Gold Coast-based FSG collapses, 900 staff out of work

A MAJOR Gold Coast organisation employing 900 locals has gone bust after losses skyrocketed to $5 million in the past year. It comes despite increased government contributions of more than $60 million.

Vicki Batten, CEO of FSG Australia has informed employees the charity would enter voluntary administration as of June 30.

ONE of the Gold Coast’s largest charities has gone bust after three years of increasing losses in the millions.

Freedom, Social Justice, Growth (FSG) Australia, a community support charity offering child and disability services, announced to their estimated 900 staff yesterday that the company would enter voluntary administration as of June 30.

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The email from CEO Vicki Batten sent from an iPhone addressed to all FSG staff stated the board made the decision “after trying so many avenues to convince government to support us through to the NDIS (National Disability Insurance Scheme) roll out and being unsuccessful”.

Artist Darryl Ferguson at the FSG store in Southport. Picture: Jerad Williams

The announcement comes a year after a Royal Commission found that the embattled charity failed to properly investigate reports of child sex abuse, or to ensure others were protected from an alleged perpetrator.

Current management of FSG submitted there was no evidence to substantiate the allegations — but the Royal Commission into child sex abuse rejected every aspect of FSG’s submission.

As per her email to staff, Ms Batten told the Gold Coast Bulletin she believed the NDIS was to blame for FSG’s financial struggles, but would not go into detail on how specifically.

“FSG — like many organisations in our sector — has had to make large investment decisions to prepare for the NDIS, and despite our best efforts it has become clear that we cannot continue to deliver our high quality of support to our customers.”

FSG reported significant losses over the past three years, despite government contributions increasing.

(L-R) FSG CEO Vicki Batten, local MP Rob Molhoek, Training Minister John-Paul Langbroek, Former Premier Campbell Newman, 2014. Photo by Richard Gosling

As of the end of June 2015, financial records show a $1 million loss. By the end of June 2016 the company reported a loss of $2.29 million. At the end of June 2017, the loss had skyrocketed to $5.225 million.

The losses came despite government grants and funding of $54.7 million in 2015, $59.8 million in 2016 and $60.4 million in 2017.

Of those amounts, the Queensland State Government contributed between 80 — 88 per cent of the total figure.

Employee expenses were responsible for the majority of FSG’s recorded costs, jumping from $42.5 million to $56.5 million in three years.

Ms Batten would not comment on the salaries of board members.

Minister for Communities and Minister for Disability Services and Seniors Coralee O'Rourke.

A spokesman for the department said: “The Department of Communities, Disability Services and Seniors is currently working with FSG on the Gold Coast in relation to their ongoing financial viability.

“DCDSS is working collaboratively with other government agencies, and the organisation to identify the best way to continue the delivery of quality services.”

Reviews on FSG’s Seek employer page contained comments such as “heart breaking faith shaking and soul taking” and ”Disorganisation, inefficiency and poor management”.

Ms Batten’s email to staff stated there will be a joint communique going out today announcing a heads of agreement between FSG and another organisation.

Communities and Disabilities Services Minister Coralie O’Rourke is yet to comment on the collapse.