Mr Haines and the remaining members of the state council - some have already resigned - have previously promised to stand aside pending investigations into the financial scandals that have dogged the NSW branch for eight months.

The state branch said in a March statement that during an inquiry into possible credit card abuse and unexplained "consulting fees" paid to some councillors, the council had "stood aside and delegated its oversight authority of RSL NSW to a Caretaker Management Committee".

But correspondence seen by Fairfax Media makes it clear that Mr Haines and other councillors are still running the organisation.

An email sent by councillor Bob Metcalfe to some RSL sub-branches warns that the national RSL is trying to take over NSW. "Be very careful what you support. We are your elected councillors and retain control even though we have stood down," it states.

Mr Haines represented the RSL in Anzac Day services despite a request by the NSW government that he not do so. At next week's state congress, where Mr Haines and some other councillors are seeking re-election, he will host the annual dinner.

But after the NSW government announced it would hold its own inquiry into the RSL financial allegations headed by former Supreme Court judge Patricia Bergin, Mr Dick demanded that Mr Haines and the other councillors cease all duties immediately.

"This matter has now reached diabolical proportions for our members nationally and will have lasting ramifications on the long term reputation of [the] League," Mr Dick wrote in the email sent on Monday morning and seen by Fairfax Media.

"I have requested on numerous occasions that you and your council members vacate office and stand down from your positions for the good of the league.

"I insist that you do this today. That you continue to remain in office is now totally unacceptable and I will exercise all my powers as the national president to ensure the League is protected throughout this inquiry."

Mr Dick vowed that if Mr Haines and other councillors did not stand down, the national league would reinstate charges of bringing the league into disrepute.

The national league had previously issued those charges but withdrew them after Mr Haines and other councillors agreed to stand aside in February. A caretaker team of three RSL members was appointed to oversee the state branch's affairs, but since then the NSW branch has clearly interpreted that as the caretaker team merely exercising an oversight role.

"You must contact me immediately," Mr Dick concluded in the email.

Mr Haines' assistant replied that Mr Haines was having problems with his computer and he would "attend to your email when he comes in", indicating he was still working out of Anzac House headquarters despite having agreed to stand aside.

RSL NSW later said in a statement posted on its website that Mr Dick's letter "may constitute harassment".

"These statements are prejudicial to any charges or investigations that may or may not be instigated by the national body," it said.

The scandal relates to a range of financial activities, including credit card cash withdrawals by former NSW president Don Rowe of more than $200,000 and payments of tens of thousands of dollars a year described as "consulting fees" paid to state councillors by the RSL's aged-care arm, RSL Lifecare.

Eight past and present state councillors received the consulting fees. Mr Haines was not among them, but he has been a NSW state councillor for 20 years and was acting state president when Mr Rowe was allowed to quietly resign citing ill health after his questionable credit card use was uncovered.

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