New NT Auditor-General Jara Dean leaves Tas Southern Cross Care in midst of $6.9m underpayment
The Northern Territory’s new financial watchdog is leaving his posting at Tasmania’s largest aged care operator after a $6.9m underpayment scandal. Find out more.
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The Territory’s new financial watchdog is leaving his posting at Tasmania’s largest aged care operator after a multimillion-dollar underpayment scandal.
Last month parliament announced the appointment of Jara Dean as the new Auditor-General for the next five years, replacing Julie Crisp as she hit the 10-year term limit.
Mr Dean is currently the chief financial officer of Southern Cross Care, Tasmania’s largest aged care operator, which has been rocked by a Fair Work Ombudsman staff underpayment investigation.
An enforceable undertaking was signed in September, highlighting that about 1708 workers had been underpaid to the tune of $6.9m between 2015 and June 2022.
A Fair Work report said the board recognised it had failed to correctly apply overtime provisions for four enterprise agreements in late 2019, and reported the issues to the Ombudsman in August 2021.
The $6.9m underpayment issue largely impacted nurses and community care workers, along with some cleaners, laundry and maintenance staff, with the average underpayment sitting at $4000.
One staff member was owed $220,000.
According to his LinkedIn, Mr Dean joined SCC in January 2021, seven months before the aged care service reported to the Ombudsman.
There is no suggestion of any wrongdoing by Mr Dean, or that he caused or contributed to the underpayments in any way.
“The decision to self-report (was) based on the outcomes of a preliminary independent investigation which was underway before I joined the organisation,” Mr Dean told the NT News.
Mr Dean confirmed the independent investigation was completed in April 2022, and then remediation process began, with an enforceable undertaking signed in September 2023.
“At that time, Southern Cross Care had already repaid back wages, superannuation and interest to current employees and as many former employees it was able to contact,” Mr Dean said.
Back wages owed to former, uncontactable employees were paid to the Commonwealth.
A month before the Fair Work decision, both SCC’s chief executive Robyn Boyd, and chairman Stephen Shirley resigned.
Mr Dean stressed the importance of financial oversight within organisations.
“This process highlighted the importance of having the right systems in place to ensure employees are paid in accordance with the relevant rules, and making sure payroll and rostering systems keep pace with complex industrial instruments and laws and changing organisational demands,” Mr Dean said.
Mr Dean has previously worked as an Deloitte audit director, a National Technical Senior Manager at financial services company Crowe Horwath Australia and was the assistant Auditor-General Financial Audit at the Tasmanian Audit Office, according to his LinkedIn.
Chief Minister Eva Lawler supported Mr Dean’s appointment, saying he had been chosen by an independent selection process for the critical role of the Territory’s top financial officer.
“Applicants were required to demonstrate their capacity to fulfil the functions of the Auditor-General and of an agency chief executive officer, and to provide high quality advice in relation to audit matters, while displaying the highest levels of integrity, impartiality and confidentiality,” Ms Lawler said.
“The Advisory Panel was satisfied with Mr Dean’s ability to fulfil the functions of the role as a statutory officer, while navigating a highly political context, with integrity and independence.”
Amid questioning in the Territory parliament Leader of Government Business Chansey Paech confirmed that the Opposition, as well as Independents were consulted and asked to provide their comments and views on Mr Dean’s appointment.
Mr Dean will take over the Auditor-General role from September 12.
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Originally published as New NT Auditor-General Jara Dean leaves Tas Southern Cross Care in midst of $6.9m underpayment
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