Victorian NDIS provider collapse intensifies scrutiny of banned Perth operator's directors

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Victorian NDIS provider collapse

Highlights

Adachi Disability Services' directors, banned in February 2024, allegedly used company funds to secretly acquire Victoria-based Daily Living Disability Services despite $6.8 million in accumulated debt and $2.3 million in director loans.
Daily Living Disability Services collapsed overnight in March 2026, leaving staff and the Australian Taxation Office owed an estimated $1.2 million, and disrupting NDIS support for Gippsland families.
The NDIS Quality and Safeguards Commission investigation intensifies scrutiny on regulatory oversight failures, as advocates demand stronger controls to prevent provider mismanagement and client disruption.

Liquidation findings and acquisition trail

As reported by ABC News, the NDIS Quality and Safeguards Commission is investigating after the directors of Perth-based Adachi Disability Services allegedly bought Daily Living Disability Services in Victoria's Latrobe Valley despite Adachi being banned in February 2024. No charges have been laid.

Liquidator Andrew Yeo says Adachi accumulated about $6.8 million in debt, and his report alleges its directors, Adrian and Chiedza Mtungwazi, used company funds for personal spending, including a Ferrari, overseas property and investment in a Zimbabwe football club called Adachi FC. The report also says the pair took out "director loans" of $2.3 million.

The same report says Adachi funds were used to purchase Daily Living in Traralgon and that the directors allegedly sought to keep their ownership hidden from regulatory scrutiny. Daily Living later collapses overnight in March 2026, owing staff and the Australian Taxation Office an estimated $1.2 million.

Impact on Gippsland care and NDIS oversight

Daily Living's liquidation leaves Gippsland families scrambling to replace support services, while all staff lose their jobs immediately. The shutdown affects vulnerable clients in the region who rely on continuity of care through the NDIS.

Among those affected is Peter Earnshaw, whose non-verbal autistic son depended on Daily Living's services. He says the directors should not have been able to buy another NDIS business after Adachi was banned, and raises concerns that warning signs should have been identified earlier by government oversight.

The case is adding to broader questions about regulatory checks across the NDIS provider market. Advocates say stronger controls are needed to prevent mismanagement and protect clients from disruption when operators fail.

Our earlier article covered a Court of Appeal ruling in Malaysia that a lawyer with commission-partner status can still be treated as a partner under the Partnership Act 1961 and held personally liable for a firm’s unpaid obligations. The decision overturned lower-court findings and signalled wider implications for how responsibility for misappropriated funds and outstanding debts may attach to individuals presented as partners within professional firms.

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