From “exemplary” to the arrest court

It is an interesting case study to consider how someone can go from being considered an “exemplary” employee to appearing in the Brisbane Magistrates Arrest Court. Considering this all began two years ago it is appropriate to take a short walk over the key timeline events.

On the 15th September 2017 the Brisbane Times published an article titled “Somerville House donors warned of data breach”. The article stated: “Recipients were told the Foundation had engaged law firm Brown Wright Stein and would pursue “whatever legal remedies are available to protect this information” if the staffer and his new employer could not guarantee the data had been destroyed.” The staff member was not named in the article and the Somerville community was left wondering.

On 10th October 2017 the Presbyterian and Methodist Schools Association (PMSA) issued, what would soon be one of many “communiques”; an email announcing Principal Flo Kearney had informed them she was resigning and would leave the school at the end of 2017. In the email the PMSA stated “Mrs Kearney will leave with our sincere gratitude and with our best wishes. She has provided strong leadership and vision, enabling Somerville House to enhance its reputation for providing the finest opportunities for girls’ and pre-prep education. Mrs Kearney has led Somerville House to continue on its exemplary academic path while also championing excellence in sporting, cultural and social pursuits. Her tenure has been one of distinction, energy and achievement”.

The Courier Mail then published an article on 12th October 2017 stating the PMSA had been sent legal letters from the Somerville House Foundation and “in a bizarre twist, an internal IT audit conducted by Somerville House Council has uncovered text messages between two PMSA officials in which they discuss having “covert” meetings in a nude sauna at a Korean bathhouse to catch up for what is described in the messages as “secret men’s business””. The same article stated the “Foundation ordered an audit which last week revealed the “unauthorised retrieval and removal” of more than 10,000 files in what law firm Brown Wright Stein believes is a breach of the privacy act. Thousands of files from Lifeline and TAFE Queensland – who are yet to be notified of the data transfer – were also discovered. Legal advice sent to the PMSA by law firm Brown Wright Stein suggests possible breaches of the privacy act, fiduciary duties, and corporate governance. But the PMSA has ruled out any security risk and cleared PMSA executive manager Rick Hiley, who admitted to downloading the files, of any wrongdoing and declared the files have since been deleted. In a shock move, Somerville House principal Flo Kearney who was overseeing the investigations into the security breach sensationally resigned on Tuesday. Mrs Kearney is the latest in a string of school Principals and Board Members to resign after airing concerns about PMSA’s corporate governance. Uniting Church Reverend Murray Fysh, UQ Dean of Law Professor Sarah Derrington and Senior Law lecturer Dr Sarah Kelly all quit the Somerville House School Council while BBC’s headmaster Graeme McDonald and deputy headmaster Kyle Thompson depart their roles at the end of the year”.

The article of 12th October 2017 was the first time the school community was able to make sense of what must have occurred. Could it possibly be that Principal Kearney had followed an appropriate Human Resources process in relation to the data breach, dealt with it with the support of the School Council Chair Reverend Fysh and was then essentially forced to resign? The Somerville community sensed injustice and the tarnishing of the school motto Honour before Honours. Not only that but this incensed the other PMSA school communities who, like Somerville on numerous occasions in their history, had dealt with significant issues at the hands of the PMSA. The community of parents, friends and old girls and boys of the PMSA schools had had enough. The PMSA seems to forget the majority of the community have received a great education from one of these schools and then proceeded to forge successful careers. There is a depth of experience in matters of this kind, so it was quite plain to see, even from the limited information, that the Principal and Reverend Fysh had followed due process and, it appeared, appropriately terminated Rick Hiley’s employment. Even if this was not for the data breach, we would think there would be a case under the Code of Conduct regarding nude bathhouse meetings and collusion. Yet what followed was the complete opposite. I know this may be tedious but let’s continue our timeline of events.

Late on 12th October 2017 another Courier Mail article reported “Inspector McCall, who was awarded the Australian Police Medal for distinguished service in June, resigned his position after 17 years on the PMSA in August. A senior church figure, who spoke on condition of anonymity, condemned the resignation of Mrs Kearney as “worse than an injustice”. “The data breach has outraged some of the state’s wealthiest and most private individuals. The PMSA ... has to go,” she said. Former BBC Foundation chair Andrew Macarthur, who resigned from the role last month, threw his support behind Mrs Kearney. “I think it is a disgrace, it’s very frustrating the PMSA is supposed to be running this multimillion-dollar school business when it is so dysfunctional,’’ the agribusiness boss said. Ex-Ergon Energy Chair Mal Hall-Brown, a former PMSA and Clayfield College Council member, said the culture of the PMSA was highly irregular and the integrity of the four schools was paramount. Somerville House Foundation chair Virginia Buttula last night said she had been inundated with calls from concerned parents and vowed to support the principal. “Mrs Kearney has done nothing wrong and has acted with integrity and strength of character under very adverse conditions,’’ she said. “I’m appalled by this security breach, the context of those text messages and the lack of inaction of the PMSA.’’ PMSA spokesman Michael Crutcher refused to comment”.

13th October 2017 Courier Mail article included details of a number of lewd text messages between Inspector McCall (Chair of the PMSA Council at the time) and Rick Hiley (Business Manager at Somerville House at the time). The article further stated “Somerville House Foundation director Morgan Parker said all those involved in a student’s education were expected to “consistently act with the highest degree of professionalism and integrity. It is a reality that sometimes crises will occur, this is the nature of things. What defines schools and those who govern them is how they respond to such events. Unquestionably today’s Courier-Mail article has uncovered a significant crisis within the PMSA. Parents and all those who care about ethical behaviour in education now eagerly await commensurate remedial action from the Presbyterian and Uniting Churches.”

Now we could go on and on quoting the numerous articles that were written. Each providing more and more information as people came forward. This was usually anonymously to the journalist due to the fear of reprisals from the PMSA either against them personally or their children. Some people believed this was an overreaction, but you only had to speak to a handful of people at the time to find someone who had either received a threatening letter from the PMSA’s lawyers or had received carefully worded “suggestions” of reprisals from PMSA employees or representatives such as the PMSA “Consultant” fondly known as Cowboy Dave. As Beyond PMSA gained traction these stories were found to be considered the PMSA standard modus operandi as experienced by many over several decades. Perhaps there is a handbook that is provided to all new PMSA Councillors/Directors when they begin their role.

Hundreds and hundreds of complaints were made to both the Uniting and Presbyterian Churches and regulatory bodies, but nobody was willing to act. You really have to wonder how the churches think they will increase their congregations when they continue to turn a blind eye to injustice whether it be child protection issues or nude spa meetings with key figures at church run schools. Beyond PMSA’s support swelled to well over 4,000 with strong turn outs at the two protests and each town hall meeting. Despite assertions of a cover-up and independent School Councillors openly stating they were refused access to the PMSA commissioned investigation report into Mr Hiley’s actions the churches did nothing.

24 October 2017 the Courier Mail reported that the “Crime and Corruption Commission has launched a preliminary inquiry into a formal complaint about the alleged cover-up of an IT security breach by a peak church group. The CCC is believed to be looking into claims of official misconduct and police misconduct. The Presbyterian and Methodist Schools Association (PMSA), run by church elders, has resisted calls for PMSA executive manager Rick Hiley, who admitted to the mass download of documents, to be axed over the scandal. Mr Hiley, who is on $350,000, and former PMSA chair Robert McCall, who is a top-ranking police officer, were exonerated of any wrongdoing by the PMSA”.

On the same day The Australian published an article which stated “Mr Hiley, who was cleared of any wrongdoing by the PMSA, is tipped to be appointed “chief operations officer” for the proposed new “PMSA Corporate” division that would take over many of the operations of the individual schools”.

It was around this time we heard Mrs Kearney and Communications Director Sarah Dreaver had been stood down and walked from the premises by PMSA Chair Greg Adsett with Rick Hiley and Cowboy Dave present. This event was followed by the resignation of all but one of the independent School Councillors along with a number of senior well-respected educators at Somerville House. Now that we have had a quick recap on what Rick Hiley was reported to have done let us now recap the PMSA’s response as it specifically relates to Mr Hiley.

On 27th October 2017 Greg Adsett, PMSA Chair, was interviewed on ABC Radio by Steve Austen. The following statements are those made by Greg Adsett from that segment when questioned about Rick Hiley.

Greg Adsett - “Steve there has been much media speculation around that issue. What I can tell you is we implemented an independent investigation which was rigorous and robust and cleared Mr Hiley of any breach or misuse of that data.”

Steve Austen – “So he had not stolen any data?”

Greg Adsett - “No”

Steve Austen – “His reputation has been impugned because someone did an audit of school equipment showing someone had invited him to a bathhouse meeting and this was inappropriate. Have you investigated that?”

Greg Adsett - “Steve we have and what I can say is the circumstances of that matter have been completely distorted in the media and there is no inappropriate standard of behaviour”.

Steve Austen – “So what you are telling me is someone is trying to smear this person and paint them out as doing the wrong thing whereas, the governing body feels and has investigated, and he has done nothing wrong”.

Greg Adsett – “Correct”.

Steve Austen – “The stories that have been in the Courier Mail newspaper appeared to be targeting Mr Hiley in particular, but the school management body has investigated fully, and that man has done absolutely nothing wrong?”

Greg Adsett – “That’s correct”

Steve Austen – “In your statement you say he was using it to work from home, the hard drive, is it correct to say that data/hard drive has all been returned to the school?”

Greg Adsett – “What is correct to say Steve is all that data has been deleted and destroyed”

Steve Austen – “And you have verified that?”

Greg Adsett – “We have verified that”

Steve Austen – “So there’s been no breach of any code of conduct or ethical guidelines or management rule of the school as far as your management body is concerned?”

Greg Adsett – “Correct and that was spelt out by the independent investigation”

Steve Adsett – “So someone has been misleading the groups demonstrating or not telling them the full story?”

Greg Adsett – “I’m here today to provide the other side and to say as we discussed Rick, Mr Rick Hiley, didn’t do anything inappropriately”.

Steve Austen – “You are the legal controlling body of these schools and you have investigated, and you have no concerns about the activity undertaken by Mr Hiley at all”.

Greg Adsett – “Correct”

The Courier Mail published an article titled “Insight: The scandal engulfing four private schools has cost careers and smeared reputations” on 28 October 2017. The article states “Yesterday, PMSA chairman Greg Adsett broke his silence to speak to Insight for the first time as the scandal engulfed both BBC and Clayfield College with claims of a string of high-profile resignations in similar circumstances. “We appreciate and understand the frustration of some parents. We apologise. It is tough on staff, students and the wider community, and we are working through it,’’ he says. Adsett says he is opposed to an independent investigation, insisting there was no privacy breach or data theft, and that Hiley has his full support”.

In a media release issued by the PMSA on 2 November 2017 Mr Adsett is quoted as saying “the PMSA has and will continue to focus on the best interest of our more than 5,000 students, over 1000 staff and of course, our parents, school supporters and alumni”.

In a Courier Mail article on 5th November 2017 the owner of the Korean Spa advised they had changed their policy “it is Korean culture to be nude in a spa, but we’ve decided we are no longer comfortable with public nudity. They must now put on swimwear”. The article further stated “PMSA chairman Greg Adsett has tried to hose down public outcry, saying it was a “PG-rated” experience. “Two individuals attended a remedial health spa, located at a reputable 4.5-star Best Western Hotel in Brisbane”, Mr Adsett said. He said there was no “inappropriate” behaviour and refused to sack Mr Hiley over his role in the deepening scandal. “Private dialogue referring to a scene from the PG-rated move Eddie the Eagle was exchanged in a small number of inoffensive text messages,” he said”.

On 7th November 2017 the Courier Mail stated Mr Adsett “refused to sack any executive in the deepening fiasco” and “the PMSA had no plans to stand down, release any secret documents, face an independent inquiry, or relent to the demands for the entire council to be disbanded”.

After four months in the $350,000 role at the PMSA the Courier Mail reported on 24th February 2018 that “The executive manager of the body which governs four elite private schools has negotiated a six-figure payout to fall on his sword following a long-running scandal….including a golden handshake and a confidentiality agreement. But, when asked about Mr Hiley’s resignation and out-of-court settlement, the PMSA yesterday said it was a matter of “privacy”. “we will not be discussing publicly any issues relating to previous staff members,” PMSA chairman Greg Adsett said”. The article further stated “The PMSA’s support of Mr Hiley has been in stark contrast to the treatment of former Somerville House principal Flo Kearney and communications director Sarah Dreaver, who were both forced to resign with undisclosed settlement payouts as well as having to sign legal confidentiality agreements. The were exonerated of any wrongdoing by an internal inquiry after being marched off school grounds and their computers and phones seized. The PMSA has told them they will not get a public apology.”

Over and over again since the first story broke in September 2017 the PMSA has consistently not only defended Rick Hiley but stated he was an “exemplary” employee. He had done absolutely nothing wrong. They had investigated and could absolutely confirm he was essentially above reproach. When we say the “PMSA” who do we mean? We are referring to the members of the PMSA School Council at the time, namely: Greg Adsett, Anne Bennett, Helen Murray, Jim Demack, Greg Skelton, Jacqueline McPherson and Kevin Standish. These are the individuals who collectively made the decision to treat Principal Kearney how they did, to force the resignation of both her and Sarah Dreaver, to pay them out in exchange for the signing of a confidentiality agreement and the promotion of Rick Hiley and subsequent payout to him. It should be noted that this is just the highlights surrounding one event and we have not included the downstream costs and impacts nor other examples such as the Bellamy “wangagate” saga that has also cost all fee-paying parents. We should also note the PMSA finally issued an apology to Mrs Kearney in 2019 along with a purported further payout.

This brings us to the 29th October 2019 where the Courier Mail reported “The former executive manager of the Presbyterian and Methodist Schools Association has been charged with fraud for allegedly downloading confidential school data. Rick Hiley appeared in the Brisbane Magistrates Court today, making his first court appearance on the fraud charge. Hiley, an accountant from The Gap, is charged with dishonestly obtaining computer data records from Somerville House Foundation, on May 26, 2017. Hiley, who was represented by a lawyer, was granted bail and the case was adjourned until November 18. He was not required to enter a plea”.

After two years of being told Rick Hiley had done nothing wrong the Queensland Police Service found there was sufficient evidence to level a charge of fraud with a subsequent appearance in the Brisbane Magistrate’s arrest court. This has reinvigorated the consistent demands of Beyond PMSA supporters for the 2017 PMSA Councillors/Directors to resign or be removed. As reported in the Courier Mail on 6th November 2019 “Parents and alumni are demanding the axing of the “old guard” of the strife-torn Presbyterian and Methodist Schools Association board after its hand-picked former executive manager last week faced court charged with fraud. Beyond PMSA said the court process must be allowed to occur and Mr Hiley must be given his day in court to defend them. “The police didn’t have to lay charges. They did so because they consider that there is a case to answer. But our point is that the basis for the PMSA’s very definitive conclusion that there was no wrongdoing must be called into question and those responsible for managing that process and the shambolic consequences that followed must finally be called upon to take personal responsibility.””

Of the 2017 PMSA Councillors the following still remain as PMSA Directors: Greg Adsett, Helen Murray, Jim Demack, Greg Skelton. Jim Demack continues to hold the position of Chair of Somerville House. One can only assume what may be included in the evidence for the Hiley case which will be made public at an expected trial in the new year. If these individuals are not personally concerned, they certainly should be! The only way to shield the schools from the impact of this is to step down. Greg, Helen, Jim and Greg have had two years to do the right thing and they have failed to do so thus far. This is in spite of consistent rhetoric about having the “schools’ best interests” as their focus. Their presence and involvement continue to leave an enormous stain on these four marvellous schools. They are not only doing the wrong thing by each of the schools but also the two churches they represent. Who can hold any respect for the churches, let alone the PMSA, with this demonstration of what can only be assumed to be self-serving ego-driven decision-making; or perhaps it comes down to money and fee-discounts for some?

Perhaps the book of James will hold more weight as it states: “So whoever knows the right thing to do and fails to do it, for him it is sin”.

We are not going away.

Thank you for your support.

Beyond PMSA