— No wrongdoing admitted
— “Investigation” remains secret
— Bosses leave with glowing references
— Accusations of “corporate cover-up”
FEATURE
It was one of the biggest scandals to hit a major charity in years. It involved the nation’s Treasurer of the day, Australia’s “most trusted charity” — and what was almost certainly a direct breach of the law.
Yet not a single person has been held publicly to account over the scandal that cast a dark shadow over Guide Dogs Victoria, in the biggest publicity disaster in its 65-year history.
In a major national scandal ahead of the 2022 federal election, Guide Dogs Victoria’s chief executive Karen Hayes appeared in political advertisements spruiking then Treasurer Josh Frydenberg for re-election.
It is illegal for charities to endorse politicians or political parties.
Hayes was “stood down” and Guide Dogs Victoria announced an “investigation” — saying it would “make no further comment during this process”.
Yet, in the more than two-and-a-half years since, the charity has made no comment about what the investigation found — or even who conducted it.
Guide Dogs Victoria — or anyone associated with the incident — has never apologised over the affair.
Further, analysis of all Guide Dogs Victoria’s annual reports, disclosures and public statements confirms that it has never admitted any wrongdoing occurred.
“Guide Dogs Victoria has never admitted any wrongdoing occurred”
The charity broke its long-standing silence late last month, with now CEO Nicky Long speaking exclusively with The Klaxon.
Yet serious questions remain.
The Klaxon asked Long whether any wrongdoing had occurred in the Frydenberg affair.
“Honestly, I’m not trying to be tricky, I can’t comment, I wasn’t here,” Long said.
“I can’t comment…as to why, how, what, it was long before my time.
“But I do know that they absolutely took the opportunity to improve a lot of things internally,” she said.
We asked whether Guide Dogs Victoria’s chair could tell us whether any wrongdoing had occurred.
“I don’t think (so), for my knowledge it’s deemed confidential,” Long said.
“It’s deemed confidential” — CEO Nicky Long
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The Klaxon’s December 28 report. Source: The Klaxon
Guide Dogs Victoria’s chair is David Cochrane, who was deputy chair at the time the scandal broke and has been a director of the charity since 2016
Hayes departed the charity, after nearly a decade as CEO and Iain Edwards stood down as chair after the affair broke.
Both Hayes and Edwards were lavished with glowing public statements from Guide Dogs Victoria as they departed.
Like all other parties involved — including Frydenberg — neither has admitted any wrongdoing, or that any wrongdoing in fact occurred.
Hayes, Frydenberg and Edwards have all repeatedly declined to comment when contacted by The Klaxon.
When Hayes’ “resignation” was announced, six weeks after the scandal broke, the accompanying media statement made no mention of the scandal. Or of any investigation.
Hayes had made “an incredible contribution to Guide Dogs Victoria” and “leaves a great legacy of modernising the organisation”, wrote Edwards, who then remained chair.
“On behalf of the Board, I want to thank Karen for her innovation, passion and commitment…her dedication and enthusiasm can’t be underestimated.
“We are incredibly grateful for her unrelenting desire to help the Guide Dogs Community,” wrote Edwards.
“Karen has made a long and lasting impact in our community, and we wish her all the best in the future”.
A flyer distributed in Kooyong before the 2022 federal election. Source: Josh Frydenberg
Two days after Hayes’ resignation was announced, it was announced Edwards was departing as chair.
Again, no mention was made of the scandal or any investigation.
Edwards had been on the board of Guide Dogs Victoria since 2011 and had spent several years as chair.
“We extend our deepest thanks and sincere gratitude to Iain Edwards, who served on the Guide Dogs Victoria Board
of Directors from June 2011 to June 2022,” said the charity’s annual report after he left the organisation.
“Thank you for being an excellent role model to all that have met you.”
Searches show Hayes remains active as a director of not-for-profits.
Her LinkedIn profile states continued as a director of Multiple Sclerosis Limited (a position she held from 2013 until last September) and as a director of the Melbourne International Comedy Festival (which she held from 2013 until last August).
Hayes is now a director of the Adelaide Fringe Foundation (appointed in August 2023, and she was in September appointed a director of SAHMRI, “South Australia’s flagship not-for-profit health and medical research institute”, her profile states.
Hayes has never spoken publicly about the scandal that saw her depart Guide Dogs Victoria.
The reverse side of the flyer – Frydenberg’s political “authorisation” highlighted above. Source: Josh Frydenberg
“As all Chairs and Boards do…”
The Klaxon has put scores of questions to Guide Dogs Victoria since the scandal broke — most unanswered.
When pressed on the outcome of the investigation into the Frydenberg scandal we have previously been pointed to the charity’s 2022-23 annual reporting.
Inside one of its three annual reporting documents, which span 59 pages, appears a handful of sentences from chair Cochrane.
No reference is made to the Frydenberg scandal, let alone any investigation — or any ensuing accountability.
In the statement Cochrane says the charity had an “already strong governance framework” which it had “reviewed and improved”.
“As all Chairs and Boards do, we acknowledge the responsibility we have to create, maintain, refine and adapt a strong governance framework”.
“This meant tightening our governance processes,” writes Cochrane.
“There are new and enhanced policies on…how the Board, and employees can express their support towards individuals and organisations”.
“Tighter arrangements will be introduced around branding, grants and donations, media and social media arrangements and government interactions”.
No specifics are provided — or any context as to why any changes were required.
There is no mention of any wrongdoing having occurred.
Cochrane continues in the statement: “Following the resignation of our CEO in May we were extremely grateful that our Chair, Iain Edwards, stepped up as Interim CEO”.
“We thank Iain for his tireless work in furthering our values and his commitment to our community”.
“We thank Iain for his tireless work in furthering our values” — Chair David Cochrane
David Cochrane’s statement in the 2022-23 annual reporting. Source: Guide Dogs Victoria
“The measure of this man”
The Frydenberg scandal erupted on April 19, 2022, weeks out from the May federal election.
Hayes had appeared on flyers distributed in the inner-Melbourne electorate of Kooyong — where Guide Dogs Victoria is located — as well as in paid social media advertisements and a video, all spruiking Frydenberg,
The advertisements were all politically legally “endorsed” by Frydenberg.
“Why I am supporting Josh Frydenberg”, says Hayes in the flyer, as “Chief Executive Officer, Guide Dogs Victoria”.
“I could not have asked for a better local Federal Member for Kooyong than Josh Frydenberg.
“Time and time again, Josh has shown his genuine care for Guide Dogs Victoria.
“In our darkest moments [during Covid-19] Josh was there providing support.
“It is through these unseen actions and countless more that show me the measure of this man,” Hayes is quoted.
ABC reports on the Guide Dogs Victoria “investigation”. Source: ABC News
When the scandal broke, Guide Dogs Victoria’s board published a statement.
It had “been made aware” of “the distribution of political material” which “includes comments from out CEO who appears to endorse a local candidate in the upcoming federal election”.
“The board had no prior knowledge of the distribution of this material and does not endorse it,” it stated.
“The board has launched an internal investigation and requested that this material be immediately removed from circulation.
“We will make no further comment during this process,” it said.
It hasn’t made any comment since.
When the scandal broke the media and public wanted to know what happened.
How was the board not aware its CEO was appearing in active advertisements, including in flyers distributed in the electorate, until the story broke in the media?
The questions only grew after the ABC revealed Hayes had appeared in a similar video spruiking Frydenberg ahead of the 2019 federal election.
All those same questions remain.
Hayes appears in a video spruiking Frydenberg before the 2019 federal election. Source: ABC
Speaking with Long late last month, The Klaxon suggested — echoing concerns of many members of the public — that Guide Dogs Victoria had engaged in a “classic corporate cover-up”.
“I think it’s more complicated than that,” Long said.
“When you’re talking individuals, it can be (complicated).
“I’m just taking it as face value that it’s confidential, what was investigated, what the outcomes were.
“It was long before my time, but I do know that they absolutely took the opportunity to improve a lot of things internally.
“Honesty, I don’t think it’s a corporate cover-up, there (were) a whole lot of things that are complicated,” Long said.
When asked whether Hayes had threatened legal action, Long responded: “Not that I’m aware”.
“When I started I put a line in the sand, with staff, with everyone, and said we are entering a new era,” Long said.
When asked whether Edwards’ departure as chair after the scandal broke was connected to the Frydenberg scandal, Long said: “No, not that I’m aware”.
Iain Edwards. Source: Guide Dogs Victoria
Edwards
Edwards’ departure from Guide Dogs Victoria took an unusual route.
It was announced that Edwards would “step down” from “his current role as Board Chair” for “a short period” and “take on the role of Interim CEO of Guide Dogs Victoria”.
“Iain will commence as Interim CEO on 20 June, and remain in the role for up to six months while a recruitment process is undertaken to appoint a new CEO,” the statement said.
“Board Director and Vice Chair, David Cochrane” would be “taking on the role of Acting Board Chair during this time”.
Edwards never returned to the board, and Cochrane remains chair.
More reports from The Klaxon:
2022:
April 20 — Karen from Kew & the Diamond Dogs
May 31 — Guide Dogs CEO “resigns”: major questions remain
June 11 — Taxpayers charged four times more for fewer services
June 23 — Spends more on fundraising than dogs
June 27 — Fundraising boss gave $87,000 to Liberal Party
Nov 20 — Guide Dogs Victoria caught lying to donors
Dec 5 — Guide Dogs executives exit
Dec 16 — Supplies lowest value of dogs on record
2023:
Jan 12 — Guide Dogs Victoria board warned of “politicisation” a decade ago
Apr 7 – Top dog departs after Klaxon expose
On January 13, 2023, it was announced Edwards was departing Guide Dogs Victoria.
The day before, The Klaxon revealed the Guide Dogs Victoria board — including Edwards personally — had been warned of Liberal Party “politicisation” of the charity back in 2013.
Apparently no action was taken.
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Frydenberg with Hayes on four seperate visits to Guide Dogs Victoria. (Clockwise from top left: June 2018; March 2016; Sep 6 2013; date unknown. Source: Josh Frydenberg/Wayback Machine
In the same January 13 announcement that Edwards was departing, Guide Dogs Victoria announced that Long had been appointed the new CEO.
The announcement appeared rushed.
Guide Dogs Victoria was “pleased to confirm” the appointment of Long, who would start in three months’ time.
Long was CEO of deafness charity Expression Australia.
That January 13 statement — the day after The Klaxon’s expose — was following “the announcement of her resignation (from Expression Australia) this afternoon”.
“Nicky will join GDV in mid-April once she has served her notice
period,” Guide Dogs Victoria said in the January 13 statement.
“Iain [Edwards] has decided not to nominate for reappointment to the GDV Board once Nicky joins as CEO and will instead take a break from formal duties,” it said.
On April 14 Edwards ended his role as Interim CEO and departed Guide Dogs Victoria.
The charity released a statement that day, titled “Farewell Iain Edwards, Interim CEO, Guide Dogs Victoria”.
“Guide Dogs Victoria will farewell Iain Edwards in his role as Interim CEO this Friday 14 April,” it states.
No mention is made of the scandal, or of any investigation.
“Iain has made an incredible contribution to Guide Dogs Victoria through his involvement the past 30 years — as a Client, donor, volunteer speaker, Puppy Raiser, board director and Chairperson and, most recently, as Interim CEO,” writes chair Cochrane writes in charity’s annual report a few months later.
At the time, The Klaxon asked Guide Dogs Victoria whether Edwards’ departure was related to the scandal.
The response, via external public relations spokesman Tim Lele, appeared inconsistent with the earlier statements that Edwards would “step down” from “his current role as Board Chair” for “a short period” to act as “interim CEO” for “a short period”.
“In compliance with Guide Dogs Victoria’s constitution, current employees or past employees of the company in the previous 12 months cannot hold a position on the Board,” the response said.
“As such, Iain will be unavailable for reappointment to the Board until April 2024, should he wish to nominate.”
He did not nominate.
Accountability
Late last month The Klaxon asked Long whether anyone had been “held accountable in any way” over the Frydenberg incident.
“I think everyone was accountable for the fact that it happened I have not witnessed or heard anything where people are saying they’re not accountable,” Long said.
“And the impact on the organisation has been huge.
“We’re a charity that is in a space of doing good for the community and I don’t think there’s anyone internally or even at a volunteer level that didn’t feel the ripple effects of what occurred,” she said.
It is undeniable that Guide Dogs Victoria has been impacted by the scandal, if only reputationally.
Likewise, that staff have been impacted by the fallout and community anger.
Yet no-one at the top of the organisation — those making the decisions — has ever been held publicly accountable, or even admitted any wrongdoing occurred.
“No-one at the top of the organisation has ever been held publicly accountable”
While Guide Dogs Victoria refused to answer questions from media, as previously revealed, behind-the-scenes it was spreading false claims.
The Klaxon’s November 2022 report. Source: The Klaxon
The Klaxon obtained copies of emails sent in response to donors contacting the charity raising serious concerns, following a string of exposes by this publication.
The emails, which contained multiple serious false and highly misleading claims (full details here) were sent by Evan Gordon, the “General Manager, Fundraising & Philanthropy” for Guide Dogs Victoria.
Evans has repeatedly declined to comment when contacted by The Klaxon.
He remains with the charity.
In the days before Christmas, Long interrupted her break to speak with The Klaxon. Initially we received an out-of-office email response.
“Thank you for your email. I am on Christmas Leave…Evan Gordon is acting in my absence,” it said.
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