Former RACQ executive sues insurance giant, CEO for unfair dismissal

A former executive with the RACQ says he was fired because his bosses thought he was about to blow the whistle on misconduct after raising concerns of mismanagement and “dysfunctional” processes within the insurance giant.

A former executive with RACQ says he was fired because his bosses thought he was about to blow the whistle on misconduct after raising concerns of mismanagement and “dysfunctional” processes within the insurance giant.

Former Chief Risk Officer Mark Baxter said he was fired within five months of being headhunted by RACQ to assess the competency of its risk management, in documents filed with the Federal Court.

He claimed he faced “undue hostility” as he exposed what he saw as dysfunctional processes within the insurer’s claims processes and some managers not fulfilling their obligations.

RACQ chief executive David Carter told The Courier-Mail the company “vigorously denies” the allegations and would defend the claim.

Mr Baxter moved from Sydney to Brisbane in October to take the role because he said he wanted to help RACQ to give the best service to its customers.

RACQ chief executive David Carter said he “vigorously denies” the allegations against RACQ. Photo: Stuart McEvoy/ File

“I thought it was a great membership-based organisation,” Mr Baxter said.

During a series of disclosures made to his colleagues from November to February, the chief risk officer highlighted various misconduct he perceived within the company, according to his statement of claim. He claims he met with the board of directors in February and told them that RACQ’s insurance claims process was dysfunctional, those engaged as “Responsible Managers” were not attending to their duties, and material relevant to attestations in RACQ were not being kept.

“ … the applicant was not supported by the Board in his role, but rather confronted with undue hostility,” his statement of claim said.

Mr Baxter also claimed he met with CEO David Carter and informed him that RACQ had a “complete disregard” for its compliance obligations, and he may be required to notify the Australian Prudential Regulation Authority.

Within three weeks of those meetings, Mr Baxter was fired.

He alleges in his statement of claim Mr Carter told Mr Baxter on March 2 that he wasn’t fitting in and there was “a lot of discord” as a result of his complaints and inquiries.

Mr Carter told The Courier-Mail that Mr Baxter left RACQ for reasons unrelated to assertions in his claim.

“RACQ prides itself on being a fair employer, operates transparently with employees and regulators and acts to ensure a safe and supportive working environment is maintained,” Mr carter said.

“RACQ vigorously denies Mr Baxter’s allegations in full and we look forward to the opportunity for this matter to be heard and determined by the court.”

Mr Baxter, who has decades of experience in risk management, had been approached by RACQ for the job and relocated with his partner to take the role.

He said he was disappointed that things didn’t work out and he had moved back to Sydney.

Former RACQ chief executive Mark Baxter. t.

He hasn’t regained employment.

“I’m focusing on my mental health,” Mr Baxter said.

Mr Baxter claimed RACQ breached the Fair Work Act because he was fired as a result of exercising his workplace right to complain or make an inquiry.

Mr Baxter further claimed that when he was fired, RACQ believed or suspected that he may have made or could make a disclosure that qualifies for whistleblower protection under the Corporations Act.

In the court documents, he claimed Mr Carter, the board of directors President Elizabeth Jameson, and Vice President Leona Murphy were involved in the contravention of the Acts.

He has sought that they, alongside RACQ, declare their involvement in breaches.

Mr Baxter is pursuing compensation for loss, damage or injury he suffered, the amount of which has not been outlined.

He has also asked for an order that RACQ issue an apology for alleged detriment caused.

Mr Baxter despite his short stint with the company, he had grown to care a lot about many of his colleagues.

Originally published as Former RACQ executive sues insurance giant, CEO for unfair dismissal