ACT Senator David Pocock: “We knew things were bad.” Photo: Screenshot.
ACT independent Senator David Pocock has called for former Brindabella Christian College directors to be prosecuted for multiple breaches of the Corporations Act identified by Deloitte administrators.
Senator Pocock also praised the bravery of community members who came forward to his office with information and spoke out against what was happening in their school.
He told the Senate on Tuesday that the administrator’s Second Creditors report on the activities of Brindabella Christian Education Ltd confirmed a litany of breaches of the Corporations Act.
“We knew things were bad; this report exposes just how bad things were,” Senator Pocock said.
“The administrators found that the directors put their own financial interests before the college’s.”
Senator Pocock said administrators found the directors had attempted to reclaim property – the solar tree – in the days before Deloitte came in and could be criminally prosecuted for their offences.
“I hope that the authorities will now prosecute them to the full letter of the law,” he said.
Senator Pocock noted alleged abuses of the company credit card to pay for hotel accommodation, Uber Eats, and takeaway food purchases, as well as $30,000 in donations to the Liberal Party between 2021 and 2024.
“This is despite the fact that they’re a registered charity and are prohibited from supporting political parties,” he said.
Senator Pocock told the Senate that directors travelled to the United States to buy a “hugely expensive robot dog” at a cost of more than $460,000 (including related travel expenses) when the school was allegedly trading while insolvent.
“They owed creditors, including staff, parents and the ATO $12.2 million despite getting over $10 million of Commonwealth money in just one year, money that should have gone towards the education of young people,” he said.
Senator Pocock said the school community was put through years of hardship.
“What struck me the most was the absolute culture of fear of reprisals, and I’d like to again thank the good people in the school community who have stepped up and seen a huge change to their college,” he said.
The report and its findings are now with the corporate regulator, the Australian Securities and Investment Commission (ASIC), which will determine whether to continue investigating BCEL and bring charges against the former directors.
The Second Creditors Meeting will be held on Thursday (31 July) and administrators will recommend that the company be wound up to allow creditors to be paid out.
The successful sale of Brindabella Christian College to multi-state school operator Christian Community Ministries for $30 million means no creditor will be out of pocket.
