Bedford Saved from Administration by $15 Million Government Lifeline
South Australian government intervenes to secure disability services provider
Disability employment organisation Bedford will continue operations following a crucial $15 million financial injection from the South Australian government, averting a looming administration deadline.
Government Steps In
The eleventh-hour intervention by the state government has provided a vital lifeline, preventing Bedford from entering voluntary administration on Sunday. Premier Peter Malinauskas confirmed a comprehensive rescue plan was developed to “stave-off” the organisation’s collapse.
The support package comprises a $15 million loan, with the state government acquiring one of Bedford’s supported accommodation sites, valued at approximately $12 million. Bedford operates 22 sites across Adelaide and regional South Australia, employing over 800 staff and supporting 1,400 individuals with disabilities.
“It was not an acceptable proposition from the South Australian government’s perspective that Bedford would go into administration this morning. Had Bedford gone into administration this morning, it would have been done in an unplanned way without any contingencies in place for the South Australians we care about most.”
—Peter Malinauskas, Premier of South Australia
In a significant management change, Bedford’s chief executive officer, Myron Mann, has resigned. Premier Malinauskas stated that a change in leadership was deemed necessary to ensure Bedford’s secure future.
Restructuring and Oversight
The government has appointed advisory and restructuring firm McGrathNicol to manage the business’s reform process. The acquired site, Balyana in Clapham, provides supported accommodation for 40 residents and its transfer secures their housing while addressing the facility’s approaching end-of-life status.
“But had we not entered into this rescue package and this intervention, those residents would have woken up tomorrow without any security of their future whatsoever.”
—Peter Malinauskas, Premier of South Australia
Bruce Carter, chair of ASC and the state government’s steel taskforce, has joined Bedford’s board as an independent observer, enhancing oversight of the organisation’s governance.
Bedford chair Janet Miller apologised for the recent uncertainty experienced by clients, families, and staff, expressing relief and gratitude for the government’s intervention.
Loan Conditions and Federal Support
Treasurer Stephen Mullighan detailed that the $15 million loan is essential for immediate cash flow and to address Bedford’s various financial obligations, ensuring continued operations. The loan structure, involving the transfer of the Balyana site, provides taxpayer recourse.
Funds will not be released as a single sum; McGrathNicol will assess expenditures, with incremental approvals from the state government required for fund disbursement. This structured approach aims to ensure fiscal responsibility during the recovery phase.
The state government’s intervention is seen as providing crucial time for the federal government to develop long-term strategies for Bedford. Federal Health Minister Mark Butler applauded the state’s action, acknowledging the “depth of the financial crisis” and confirming ongoing Commonwealth funding and discussions.
The state’s support, according to Premier Malinauskas, “certainly buys weeks” and allows for contingency planning and a smooth transition if Bedford’s financial recovery proves unfeasible, safeguarding the interests of its employees and clients.
