The NSW premier says anyone who has misused RSL funds should face the full force of the law.
Former NSW RSL boss Don Rowe has admitted to using the charity's cash to pay for his mortgage, family phone bills, flights, meals and accommodation at a Sydney hotel.
His startling admissions at a public inquiry on Monday came after an auditor found he used his corporate credit card to pay $38,000 in phone bills and withdraw $200,000 in cash during his 11 years as president.
"Our veterans and their families have made a huge contribution to our state and to our country and they deserve our respect and it is a shame that individuals are putting that into disrepute and I hope the law will come down on them," Gladys Berejiklian's told reporters in Sydney on Tuesday.
"If there are individuals who have not done the right thing by the RSL, that's got to be found out and that's got to be addressed because we want full confidence restored in that organisation."
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The misappropriation of funds is being investigated by fraud detectives, who are carrying out forensic accounting analysis of a large cache of financial documents.
The inquiry also heard during Mr Rowe's presidency, he was a director of NSW RSL's aged care arm LifeCare.
In 2007 its directors - including Mr Rowe - voted in favour of paying themselves consultancy fees.
The fees started at $18,000 per year and by June 2016, all directors were receiving between $34,303 and $57,172 per year.
The increases were approved by the directors and at the time Mr Rowe didn't see a problem with it but he now admits it was a failure on his behalf.
The public inquiry, set up by the NSW government under the Charitable Fundraising Act, continues on Wednesday before Patricia Bergin SC.
