NDIS provider Cocoon goes into liquidation after permanent ban
Authorities say disability provider Cocoon was involved in serious and systemic misconduct as staff fume over who they believe have been paid first, including a former contestant on reality TV show The Bachelor.
Disability provider Cocoon has gone into liquidation after federal authorities found it had been involved in serious and systemic misconduct.
Horizon Solsolutions Australia, trading as Cocoon SDA Care, entered liquidation on Wednesday, the same day The Australian revealed it had been permanently banned from the NDIS.
While the former bankrupt taxi driver behind the firm, Zaffar Khan, issued a statement thanking staff for their service, company insiders vented their fury at hearing his family members and close associates were paid last week.
Other staff including frontline workers who continued to provide care to vulnerable people with disability as the company fell into crisis have been waiting for wages and entitlements to be paid since March.
One senior staff member said he was informed payments were made to management team members, including Mr Khan’s executive assistant Marg Irving, formerly Marg Zogoulas, a former contestant on reality TV show The Bachelor.
Mr Khan’s sons-in-law Jawad Shah and Hassaan Khan had also been paid, according to the staff member. “It seems they have been picking and choosing who gets their money,” the person said, speaking on condition of anonymity.
Despite the staff member saying this occurred before the company went into voluntary liquidation, Mr Khan on Thursday said all matters concerning finances including staff salaries and payments were being managed by liquidators at Deloitte.
“We are unable to comment on specific individuals or payment matters, as these fall under the responsibility and authority of Deloitte. We respectfully direct all queries to the liquidators for any further clarification,” he said.
The Australian has sought comment from the management team members through the company.
Horizon and its sole director, Muhammad Latif, were informed on Tuesday that they were being banned from providing supports and services to people with disability through the NDIS.
Regulator the NDIS Quality and Safeguards Commission then announced on Wednesday that Cocoon was found to have falsely claimed it provided services to dead or incarcerated NDIS participants in a gross violation of trust.
An investigation by The Australian revealed Mr Latif and Mr Khan were able to keep operating for years despite a series of complaints about the company’s practices and after failing audits under a different company name.
Those affected include Adelaide’s Peter Wilson, who suffered two strokes, is blind and has dementia. Mr Wilson has been stuck at home for four months, unable to go on his favourite outing to Bunnings, after Cocoon wrongly charged for services it never provided until he had no funding left.
In a statement on Thursday, Mr Khan said the liquidation “follows the banning of Cocoon SDA Care and its director by the NDIS”. He added: “As a direct consequence, and on legal advice, the company formally resolved to enter liquidation.”
Horizon also traded as Cocoon Franchise, Cocoon Lifetime Care, Cocoon SDA Accommodation and Cocoon SDA Homes.
Mr Khan described Cocoon SDA Care as “one of Australia’s largest and most innovative Specialist Disability Accommodation and exceptional care providers, employing over 1000 staff and supporting hundreds of participants across the country”.
He said the firm was “abruptly removed from the sector” despite “passing multiple independent audits, ISO9001 (international systems in place) and maintaining a strong record of operational transparency”.
The company “believes this was not the result of operational failure but the outcome of sustained and targeted regulatory action”, he said. “We extend our deepest sympathy and gratitude to our dedicated staff, our participants and their families.
“We know this outcome is heartbreaking and distressing. Please know that your trust, your support and your shared journey with us will never be forgotten.”
David Mansfield and Philip Robinson from Deloitte have been appointed as liquidators.
The permanent ban will come into effect on June 7.
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