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Elite Queensland private schools embroiled in scandal over alleged privacy breach

A CHURCH body in charge of four of Queensland’s most elite private schools is embroiled in a scandal over an alleged privacy breach. And, in a bizarre twist, texts have been uncovered of two of the body’s officials discussing meetings in a nude bathhouse.

The Presbyterian and Methodist Schools Association (PMSA) owns Somerville House, Brisbane Boys College, Clayfield College and Sunshine Coast Grammar School.
The Presbyterian and Methodist Schools Association (PMSA) owns Somerville House, Brisbane Boys College, Clayfield College and Sunshine Coast Grammar School.

A POWERFUL church body in charge of four of Queensland’s most elite private schools is embroiled in an explosive scandal, with accusations an official breached confidential information about some of the state’s most prominent figures, including Governor Paul De Jersey.

The Courier-Mail can reveal The Presbyterian and Methodist Schools Association (PMSA) — which owns Somerville House, Brisbane Boys College, Clayfield College and Sunshine Coast Grammar School — has been sent legal letters from Somerville House Foundation.

And, in a bizarre twist, an internal IT audit conducted by Somerville House Council has uncovered text messages between two PMSA officials in which they discuss having “covert” meetings in a nude sauna at a Korean bathhouse to catch up for what is described in the messages as “secret men’s business”.

Text messages between Inspector Robert McCall and Rick Hiley.
Text messages between Inspector Robert McCall and Rick Hiley.

Mr De Jersey along with business leaders, multi-millionaire benefactors, lawyers, doctors and charity workers were notified last month of a “serious privacy breach” involving confidential “personal identifier information”.

This included confidential details of individuals, donation amounts, addresses, director’s signatures, as well as staff contracts, salaries, and resumes.

The PMSA, run by a board of Uniting Church and Presbyterian church elders, employs up to 700 staff, with an annual business turnover of more than $80 million.

The unfolding scandal erupted in June when the download of confidential information was disclosed to Somerville House Foundation, whose 500 members include former Chief Justice De Jersey.

The Foundation ordered an audit which last week revealed the “unauthorised retrieval and removal” of more than 10,000 files in what law firm Brown Wright Stein believes is a breach of the privacy act.

former Chief Justice Paul de Jersey was among those notified last month of a “serious privacy breach” involving confidential “personal identifier information”. Picture: David Kelly
former Chief Justice Paul de Jersey was among those notified last month of a “serious privacy breach” involving confidential “personal identifier information”. Picture: David Kelly

Thousands of files from Lifeline and TAFE Queensland — who are yet to be notified of the data transfer — were also discovered.

Legal advice sent to the PMSA by law firm Brown Wright Stein suggests possible breaches of the privacy act, fiduciary duties, and corporate governance.

But the PMSA has ruled out any security risk and cleared PMSA executive manager Rick Hiley, who admitted to downloading the files, of any wrongdoing and declared the files have since been deleted. In a shock move, Somerville House principal Flo Kearney who was overseeing the investigations into the security breach sensationally resigned on Tuesday.

Mrs Kearney is the latest in a string of school principals and board members to resign after airing concerns about PMSA’s corporate governance. Uniting Church Reverend Murray Fysh, UQ Dean of Law Professor Sarah Derrington and Senior Law lecturer Dr Sarah Kelly all quit the Somerville House School Council while BBC’s headmaster Graeme McDonald and deputy headmaster Kyle Thompson depart their roles at the end of the year.

Somerville House principal Florence Kearney resigned on Tuesday. Picture: Jeff Camden
Somerville House principal Florence Kearney resigned on Tuesday. Picture: Jeff Camden

This follows an investigation conducted by Somerville House Council in June which uncovered bizarre text exchanges between Mr Hiley and Robert McCall, who was the PMSA chair but has since resigned. The SMS log shows the two men organised to discuss sensitive documents and develop a new job position in “discreet” meetings at various inner-city clubs, restaurants and a Korean bath house in Woolloongabba.

“Would you like to be radical and finally go over to the spa which is not far from your office?’’, texted Mr McCall, who is a decorated Queensland Police Inspector and church elder.

“I’m happy to go to the spa — I’m a prude when it comes to public nudity though,’’ replied Mr Hiley.

Inspector McCall, who was awarded the Australian Police Medal for distinguished service in June, resigned his position after 17 years on the PMSA in August. A senior church figure, who spoke on condition of anonymity, condemned the resignation of Mrs Kearney as “worse than an injustice”.

“The data breach has outraged some of the state’s wealthiest and most private individuals. The PMSA ... has to go,” she said.

Former BBC Foundation chair Andrew Macarthur, who resigned from the role last month, threw his support behind Mrs Kearney.

“I think it is a disgrace, it’s very frustrating the PMSA is supposed to be running this multimillion-dollar school business when it is so dysfunctional,’’ the agribusiness boss said.

Ex-Ergon Energy chair Mal Hall-Brown, a former PMSA and Clayfield College Council member, said the culture of the PMSA was highly irregular and the integrity of the four schools was paramount.

Somerville House Foundation chair Virginia Buttula last night said she had been inundated with calls from concerned parents and vowed to support the principal.

“Mrs Kearney has done nothing wrong and has acted with integrity and strength of character under very adverse conditions,’’ she said.

“I’m appalled by this security breach, the context of those text messages and the lack of inaction of the PMSA.’’

PMSA spokesman Michael Crutcher refused to comment.

The Courier-Mail also approached Mr Hiley and Mr McCall several times for comment with no response.

Original URL: https://www.couriermail.com.au/news/queensland/elite-queensland-private-schools-embroiled-in-scandal-over-alleged-privacy-breach/news-story/c12d48ca62c34ef0f74d490f7195214f