FSG’s $20 million property empire revealed after its collapse on the Gold Coast

FAILED charity FSG will not be investigated by the state government — despite sitting on a property empire worth tens of millions of dollars. SEE THE PROPERTY EMPIRE

FSG Australia’s $3 million Southport Cafe.

TAXPAYERS who forked out $60 million a year to FSG Australia are unlikely to receive much from the trainwreck charity’s $20 million property empire.

Gold Coast Bulletin property searches show FSG’s portfolio includes a block of land between the Gold Coast and Brisbane valued at $5.94 million, the FSG cafe and office in Southport ($4.85 million), a Coomera property ($1.32 million) and 21 other holdings worth $200,000-700,000.

The fate of the properties will be the responsibility of administrators, who will be appointed to comb FSG’s books on June 30.

FSG Australia’s Railway Street office and cafe valued at $4.85 million.

However, the priority for the funds will be to FSG creditors, not back to the State.

FSG last week announced it would enter voluntary administration, putting in limbo 900 staff and thousands of clients in the disability, child services and aged care sectors.

Financial records show the not-for-profit lost between $1m-5.225m over the past three years, despite increasing contributions from the state and Commonwealth.

On Monday, Brisbane company CPL announced it would take on FSG’s disability clients and “many” of its staff, with the other sectors being divided up by the government.

CEO of On Q Lisa Smith pictured in their new office in Southport, will be taking on former FSG employees. Picture Mike Batterham

The Department for Communities, Disability Services and Seniors, which contributed $161 million to FSG over the past five years, said it would not conduct an investigation into how taxpayer funds were managed.

A spokesman for the department led by Minister Coralee O’Rourke said: “We do not have evidence that Department of Communities, Disability Services and Seniors’ funds were misused by FSG.”

ALP: Coralee O’Rourke

LNP Shadow Minister for Communities, Disability Services and Seniors Dr Christian Rowan slammed the decision, saying Ms O’Rourke should be held accountable for State money lost.

“What is concerning is how the Queensland Government failed to pick up on the fact that the company was obviously in trouble and didn’t act before it was too late,” Dr Rowan said.

“Annastacia Palaszczuk’s Minister is now in hiding and refusing to investigate.

“Quite frankly, that’s not good enough.

“Coralee O’Rourke has serious questions to answer about how this happened on her watch.”

The spokesman for Ms O’Rourke’s department said the services of an auditor were enlisted in May this year but found nothing.

LNP Shadow Minister for Communities, Disability Services and Seniors Dr Christian Rowan.

“Our funding was provided for the provision of disability services to FSG clients — and a recent system audit and regular reporting showed these services were delivered appropriately,” the spokesman said.

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“Clients have continued to receive uninterrupted services.

“Once concerns were raised about the future of FSG, the department engaged BDO (auditors) to urgently undertake an immediate independent financial investigation.

“This investigation found FSG’s losses are due to over-delivery of services and providing many non-funded community projects.”

The Bulletin has requested further information about the audit.