NSW imposes strictest-ever conditions on child welfare charity after audit
NSW imposed its strongest-ever conditions on Allambi Care. A forensic audit uncovered an improper property investment scheme at the charity.
Allambi Care is a Newcastle-based charity for vulnerable children in out-of-home care. The Department of Communities and Justice will now approve its annual budget.
This represents the strongest restrictions the state has imposed on any child protection provider except for ending a contract. A forensic audit found an investment scheme.
Senior staff guaranteed themselves a 20 per cent return on properties leased back to Allambi. The scheme involved just over 10 per cent of Allambi's leased housing.
The audit found Allambi had $30 million in savings while saying it had no money. State funds meant for children's homes and treatment services instead went to pay bills, paint houses, and fund the investment scheme.
Allambi Care receives more than $70 million per year. The charity has said it did nothing wrong, calling the housing plan an innovative response to housing shortages.
- 70 million dollars
- Annual revenue
- 20 percent
- Guaranteed return
- 30 million dollars
- Hidden savings
- 10 percent of leased housing
- Scheme scope
Why it mattersThe case tests how government can hold welfare providers accountable while avoiding ending a contract that would leave vulnerable children without services.
AustraliaNSW's toughest restrictions on a child welfare provider set a precedent for government oversight of charities managing state funding for vulnerable Australians.
✓ Claims checked against the source. checked 2 h ago
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