Hinchinbrook LNP candidate linked to company that underpaid staff by $1.7m
It’s been revealed the LNP candidate for Hinchinbrook sat on the board of a disability provider when systematic payroll errors began that would eventually cost workers $1.7m in wages.
The LNP’s candidate for Hinchinbrook was a director and on the board of a Townsville disability provider when systemic payroll failure cost workers around $1.7m.
It can be revealed that Wayde Chiesa was a director and board member of the Cootharinga Society, an NDIS service provider supporting children and adults with disabilities, from August 2014 until October 2017.
In April 2023, it was discovered that the Townsville-based provider, which employs over 500 staff, had uncovered a $1.7m underpayment for the period from 1 July 2015 to 30 October 2022.
The issue was due to problems with incorrect applications of equal remuneration orders, inconsistent recognition of qualifications and casual loading not always being applied correctly.
The bungle began just 11 months into Mr Chiesa’s board tenure.
During Mr Chiesa’s time on the board, Cootharinga’s 2016 annual report — which features a photo of the LNP candidate — outlined the board’s duties.
The report stated the board was “ … responsible for setting the strategic direction for Cootharinga, approving budgets, monitoring, and auditing Cootharinga’s affairs, on behalf of Cootharinga members by whom the Directors are elected and to whom they are accountable.”
It is understood Mr Chiesa held a volunteer, unpaid position and was not a financial accountant for the charity.
An LNP spokesman labelled the link “tenuous”.
“To attack a charity volunteer over a historic software issue is a tenuous and desperate attempt by Labor to prop up Labor’s Katter Candidate,” the spokesman said.
The payroll error was first reported by the Townsville Bulletin in April 2023.
This is the second time Mr Chiesa’s business history has been laid bare amid the election campaign.
In October, it was revealed Mr Chiesa was the chief financial officer of a company that Premier David Crisafulli ran before it became insolvent.
The LNP said there was no wrongdoing found.
In response to earlier reports Cootharinga chief executive Matt Kinnane said they deeply regretted the errors.
“Our employees are the backbone of our organisation,” Mr Kinnane said.
“We always seek to pay our employees correctly, and we would never intentionally underpay anyone.
“We have made a number of changes to ensure mistakes like these don’t happen again in the future.”
Cootharinga commenced back payments to all current employees on April 6, 2023, and noted it would not seek to recover instances where overpayments had occurred.
Mr Chiesa has also previously worked in other roles including as chief executive officer of Regional Development Australia Townsville and North West Queensland, director of regional development and investment at Townsville Enterprise and senior roles at Townsville City Council and BHP among others – as well as being a rugby league radio caller.
The saga comes after Deputy opposition leader Cameron Dick has launched an attack on Mr Chiesa and Premier David Crisafulli last month.
His comments came in the wake of a story published by The Australian which revealed that Mr Chiesa was the chief financial officer in a controversial training company that collapsed after allegedly trading while insolvent.
The masthead reported that court documents show Mr Chiesa was hired by Mr Crisafulli as chief financial officer, for Southern Edge Training back in January 2016.
The firm then collapsed a few months later, with Mr Crisafulli quitting the firm in April 2016 and agreeing to pay $200,000 in compensation for “alleged insolvent trading.”
The Premier has denied any wrongdoing and no findings or charges have been made in relation to the claims – with Mr Chiesa saying in October that “as someone who was there at the time, I can categorically tell you David met all his obligations which reports have also said.”
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Originally published as Hinchinbrook LNP candidate linked to company that underpaid staff by $1.7m
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