MI Care reports misuse of money amid Magnetci Island service closure
An aged care provider has said it is closing after locating possible misuse of public funds on its books, claiming a damning audit revealed 78 per-cent non-compliance with regulations.
An essential aged care provider on Magnetic Island - set to close within days - has aired explosive allegations after community criticism.
MI Care’s decision to step back from offering aged care services - which the organisation says is due to new regulatory requirements signed into law by the federal government that took place in early November - has been met with concern by the local community.
In a letter to the editor bearing the MI Care letterhead the organisation said it was trying to clear up “misconceptions and rumours” regarding their decision to no longer offer aged care services.
The missive, posted on the Magnetic Island Community News website, claims that in April of 2024, the organisation found they were in breach of Aged Care Quality & Safety Commission guidelines - which stipulate aged care providers must be audited every three years.
“In April 2024 the [company] became aware that the organisation had not been audited for 8 years.” the letter reads.
“In the absence of a Commission audit the [company] decided to employ an independent compliance auditor to conduct a full week-long Aged Care Commission style audit to ensure that the organisation was meeting compliance requirements or that we had strategies in place to address any noncompliance.
“The result of this audit was a 27-page noncompliance report indicating that the organisation was 78 per cent non-compliant against all 80 Aged Care Commission Standards and had clearly been non-compliant for several years.”
Most alarmingly, the company alleged in the letter that public funds had been potentially misused by the organisation.
“We also discovered that some of our clients had been receiving services and purchases specifically excluded in our funding contracts, leading to a report being lodged with the fraud department of DHDA (Department of Health, Disability and Ageing) outlining significant misuse of public funds over many years,” the letter reads.
“None of this was the fault of our clients. Examples included very expensive full renovations, purchase, maintenance and repair of airconditioning units, purchase of electronic equipment – all of which are very specifically excluded in our funding contracts (past and present).
“To date, we have not had a response from the Fraud Department.”
When contacted by the Townsville Bulletin, the DHDA said it wasn’t at liberty to discuss individual cases.
“The department takes every allegation of fraud incredibly seriously however, we cannot comment on individual cases. Each allegation provided to the department will be handled appropriately through the established channels,” the spokesman said.
“Continuity of care is always prioritised when a provider can no longer deliver aged care services.
“The department has been supporting the Magnetic Island Community Care through its closure.
“All impacted clients have now been transferred to new providers and continue to receive home care services.”
Sources with inside knowledge of the organisation have disputed MI Care’s explanation for the decision to stop offering services.
The whistleblower claimed at various points discussions were had about the regulatory requirements - including the idea of the hiring of a registered nurse.
The whistleblower also contradicted the company’s explanation for the decision to wind down aged care services, saying their explanation that it was solely due to regulatory noncompliance was not correct, instead they thought it was also due to a loss of clients, leading to financial pressure.
MI Care were contacted for comment by the Townsville Bulletin on November 27 with questions relating to the whistleblower’s claims, and again on December 3.
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Originally published as MI Care reports misuse of money amid Magnetci Island service closure
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