Hundreds of staff and participants of Disability Services Australia face uncertain future - ABC News

Hundreds of employees and participants of one of Australia's largest disability service providers face an uncertain future with the organisation entering voluntary administration.

Key points:

• Disability Services Australia have appointed KPMG as their administrators

• DSA's CEO says the company faced financial constraints, compounded by the pandemic

• Shadow NDIS Minister Bill Shorten says the federal government's "savage cuts" played a part in DSA's insolvency

Disability Services Australia, which has operated since 1957 and provides services including at-home support and employment assistance to people with a disability, appointed KPMG as administrators on Wednesday.

The not for profit employs more than 1,600 people across New South Wales and supports more than 1,500 participants with a disability.

Chief Executive of Disability Services Australia Leisa Hart said the organisation had faced "a number of financial constraints" which have been compounded by the pandemic.

"Moving into voluntary administration provides our participants with the certainty of continuity of care while the best path forward is determined," Ms Hart said.

"DSA's management team will work closely with the KPMG team to continue to support our participants and employees during the administration process."

Restructuring services partner at KPMG Gayle Dickerson said administrators will work with the existing management team to continue delivering services "as normal" while an immediate assessment was undertaken.

"DSA's first priority in administration remains the welfare of its participants," Ms Dickerson said in a statement.

"I reiterate that the ongoing care and support of participants is our first and foremost priority and we are working closely with employees, participants and their guardians, families and government bodies to ensure that the quality of care and health and wellbeing of participants is maintained during the administration process."

She said KPMG will talk with stakeholders in the coming days, and a meeting for creditors will be held next month.

Minister Linda Reynolds is accused by the opposition of pulling the "financial rug out from under" the DSA.(

Reuters: Brendan Smialowski/File photo

)

Shadow Minister for the National Disability Insurance Scheme Bill Shorten pointed the finger at the federal government for the organisation's woes, accusing the Coalition of pulling the "financial rug out from underneath them".

"DSA has been struggling during COVID for a range of reasons but there is no doubt the Morrison government's 10 per cent cuts to providers of supported independent living have contributed to DSA becoming insolvent," he said.

"This is what happens when there are savage Liberal cuts without any forward planning.

"NDIS Minister Linda Reynolds wants less money in the NDIS and has presided over cuts to people with disability in supported independent living," Mr Shorten said.

When contacted for a comment by the ABC, a spokesperson for the Minister for the National Disability Insurance Scheme Linda Reynolds said: "The government's priority is continuity of support for NDIS participants.

"The administrator is working closely with employees, participants and their families to ensure this."

She also said: "The [NDIS Quality and Safeguards] Commission and the NDIA have well-established protocols to ensure that participants continue to receive supports following the withdrawal of a provider."

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2021-08-25 13:08:43Z
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