The chief executive of one of Mandurah's biggest sporting clubs has taken a leave of absence from his role.
Mandurah Basketball Association released a statement advising members that chief executive Lennon Smartt had temporarily stepped away from the role.
"This precautionary and difficult decision has been made by the Board as a result of the unprecedented level of misinformation circulating in the media as well as the board's duty of care towards, and concern for, Mr Smartt's mental health and wellbeing," the statement reads.
The association released a statement on Wednesday in response to an initial report on Mr Lennon, stating its 2021/22 financial year reports show an operating loss before depreciation of $187,425; this time last year the association's documents show it held a net profit of about $144,000, which included about $60,000 in COVID-related subsidies.
However, the association defended its position and said a financial loss had been factored in as it sought to 'strategically' spend on key areas, such as hiring Mr Lennon and other staff.
"At the 2021 AGM and in the 2021 President's report it was outlined that 2022 would be a year of strategic investment to best service our members and to harness the increasing popularity of the sport of basketball," the statement read.
"Whilst the 2021/22 June to July Financial Year reports will show an operating loss before depreciation of $187,425 this is a snapshot in time which does not give a true reflection of the Association's operations."
The association is hosting its annual general meeting on October 26.