CRONULLA chairman Damian Keogh has been forced to stand down from his role at the Sharks.

The Daily Telegraph understands Keogh handed in his resignation this morning over an incident on Friday night.

Police have charged Keogh for possessing a prohibited drug after he was found with a bag of white powder at a Woolloomooloo venue last night.

In a horror 48 hours for the NRL, New Zealand players Jesse Bromwich and Kevin Proctor are being investigated for allegedly purchased cocaine following Friday’s Test and Rooster Shaun Kenny-Dowell was also allegedly caught in possession of the drug on at the Ivy nightclub in Sydney on Thursday.

media_camera Sharks Chairman Damian Keogh has resigned from his role after being being charged with police for possessing a prohibited substance. Picture: Brett Costello

Keogh was searched by police at the Bourke St licensed premises about 7.50pm when officers found a small plastic resealable bag of a substance believed to be cocaine.

He was charged with possessing a prohibited drug and issued with a future court attendance notice to appear at Downing Centre Local Court in June.

The Sharks issued a statement confirming Keogh had stepped aside in his role to allow him to address the allegations, “given the challenging personal nature of this matter, Damian is not currently available for comment.”

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Sharks CEO Lyall Gorman said Keogh was distressed by the incident.

“He expressed great remorse to me that he had let me down personally,” Gorman told reporters.

Gorman said he had spoken to Keogh several times on Saturday.

“He’s very distressed about potential outcomes and the impact on the game, the club and his family,” Gorman said.

“There’s a whole lot of challenging things to be worked on through here.

“Clearly these things aren’t great for the club or the game but let’s be clear these are allegations.”

NRL CEO Todd Greenberg confirmed knowledge of the incident.

“We are aware of an incident which involves the Sharks Chairman. We are awaiting further details from the Sharks about what has occurred,” Greenberg said.

On Saturday afternoon the NRL issued a statement and the NRL Integrity Unit would be investigating the matter.

“The game has taken steps over many years to highlight the risks associated with the use of illicit drugs,” Greenberg said in the statement.

“We will continue that work but ultimately individuals are accountable for their own choices, and the League’s capacity to eliminate the use of illicit drugs by its participants faces similar challenges to that faced by society.”

When contacted this morning, Keogh declined to comment for legal reasons.

Keogh, a former Australian basketball star who made three Olympic Games teams, took over at the Sharks during the supplements scandal in 2013. He was voted onto the board after the infamous ASADA press conference and helped rebuild the struggling club from wooden spooners to premiership winners last season.