I will never deny my membership but feel uncomfortable when in Great Queen Street.

John Sage. Worshipful Master. Duquesne 48. Province of Neustrie.

Winnie 10/06/2011 09:44

Dear Brother John Sage,

Don't be ashamed. Hold your head high and lead from the front, as the excellent WM you are of an English speaking Lodge of the GLNF. Shed your tears freely
for what François Stifani and his fawnicators (my word) have done to our GLNF that we love. The GLs throughout the world have suspended relations or recognition, not to punish the GLNF Brethren
whom they love dearly, but to isolate that band of autocratic thugs in the Pisan bunker. As a member of the UGLE you can walk into Great Queen Street anytime you like. Do so and announce proudly
that you are also WM of a GLNF Lodge. No-one is going to ask you to leave. As a member of the GLNF you can walk into Pisan anytime you like (provided you have the little blue sticker and Gorillas
Incorporated doesn't throw you to the floor). Do so, and announce that you are a member of the UGLE. Then Gorillas Incorporated will throw you to the floor on the grounds of a backdated letter
sent to the UGLE by an ex-GM using letterhead he hasn't had the right to use since last January.