Cocoon SDA Care consultant claims Australian work permits available for investors in NDIS homes

A spruiker hired by a temporarily suspended NDIS provider claimed it had “ring-fenced pre-approved work permits” for foreign investors in new homes for severely disabled Australians.

EXCLUSIVE

A controversial NDIS provider attempted to entice foreigners to outlay as much as $100 million on building homes for the severely disabled, including by hiring a consultant who claimed it had pre-approved work visas for investors, allowing them to move here “at the earliest opportunity.”

As the provider, Cocoon SDA Care, and its parent company Horizon SolSolutions battle against a temporary ban from the NDIS, an internal financial report has emerged showing how the group hoped to pay tax and lease debts by generating a massive amount of “income from overseas”.

“We are reliant on funds from further borrowings while the business waits for the $100m to be received,” said a July 2023 report for Cocoon, which is wholly owned by Horizon.

In February of that year, a Cocoon “Malaysian launch” was spruiked on Facebook, encouraging investors with a minimum $550,000 to attend Kuala Lumpur’s Four Seasons Hotel for one-on-one meetings with “chairman” Zaffar Khan.

A promotion for a Cocoon SDA investor launch in Malaysia in 2023. Picture: Facebook

The launch was being promoted by Cocoon’s “international team business consultant”, who claimed the group was offering a “guaranteed 15 per cent return on investment per annum providing homes and services for Australia’s most disabled citizens with average annual profits exceeding 30 per cent.”

A few weeks later, the consultant ran a YouTube presentation in which he said Cocoon was “trialling a new hands-off franchise model” which “come(s) with a job within the home itself.

“This is primarily for people who would like to be able to avail themselves of moving out to Australia at the earliest opportunity,” the Cocoon representative said.

“We currently have 50 ring-fenced pre-approved work permits for this scheme.”

This masthead could not confirm whether permits have ever been available in these circumstances. Comment was sought from Home Affairs.

Another promotion for the Cocoon SDA investor launch in Malaysia in 2023. Picture: Facebook

On Monday, Mr Khan confirmed it had hired the consultant who made the claims.

“We hired a company to explore the possibility of bringing international investment into Australia to increase the availability of housing for people with disabilities,” Mr Khan said.

“We didn’t approve (the YouTube) video. We didn’t approve these claims and ultimately, he secured no sales.”

It is unclear where the consultant got his information from, if not from Cocoon and Horizon.

Mr Khan also said: “I have never been chairman or a director of Cocoon or Horizon SolSolutions.”

Rather, he describes himself as Cocoon’s corporate strategist.

Cocoon SDA’s Zaffar Khan. Picture: Supplied

Cocoon develops and operates homes for disabled people across Australia. Last financial year it received more than $50m in NDIS payments.

It’s believed that about 200 residents are in the process of being moved out of Cocoon homes because the NDIS Quality and Safeguards Commission has suspended the group’s registration for 30 days after identifying “serious” safety concerns.

And the NDIA has also stopped paying claims made by the group while it conducts a manual review.

According to the independent auditor of Horizon’s 2024 financial statement, the company was issued with a bankruptcy notice by the ATO late last year over a tax debt of $9.5m. But management negotiated a payment plan and the default judgment was set aside, the auditor said.

Originally published as Cocoon SDA Care consultant claims Australian work permits available for investors in NDIS homes