Carol Altmann – The Terrier

The plot thickens around the departure of the Lyndoch Living CEO, Doreen Power, with speculation that Ms Power’s sudden exit up the Princes Highway is linked to financial issues surrounding Lyndoch that are now under investigation.

I’ve spent the past nine days digging into exactly why the axe fell so quickly on the CEO last Thursday week (Aug 4) after years of allegations about Ms Power’s management style fell on deaf ears and the Lyndoch board continued to back her to the hilt.

As was reported here, Ms Power was confronted by board chair Sue Cassidy and treasurer Kane Grant and, soon after, left her office armed with two bags of belongings.

As was also reported here, the day before Ms Power left, WorkSafe had received a long list of complaints about Lyndoch lodged by a law firm on behalf of the complainants.

This could have been the final blow.

But no.

I have since learned there is mounting concern about Lyndoch’s financial position, including whether information relied upon to build Lyndoch’s financial picture has been accurate.

These concerns include:

the financial impact of changes to the payment system for home care packages, with Lyndoch no longer having access to a big pot of home care funds ($2.5 million as of March 2021) that sat in its bank account;

whether this big pot of funds for home care packages was used to pay for other services – say, for example, toward the new medical clinic – in the hope it could be later topped up by home care clients (a Ponzi-style approach);

the financial impact of much greater competition in home care packages, which has gouged Lyndoch’s home client list;

the financial impact of having between 50 and 55 empty beds across Lyndoch and May Noonan Hostel – unprecedented;

concerns about the impact of rising interest rates on the $12 million borrowed by Lyndoch to fund its new $22m medical clinic;

concerns about the financial impact of having five apartments for sale in the Waterfront Living complex;

the difficulty of selling these apartments amid concerns about the deteriorating condition of their exteriors;

concerns Lyndoch must legally pay out the owners and/or estate of these apartments after a certain time, regardless of whether the apartment has sold;

concerns raised by residents within Waterfront Living about the location and use of their annual maintenance fee/sinking fund.

That’s a lot to take in, but it all comes down to cash flow: what Lyndoch expected to bring in, what it has to pay out.

And the terrible possibility facing the Lyndoch board is that all is not what it seemed.

Two important things to say here:

First is that residential accommodation bonds are guaranteed by the Federal Government, so – regardless of where this ends – these are protected by law and residents and their families can take comfort they are not at risk of losing their money.

Second is that the resignation of the most recent Chief Financial Officer was clearly yet another warning bell.

In fact four Chief Financial Officers leaving in four years is not just a warning bell, but a big loud hooter that wakes everyone in the night.

If what I am being told now is correct, and I believe it is, then what we have always feared is coming to pass.

We tried to warn the board and they didn’t listen.

Collectively, this house-of-cards scenario was raised more than 18 months ago on this page, by the Terrier, then by former Chief Financial officer Allan Conway, and then by the Keep Lyndoch Living group which formed because of unanswered questions over Lyndoch’s finances.

Mr Conway set the alarm bells off, but nobody listened.

The Keep Lyndoch Living team led by Jim Burke and Prof James Dunbar tried to raise the alarm, but nobody listened.

And The Terrier – 162 stories later – tried to raise the alarm, and nobody with the power to act, listened.

But the board is listening now and so it must, because they are responsible for not asking the hard questions.

It is now incumbent upon the board chair Sue Cassidy and treasurer Kane Grant to step up and tell us what is going on.

They need to assure the community that all is well, that none of what I have raised here is correct, that Lyndoch’s finances are exactly as they should be, and that Ms Power is on annual leave because she decided to take a holiday to Port Douglas.

Now is the time for plain speaking, not bullshite about annual leave.

Now is the time for absolute, rock solid, honest truth.

Carol Altmann – The Terrier

The crisis around Lyndoch Living continues to deepen.

The following is a statement from the former Chair of Plenty Valley Community Health, Marcia O’Neill, where the CEO of Lyndoch Living Doreen Power worked briefly before being employed by Lyndoch.

Ms O’Neill has called upon the Lyndoch board to resign, and for an administrator to be appointed urgently.

Ms O’Neill is an experienced director and board chair, and a Fellow Certified Practicing Accountant, (FCPA) which recognises global experts in the field of accounting and business. When people the calibre of Ms O’Neill say the Lyndoch board must go, it must go:

“I respect and thank Percy Eccles for his courage in speaking up and I certainly understand his fear from past experiences in dealing with Ms Power when I was Chair of Plenty Valley Community Health (PVCH).

I see history repeating at Lyndoch Living, it’s not the first time, however in this frightful case the damage has been prolonged and action by the Board seriously lacking.

Fortunately, there has been tenacious reporting – which was courageous in the face of threats of litigation – providing some transparency by a local journalist which has documented the issues, decline and terrible harm being perpetrated at Lyndoch Living.

This reporting incurred threats of litigation personally against The Terrier and it remains to be seen if this was financed by Lyndoch Living.

Further, I believe Percy Eccles’ comments about the Boards’ relationship with the CEO, the comments ring very true, and if so, there is a breach of Directors’ Duty. They should resign.

Ms Power’s time at PVCH was very short lived.

PVCH Board consisted of experienced professionals united by courage and integrity with a sound understanding of Directors’ Duties and Corporate Law, and expertise in Corporate Governance.

To my certain knowledge, the true events at PVCH were omitted from Ms Power’s application (to Lyndoch Living) and in the reference checks submitted by the recruitment agent. This too needs to be investigated.

The same search agent was involved when PVCH recruited Ms Power from Seymour.

This was before I became chair of the PVCH, but to my certain knowledge the true events of what happened at Seymour were also not presented to the selection panel.

Members hold board members accountable and Lyndoch’s exclusion of general members means there is no recourse or method of accountability unless the regulator steps in and appoints an administrator.

In this case, it’s urgent.

Companies Limited By Guarantee take millions in Federal and State funding and must be held to account.

Sadly, I understand from experience that there will likely be quite protracted and expensive proceedings ensuing, and my thoughts are with the present and past staff and the residents and families of Lyndoch Living and the people of Warrnambool.”

Carol Altmann – The Terrier

Former Lyndoch Living board member Percy Eccles has called for the entire board to “consider their positions” in the face of rising pressure for them to resign.

Mr Eccles, who served on the board for almost 10 years before his resignation last year, was speaking after CEO Doreen Power was stood down last Thursday.

He said he believed the board was “led by the CEO” and that they followed her direction, rather than the reverse.

“If the information I have been reading (about the CEO being stood down) is correct, then it’s a very good day for Lyndoch,” he said.

“I call upon all of the board members to consider their positions, because it’s my belief that they were led by the CEO, rather than the CEO being led by the board.”

Mr Eccles said it was one of the greatest pleasures of his life when he served as a Lyndoch board member in the early years, but that this changed dramatically in recent years.

“As a board member for almost 10 years, it was one of the joys of my life to serve the people and the staff, especially when Lyndoch was under the leadership of former CEO Rhys Boyle,” he said.

“But in the few years prior to my resignation, I have never been more disappointed in the board’s direction,” Mr Eccles said.

Mr Eccles has been unable to speak publicly until now due to fears of legal action by the highly litigious CEO.

Following reports on The Terrier that the CEO has departed, however, Mr Eccles said he felt able to speak up.

While Mr Eccles could not comment on specific discussions within board meetings, it’s understood one of the many issues he pursued vigorously while on the board was a breakdown of how much was spent each year on lawyers and consultants.

A line-by-line breakdown was never provided.

[I have also attempted to obtain this breakdown, but the figures are exempt from Freedom of Information due to Lyndoch now being a quasi-private company.]

It’s widely known within Lyndoch, however, that a handful of highly paid consultants have been contracted multiple times for their services.

One of these includes a consultant who had an existing relationship with Lyndoch and was on the selection panel when the CEO was selected in 2014.

That particular consultant, who is not from Warrnambool, has since been employed multiple times and was a regular attendee at board meetings. It’s understood this consultant was paid $3000 a day.

It’s also known that, in recent years, Lyndoch changed its legal firm from a local based firm to a top law firm in Melbourne who, among other things, was paid by Lyndoch to launch personal defamation actions on behalf of the CEO and another corporate staff member.

Mr Eccles was also one of three board members on the selection panel when Ms Power was appointed in 2014.

Mr Eccles said he did not agree with the choice of Ms Power and made this known to the panel at the time.

When the other two board members decided Ms Power was the best applicant, however, he signed off on the appointment for the sake of cohesion.

Ms Power’s tenure has seen a dramatic decline in residential care at Lyndoch, largely due to a mass exodus of experienced staff, many of whom tried to speak up about the toxic culture that had developed.

The board did nothing in response to these concerns.

Lyndoch chair Sue Cassidy told media and staff Ms Power was on “annual leave” as of last Thursday. It’s still not clear exactly what prompted the board to suddenly stand Ms Power down.

Pressure is now mounting for the board to follow, with almost 2000 signatures in an online and offline petition that began before Ms Power’s departure.

Carol Altmann – The Terrier

Lyndoch staff were today sent a message from board chair Sue Cassidy announcing that CEO Doreen Power is on ​”​annual leave​”​.

The chair may be hamstrung, legally, by what she can say at this point, but “annual leave” only creates confusion and uncertainty for staff.

The same statement was made to the local paper and explains nothing.

This is how Lyndoch has rolled for the past four years: full of uncertainty, mistrust, confusion and “who do we believe?”.

So, in the face of this “who do we believe?”, I again defer to my rock solid sources​ ​who have never let me down these past four years while ​we have navigated ​a​ lonely and torrid river toward the truth​.

I can tell you this: Ms Power went to work yesterday and was gone from her office by 4pm, apparently lugging two large bags. They were not suitcases packed for a trip to Port Douglas.

Also in the building yesterday afternoon were board Chair Ms Cassidy and Treasurer Kane Grant who met with the CEO.

They were not checking on her holiday plans.

What I understand is at that meeting, the CEO was given the option to resign, or an independent investigation would be launched into the many allegations surrounding her “management style”.

The board would then use the results of this investigation to make a decision on her future.

Such an investigation would protect the board from any claims by Ms Power of unfair dismissal, because – as we know – the board has fully supported the CEO and everything she has done.

Ms Power now has a choice while on “annual leave”: resign and, most likely, be paid out for the remainder of her contract OR remain on leave and be mired in a full-blown investigation.

But why did the board act NOW? Why not last week? Or last month? Or last year?

My sources tell me there was movement from ​health worker unions and WorkSafe that was about to hit the board with a sledgehammer.

Worksafe and the State Health Minister have been watching Lyndoch closely, and my sources tell me that Wednesday, the day before Ms Power was confronted by the board members, another long list of complaints had been formally lodged with Worksafe by a lawyer.

There can only be so many complaints and allegations about over-work, intimidation, bullying, toxicity and pressure to “do certain things”, before the hammer swings.

The board has legal obligations around staff safety which it must uphold or it may face serious penalties as individuals, including fines and jail.

The State Minister also has a duty of care, as Lyndoch Living is contracted by the State Government to run its state-funded beds at Lyndoch.

This explains a lot.

We all know the seven board members didn’t wake up yesterday morning and suddenly decide the CEO was not the same person they had backed all the way for seven years.

Just three weeks ago, the board refused to let our local MP speak confidentially at its board meeting about the CEO.

But yesterday, after our local MP spoke about the CEO in Parliament on Tuesday, they were all action stations.

Turn out they could be all running for the life boats because with WorkSafe now heavily on the case, it’s either the CEO, or it could be them.

Trouble is, the board has lost community trust and credibility.

We lost faith in them a year ago, not only because they have continually backed the source of all the toxicity and troubles, but they have treated the community with contempt.

They must go.

All of ​those responsible for enabling the culture that has almost killed Lyndoch cannot be a part of its ​healing and its ​renewal.

The next Lyndoch AGM is in October: all board positions should be advertised now, for a complete spill and a new start.

We, as a community, deserve nothing less than a clean sweep.​

Carol Altmann – The Terrier

Why didn’t Matthew meet Sue?

A golden opportunity to add significant political pressure to the Lyndoch Living board went begging last week.

Matthew Guy is the State leader of the Liberal Party and Leader of the Opposition.

Sue Cassidy is the chair of Lyndoch Living…and a member of the local Liberal Party branch.

Despite this direct political relationship, when Mr Guy visited Warrnambool last week to pump up support ahead of the November state election, he did not meet with Ms Cassidy or any other board members about Lyndoch, which is surely one of the most concerning issues facing this electorate.

Mr Guy, on invitation from South-West MP Roma Britnell, instead met privately with Lyndoch resident family members, ex Lyndoch staff and members of Keep Lyndoch Living, to hear their concerns first hand.

These are the stories we have been shouting from the rooftops for the past four years and which I had hoped Mr Guy might know about by now.

He obviously didn’t and while I have no doubt Mr Guy conveyed genuine shock, concern and compassion to this private meeting, nothing has come of it since.

Instead Mr Guy, the next day, called for the board to be more transparent, echoing the same call made by Ms Britnell six weeks ago at the Lyndoch rally.

It has made no difference.

Lyndoch ignored Ms Britnell then and it has ignored Mr Guy now.

The board has not blinked: there has been no response from the chair.

A memo from the CEO to staff, posted here on Friday, refused to accept that community concerns go beyond a media beat up and there was no mention of Mr Guy.

I asked Ms Britnell why she didn’t strike at the heart of the matter and set up a meeting between the Opposition Leader and the Lyndoch chair?

Mr Guy could have asked Ms Cassidy directly:

Why is Lyndoch Living ignoring the community?

What are you doing about it?

Ms Britnell said she felt it was more important for Mr Guy to hear firsthand from the community.

“The meeting was constructive and feedback I have received from those who attended has been very positive,” she said.

“There will always be differing opinions on what the best course of action is on any given issue at any given time. If I got it wrong on this occasion, I accept that.

“However, the community can be assured that my focus will remain the same – to ensure we have the confidence and assurance the many issues that have been raised are being properly addressed.”

Ms Britnell reiterated that she didn’t “have confidence that the board is doing enough to address the concerns about transparency and workplace culture”.

“Warrnambool and wider south-west community want Lyndoch Living to thrive: I will continue to do everything I can to ensure that happens,” she said.

It’s a fine sentiment, but for all of the heat and light around Lyndoch, nothing has changed.

Our local Liberal MP and the Opposition leader are being ignored.

And the endorsed candidate for Labor, former Warrnambool City Councillor Kylie Gaston, has not said a word about the Lyndoch crisis: not now, not ever.

Nobody has gone for the jugular and demanded the board be sacked, other than us: the community.

We have done it. We have stood up with our slingshot against the Goliath and demanded the board go….and take the CEO with them.

We can see the root of this problem, where it started, and how to fix it.

This is why I continue to poke, prod, probe and challenge those with the power to act, because the community is doing its part – we are working hard – and we will not give up.

[The online petition runs until the end of August. https://tinyurl.com/3nwac5nc]