An extraordinary meeting of Kiama Council, held in confidential mode, has authorised the CEO Jane Stroud to begin the process of selling the whole of its Blue Haven aged care business and assets.

The decision follows the tabling of a forensic audit report that confirmed that Council was no longer financially viable without immediate and significant action.

The sale of Blue Haven was proposed ‘for the purposes of sustaining the core role of the local government authority’.

Mayor Neil Reilly says the organisation is at a historic crossroads and this situation requires courageous and decisive action.

“We have made brave decisions before and we have been enormously proud of being able to deliver aged care in our region for the past 40 years.

“But it’s time for change. For us to refocus on being a local government service at our core, we need to allow Blue Haven to have the dedicated, direct leadership and attention that any complex aged care businesses deserves. We need to do that so our past good work can continue to live on.”

CEO Jane Stroud says, “As CEO, I’ve laid out a proposed way forward, in the face of an unsustainable environment where Council operates a complex aged care business, side by side with its core local government responsibilities. This environment is negatively affecting all aspects of the Council, and the Blue Haven businesses, and cannot continue to be supported financially without significant risk to our liquidity and solvency.

“It was my duty to bring that to Council’s attention and recommend sensible, albeit difficult pathways forward.”

The resolution stressed that the sale, to be handled by leading commercial property agents McVay Real Estate, will have conditions to ensure Blue Haven continues to provide aged care services to a high standard.

Both the Bonaira and Terralong St properties will be sold, along with the entirety of Council's aged care operations

Mayor Reilly wants to reassure the community that the high standard in quality of care for Blue Haven residents would be protected and continue uninterrupted, regardless of any future change of ownership.

“The well-being and care of Blue Haven residents and their families remains the highest priority and we will ensure that care is not compromised as we work through the various stages leading to the sale,” he says.

“The sale process will take time and we encourage the Blue Haven community, along with Council and Blue Haven staff and all residents of our local government area, to work with us as we navigate the waters ahead.”

An interim Chief Operating Officer has been appointed to head Blue Haven Illawarra to carry on identified improvement strategies. Joe Gaudiosi, has more than 20 years’ experience in CEO and CFO roles with Uniting Care, IRT and Multicultural Aged Care Illawarra.

The extent of Council’s cash flow problem was further emphasised by the need to submit a strategic liquidity plan to the Audit Office of the Office of Local Government, including accelerating the sale of parcels of Council land already identified in the Strategic Improvement Plan (Strategic Improvement Plan has full support).

At the same meeting, Council decided to release the Forensic Audit report to the public after further consultation with lawyers. Given the issues involved, this is expected to be some time before it is available.