NDIS provider on the verge of collapse over alleged embezzlement scandal exposé
- Replies 1
Disclaimer: Names with asterisks (*) have been changed to protect privacy of the persons in this story.
The National Disability Insurance Scheme (NDIS) has been a beacon of hope for many Australians with disabilities, providing them with the support and services they need to live fulfilling lives.
However, the stability of this essential service is only as strong as the providers that deliver it.
In a concerning development, Sydney-based NDIS provider Sykee has come under scrutiny amid fears of financial instability and the potential impact on its 200 clients and staff.
Sykee, which specialises in mental health services, has been a part of the NDIS landscape for three years and employs around 60 support workers and 10 head office staff.
Alarmingly, since July, the company has failed to pay staff their superannuation and has been increasingly late in paying wages.
This has led to a wave of resignations and growing concern among employees about the company's financial health and the continuity of care for its clients.
In a dramatic turn of events, Sykee's sole director, Joshua Scott, sent an all-company text message at the end of last month, revealing that the business was undergoing a 'forensic investigation’.
He urged staff to come forward with any knowledge of 'operational misconduct’, including ‘fraudulent practices’, billing irregularities, and unexpected charges to clients.
‘There have been some issues,’ Scott said. ‘I’m only making payments to those who are making the business run prior to the ones making the business work.’
‘I’m paying the workers before I pay super. I’m paying the workers before other creditors.’
This message followed the discovery of what Scott described as 'some sort of weird embezzlement' that had strangled the company's cash flow, with losses reportedly reaching six figures.
Despite these challenges, Scott has insisted that Sykee will not collapse.
However, his actions, including cancelling meetings with the press and threats of legal action, have done little to assuage the fears of employees and clients alike.
The repercussions of Sykee's financial troubles are far-reaching. Staff members have reported falling behind on rent and mortgage payments, with one support worker unable to afford fuel to get to their shift.
The emotional toll is also significant, with employees like Fiona*, 25, expressing the overwhelming strain of receiving pay late and the heartbreak of not being able to visit family due to financial constraints.
‘I’ve been struggling to keep up with my mortgage payments and other bills, resulting in late fees that only deepen the financial burden,’ Fiona said.
‘With the holidays approaching, it’s heartbreaking to know I won’t be able to visit family members this year due to these financial constraints.’
With over 11,000 businesses across Australia collapsing in the past year due to the cost-of-living crisis and recession fears, the stability of NDIS providers is of paramount concern.
Employees like Sean*, 25, who has not received his superannuation since August and whose pay has been over 12 days late, are losing faith in the company's future and are actively seeking new employment opportunities.
‘Basically, everyone I’ve talked to is looking for new jobs. None of us see much future in the company,’ he said.
‘Something clearly went wrong.’
Sean* has filed an anonymous complaint to the Australian Tax Office (ATO).
The potential collapse of an NDIS provider like Sykee not only affects the livelihoods of its employees but also poses a significant risk to the continuity of care for clients with complex mental health or neurological issues.
Workers like Hayden*, who have built relationships with their clients, are faced with the difficult decision of seeking new jobs while worrying about the well-being of those they support.
‘I have a lot of really good things to say about Sykee. It’s just a shame. There’s an underlying feeling of betrayal,’ he said.
Have you experienced a similar story or concerns about your NDIS provider? Share your stories with us in the comments below!
The National Disability Insurance Scheme (NDIS) has been a beacon of hope for many Australians with disabilities, providing them with the support and services they need to live fulfilling lives.
However, the stability of this essential service is only as strong as the providers that deliver it.
In a concerning development, Sydney-based NDIS provider Sykee has come under scrutiny amid fears of financial instability and the potential impact on its 200 clients and staff.
Sykee, which specialises in mental health services, has been a part of the NDIS landscape for three years and employs around 60 support workers and 10 head office staff.
Alarmingly, since July, the company has failed to pay staff their superannuation and has been increasingly late in paying wages.
This has led to a wave of resignations and growing concern among employees about the company's financial health and the continuity of care for its clients.
Sykee was scrutinised over an alleged embezzlement scandal. Credit: Sykee Website
In a dramatic turn of events, Sykee's sole director, Joshua Scott, sent an all-company text message at the end of last month, revealing that the business was undergoing a 'forensic investigation’.
He urged staff to come forward with any knowledge of 'operational misconduct’, including ‘fraudulent practices’, billing irregularities, and unexpected charges to clients.
‘There have been some issues,’ Scott said. ‘I’m only making payments to those who are making the business run prior to the ones making the business work.’
‘I’m paying the workers before I pay super. I’m paying the workers before other creditors.’
This message followed the discovery of what Scott described as 'some sort of weird embezzlement' that had strangled the company's cash flow, with losses reportedly reaching six figures.
Despite these challenges, Scott has insisted that Sykee will not collapse.
However, his actions, including cancelling meetings with the press and threats of legal action, have done little to assuage the fears of employees and clients alike.
The repercussions of Sykee's financial troubles are far-reaching. Staff members have reported falling behind on rent and mortgage payments, with one support worker unable to afford fuel to get to their shift.
The emotional toll is also significant, with employees like Fiona*, 25, expressing the overwhelming strain of receiving pay late and the heartbreak of not being able to visit family due to financial constraints.
‘I’ve been struggling to keep up with my mortgage payments and other bills, resulting in late fees that only deepen the financial burden,’ Fiona said.
‘With the holidays approaching, it’s heartbreaking to know I won’t be able to visit family members this year due to these financial constraints.’
With over 11,000 businesses across Australia collapsing in the past year due to the cost-of-living crisis and recession fears, the stability of NDIS providers is of paramount concern.
Employees like Sean*, 25, who has not received his superannuation since August and whose pay has been over 12 days late, are losing faith in the company's future and are actively seeking new employment opportunities.
‘Basically, everyone I’ve talked to is looking for new jobs. None of us see much future in the company,’ he said.
‘Something clearly went wrong.’
Sean* has filed an anonymous complaint to the Australian Tax Office (ATO).
The potential collapse of an NDIS provider like Sykee not only affects the livelihoods of its employees but also poses a significant risk to the continuity of care for clients with complex mental health or neurological issues.
Workers like Hayden*, who have built relationships with their clients, are faced with the difficult decision of seeking new jobs while worrying about the well-being of those they support.
‘I have a lot of really good things to say about Sykee. It’s just a shame. There’s an underlying feeling of betrayal,’ he said.
.png){kind=icon}
