EXCLUSIVE: 100 staff unpaid: inside the $3.6m collapse of regional disability provider
In a report to creditors, liquidator Jason Porter alleges director Kalkidan Mwadaani may have committed offences including "illegal phoenix" activity, stating her actions appeared to be "intentionally dishonest and/or reckless" amid the business' $3.6m collapse.
A statutory report obtained by the Daily Liberal and Central Western Daily reveals liquidator Jason Porter believes the company was insolvent as far back as June 2023.
The statutory report alleges Ms Mwadaani failed to act in good faith, failed to act with care and diligence, failed to keep financial records, failed to disclose property, engaging in fraudulent activities and improperly used her position - conduct Mr Porter flags as a potential criminal offence.
In his statutory report to creditors, Mr Porter stated he would be reporting these matters to the Australian Securities and Investments Committee (ASIC).
"The director of the company has a duty to prevent the company from trading whilst insolvent," Mr Porter said.
"My preliminary investigations reveal the estimated date of insolvency is from at least June 30, 2023."
Ms Mwadaani was contacted for comment around the alleged criminal activity but has not replied. She previously told this masthead she blamed "non-payment from participants" for the failure of the Dubbo-based business.
This matter is of significant concern.
- Liquidator Jason Porter
Ms Mwadaani was declared bankrupt in the Federal Court on December 9, 2025, effectively ending any chance the liquidator had to recover funds from her personally.
With $1.7 million owing to the Australian Taxation Office (ATO), it was the Deputy Commissioner of Taxation that pursued the bankruptcy.
The court noted the "act of bankruptcy" occurred on June 17, 2025. David Ian Mansfield of Deloitte was appointed as her trustee and control of her personal assets has now passed to him.
The liquidator's report states that since June 30, 2023 the balance sheet was insolvent, the business was experiencing continuing trading losses and was unable to meet creditors' payment terms from this time and for all subsequent periods.
The liquidator's report then shows the business was sold to Sean Mwadaani, Ms Mwadaani's husband, for $7400 in July 2025, before officially ceasing trading in August 2025.
Ms Mwadaani was contacted for comment and did not answer why the business was sold to her husband.
The liquidator said his investigations into a potential insolvent trading claim had been hindered by limited access to records.
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