NDIS firm Cocoon SDA Care’s cash splash to keep up appearances
An NDIS firm being investigated by federal authorities spent tens of thousands of dollars to gain access to prominent politicians including a future treasurer as it sought to strengthen its appearance of legitimacy.
An NDIS firm being investigated by federal authorities spent tens of thousands of dollars to gain access to prominent politicians as it sought to strengthen its appearance of legitimacy.
Cocoon SDA Care co-founder Zaffar Khan stood with then-Liberal National Party treasury spokesman David Janetzki in front of the Speaker’s chair in parliament in a photo the firm posted to social media three weeks before the Queensland election.
Disclosure logs reveal Cocoon donated up to $5800 to meet the future treasurer at a fundraiser for a local LNP candidate.
Cocoon and its parent company Horizon Solsolutions Australia donated more than $50,000 to the LNP over the past four years, the disclosure logs reveal.
At the same time, the company was heading into major financial trouble and last year built up a debt of almost $10m to the tax office and had to ward off bankruptcy.
Mr Khan is a former bankrupt and was the subject of consumer warnings in 2007 over “get rich quick” investment seminars he was running around the country.
He has been listed on Australia’s national personal insolvency index since August 2020 as having a personal insolvency agreement to settle debts.
Mr Janetzki’s office said he had not met Mr Khan before or since and was unaware of his background.
Cocoon posted on Facebook at the time: “We are excited to share that our Corporate Strategist, Zaffar Khan, had the privilege of attending a dinner meeting with Mr. David Janetzi (sic), Shadow Treasurer of Queensland, and Mr. Jitendra Prasad, LNP for Algester, at Brisbane Parliament House.
“The evening featured insightful discussions on key economic and policy matters, aligning with the growth objectives of our organisation and the broader business community.
“Mr. Zaffar Khan shared perspectives on Queensland’s economic outlook and explored collaborative initiatives for regional development. Grateful for this opportunity to engage with Queensland’s political and business leaders, we remain committed to fostering strategic partnerships and driving innovation.”
The fundraiser, which was held for Mr Prasad – the LNP’s Algester candidate, was attended by about 15 people and included a tour of parliament. Mr Janetzki was guest speaker. The Treasurer’s office said he interacted with Mr Khan for two minutes.
No records could immediately be found of Mr Khan or the Cocoon group of companies asking for money from Treasury since the LNP formed government.
Mr Janetzki said in a statement to The Australian: “There wouldn’t be a politician in any parliament that hasn’t had a photo with thousands of people they briefly encountered. There are serious allegations made in connection with this organisation and they must be thoroughly investigated to safeguard the integrity of the NDIS.”
Cocoon’s spending and the ways in which it gained influence are under scrutiny, with The Australian revealing a long history of concerns about its practices.
The NDIS Quality and Safeguards Commission informed Horizon in March of a proposed permanent ban on the company and its nominated director Muhammad Latif.
The National Disability Insurance Agency began manually reviewing the company’s NDIS payment claims in March, following 32 tip-offs over more than four years. It included a whistleblower complaint from Cocoon’s former chief executive, Tanya Quinn, in August 2023.
With its NDIS payments disrupted as a result of the NDIA’s manual review, the company stopped paying staff wages, including frontline care workers.
Some staff have also discovered the firm stopped paying superannuation last year.
Company insiders say Cocoon is being run by Mr Khan and that the firm sought to gain the appearance of legitimacy by associating with political figures and with displays of wealth, even as its financial troubles worsened.
An audit report attached to Horizon’s most recent financial report last year states that it owed $9.54m to the tax office and was issued with a bankruptcy notice.
Management succeeded in negotiating a payment plan and default judgment was set aside in October, the same month the company donated to the LNP and Mr Khan met Mr Janetzki.
The company received $53.7m in NDIS funding in 2024, and $47m in 2023, according to its financial report.
Cocoon’s most recent donation to the LNP was $1500 for event tickets on February 19.
Just over three weeks before the Queensland election, Mr Khan met the future treasurer at the parliament house fundraiser.
Disclosure logs record Horizon donating $1800 to the LNP on October 4 for “event tickets”, and Cocoon making a $4000 “donation” on October 3.
Cocoon’s headquarters at Eight Mile Plains in Brisbane’s south is not in Mr Prasad’s electorate, instead sitting in the nearby electorate of Toohey.
In 2023, Cocoon and Horizon gave the LNP $1000 on December 15, $4800 on July 3, 2023, $30,000 on June 21 and $2400 on March 7. These were for donations, event tickets and a function.
The largest of the donations in 2023 earned Mr Khan and his staff a lunch with Brisbane Lord Mayor Adrian Schrinner.
In June 2023, Cocoon posted photos on Facebook of Mr Khan and staff members meeting then state Labor government disability services minister Craig Crawford. There were no donations to Labor in the disclosure logs.
Contact David Murray at murrayd@theaustralian.com.au
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