State fails to answer FSG grant queries

EMPLOYEES of a failed Gold Coast charity claim they have been told not to speak out about the company’s inner workings.

On Wednesday, FSG Australia’s 900 employees were informed the community service provider would enter voluntary administration as of June 30.

They remained in a state of limbo with rumours FSG would be merged or acquired by another company, but no guarantees of continued work.

Several employees contacted the Bulletin to talk about poor management under strict anonymity. Some even created fake Facebook accounts to speak.

Yesterday, employees received an email confirming that services would continue and FSG had been “negotiating with a major service provider”.

This was supported by FSG’s primary funder, the Queensland Department of Communities, Disability Services and Seniors, led by Minister Carolee O’Rourke.

“The department is not going to comment further on this matter at this stage as it is still unfolding and we understand that there will be a joint communique going out on Friday announcing a heads of agreement between FSG and another organisation,” a spokesman said.

“The department believes that this will be the best outcome possible for the clients and employees and we thank FSG Australia for the quality services that it has provided to its clients throughout the entire period that it has been funded by the Queensland Government.”

The department failed to give detailed answers to the questions of how the $161 million of State funds contributed to FSG over the past five years were so badly mismanaged.

When asked if any investigations took place after the charity reported increasing losses three years running, it said: “The department monitors quarterly and annual financial and service delivery reporting and raises issue of concern with funded providers as necessary.”

When asked for clarification it declined to answer.

It also confirmed FSG is essentially self-governed when it comes to the $60 million of taxpayer money it received each year.

When asked if there is an authoritative board that monitors how State funds are managed, it replied: “Yes. The FSG board has access to the full accounts of the organisation and is responsible for oversighting day-to-day operations.”