The board chair of Brindabella Christian College has blamed "negative media communication" from a union and the ACT government for derailing a refinancing deal it was relying on to pay superannuation and tax debts.
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In an email to staff on Sunday evening, Greg Zwagjenberg said the "actions of a few individuals driven by their own ulterior motives" had caused the refinancing deal to fall through.
"The combined [Independent Education Union] and ACT Government's negative media communications then derailed the refinancing we had finalised and were about to be paid out on last week, which in turn would have fully paid out the existing [Australian Taxation Office] payment arrangement and also allowed us to move forward with fortnightly payments of superannuation," Mr Zwagjenberg said.
Mr Zwagjenberg said the school was now "seeking alternative arrangements" for financing.
"We will keep you advised as to our progress over the next fortnight, and appreciate your efforts in making Brindabella all it can be despite all of this," he said.
"No doubt should those parties concerned continue to disrupt our efforts we will deal with this as and when it occurs."
The Independent Education Union filed a dispute in the Fair Work Commission after the school failed to pay superannuation on time since March 2023.
Staff were paid some of their super entitlements, however the quarterly instalment due on April 28 has not yet been paid to staff super accounts.
Mr Zwagjenberg said in the email the school was "blindsided" because the ACT government had not directly communicated with the school before comments were made in the media.
He said the union lied to its members because the decision to move to fortnightly payment of superannuation was a decision of the board and executive of the school which had "absolutely nothing to do with the IEU."
Mr Zwagjenberg and the board were contacted but did not respond to questions by deadline.
![Brindabella Christian College board chair said negative comments in the media about unpaid superannuation had caused a refinancing deal to fall through. Picture by Keegan Carroll Brindabella Christian College board chair said negative comments in the media about unpaid superannuation had caused a refinancing deal to fall through. Picture by Keegan Carroll](/images/transform/v1/crop/frm/33pRA5ArzT57tWtt8VHHenS/f1e67fde-a8b2-40cb-ae5f-796a747a6126.jpg/r0_522_5000_3333_w1200_h678_fmax.jpg)
Union calls out 'inflammatory email'
The Independent Education Union NSW/ACT branch deputy secretary David Towson said the union took issue with the school management's "inflammatory email to staff about its failure to pay their superannuation entitlements."
"It's regrettable that Brindabella's chairman is trying to shift blame onto the union and the ACT government. It is the school management's responsibility to ensure super for all staff is paid correctly and on time," Mr Towson said.
"That this issue has been dragging on for more than a year is disheartening for our members and all staff at the school.
"The one point the IEU agrees with in the chairman's email to staff is that Brindabella has 'excellent committed staff who deserve better'."
The union wrote to members employed by the school on Monday evening refuting some of the claims Mr Zwagjenberg made and giving advice to members who "feel in any way threatened by their employer in relation to their membership in the IEU."
"Freedom of Association is a fundamental right under Australian law and discrimination against union members is expressly forbidden and is regarded as adverse action under the Fair Work Act," the letter to union members said.
'A risk factor of insolvency'
The registrar for non-government schools Sean Moysey said school proprietors were required to comply with territory and Commonwealth laws, including superannuation and tax laws.
"Proprietors are obliged to inform the Registrar of any notices from the ATO or other regulators for non-compliance with Commonwealth laws. The Registrar and BCEL have communicated about these issues," Mr Moysey said.
"Non-payment of tax and superannuation is a risk factor of insolvency.
"Consequently, it is a serious issue in relation to a proprietor's and Board members' obligations under Chapter 4 of the Education Act 2004 to ensure a school remains solvent."
The registrar said the matter was under review and the proprietor would be afforded natural justice.
"Lenders engage in their own due diligence when assessing financing applications," Mr Moysey said.
The school amassed a $5 million tax debt by the end of 2022 because of unpaid pay-as-you-go withholding tax. It committed to repaying the debt to the tax office in monthly instalments of $130,000.
The charity which operates the school, Brindabella Christian Education Limited, was found by the federal Education Minister to be not fit and proper to run a non-government school.
The school appealed this decision in the Administrative Appeals Tribunal last year and agreed to a list of conditions relating to financial management and governance. One of the conditions was that superannuation was to be paid in full and on time to all staff.