NAAJA board sacked CEO Priscilla Atkins after she raised corruption allegations: judge
The board of Australia’s largest Aboriginal legal service unlawfully sacked its CEO after she raised serious allegations of corruption against senior members of staff, court finds.
The board of Australia’s largest Aboriginal legal service unlawfully sacked its former chief executive Priscilla Atkins after she raised serious allegations of corruption against senior members of staff, a Federal Court judge has found.
Judge Natalie Charlesworth on Thursday found the board of the North Australian Aboriginal Justice Agency acted unfairly when instigating a so-called independent audit targeting Ms Atkins after she levelled corruption allegations at finance chief Madhur Evans.
She also found then-chair Colleen Rosas deliberately withheld information from the audit, conduct which was “not consistent with a genuine desire” for the audit to make fair and factual findings.
“The court has accepted Ms Atkins’ argument that the resolution for her termination was not made in compliance with NAAJA’s constitution,” Justice Charlesworth said on Thursday. “NAAJA’s argument that the resolution was valid, notwithstanding that noncompliance, is rejected.”
The judgment comes amid chaos at the beleaguered legal service, after The Australian this month revealed its current chair Hugh Woodbury – who replaced Ms Rosas as a matter of process – assaulted his pregnant partner by standing on her stomach, slamming her arm in a door, pushing her to the ground and swearing at her.
Concerning activity within NAAJA – which culminated in a mass exodus of staff and the agency having to suspend services in Alice Springs for six months – has led to lawyers and MPs to call for the organisation’s board to be “hosed out” and replaced entirely.
Indigenous Australians minister Linda Burney this week announced she had met with Attorney-General Mark Dreyfus and NT Attorney-General Chansey Paech about the ongoing situation, saying she was “deeply concerned” about NAAJA governance and calling on the board to “show leadership when it comes to family violence”.
Justice Charlesworth’s verdict brings to an end the longstanding feud between Ms Atkins and NAAJA, after Ms Atkins launched the legal proceedings against the embattled organisation last year.
In the proceedings, Ms Atkins alleged she was fired after accusing Ms Evans of making discreet payments directly to Ms Rosas, bullying employees, recording interactions with her colleagues without their permission, disclosing confidential company information and failing to use her work-issued credit card in accordance with policy.
The court heard that upon learning of Ms Atkins’ allegations against Ms Evans, Ms Rosas accused Ms Atkins of forging her signature on a contract extension document, securing her position as chief executive – and its $350,000 salary – for another five years.
Justice Charlesworth on Thursday found there was “insufficient” evidence to support this accusation.
“More specifically, the evidence was insufficient to support a finding that the allegation about the use of the chairperson’s signature was a bonafide allegation,” she said. “The court is not satisfied that the allegation was not made by a person actuated by Ms Atkins’ exercise of the workplace right to make the complaint (against Ms Evans).”
Once Ms Rosas accused Ms Atkins of forging her signature, Ms Atkins was suspended from the role of CEO and NAAJA employed external auditors BDO to conduct an investigation into her.
The findings of the BDO report were:
• Ms Atkins personally purchased nine vehicles over a four-year period by way of a “novated lease” arrangement that was not approved by the board. The cars included two Range Rover Sports ($88,253 and $129,118), two Jeeps ($22,500 and $8736) and VW Amarok ($28,700);
• Ms Atkins attempted to cash out her annual leave entitlements to pay NAAJA back the money she had used for the cars. She cashed out more annual leave then she was entitled to;
• Ms Atkins charged personal expenses to her corporate card, including four iPads and a $1320 artwork;
• Ms Atkins failed to reimburse NAAJA for personal expenses charged to her credit card;
• Instances where the approver signature on credit card reconciliation did not match any of the approved approver signatures;
• At least 37 months of credit card reconciliations were not approved by the board as required.
Ms Atkins has always denied the allegations made against her in the BDO report.
But Justice Charlesworth on Thursday slammed NAAJA for the way the audit was conducted, saying BDO was deliberately confined in its investigation. She criticised Ms Rosas for withholding critical information from BDO.
“The court has concluded that information relevant to the subject matter of the investigation was withheld from BDO and from the board, specifically by NAAJA chairperson,” she said. “That conduct is not consistent with a genuine desire to have BDO independently make fair and factual findings in connection with the subject matter of the investigation.”
Justice Charlesworth said in order to win the case, NAAJA would have had to prove BDO’s report “did not form a part of a design to remove Ms Atkins from the workplace because she had made the complaint, including by giving a false appearance of fairness and independence through the engagement of an external consultant”.
She said the directors who joined in the resolution to terminate Ms Atkins’ appointment relied on the report of BDO, and on “the asserted status of the investigator as an independent auditor”.
She also found Ms Atkins was denied procedural fairness by NAAJA directors who promised to provide her response to the BDO allegations to the board, but failed to do so.
“The evidence does not demonstrate that they, in fact, gave any meaningful consideration to the response that Ms Atkins gave to the allegations against her,” Justice Charlesworth said.
“Most critically, they determined not to provide Ms Atkins response to the board for its consideration, notwithstanding that in the letter to Ms Atkins they assured her that that would be done.”
A statement from NAAJA released late Thursday night said the organisation was in the process of reviewing Justice Charlesworth’s judgment.
“NAAJA maintains a strong view that the board was justified in its decision to seek to terminate the employment of the former CEO and, as a result, we are surprised and disappointed by today’s decision,” a NAAJA board spokesperson said.
“We will review today’s judgement and seek legal advice regarding our next steps.”
Justice Charlesworth will publish the full reasons for her judgment on Friday.
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