Community organisation Inanna Inc has folded, one week after its board and chief executive suddenly resigned.
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More than 50 staff and about 200 clients have been affected by the closure, announced publicly by housing and community services minister Yvette Berry last Wednesday.
Staff were told of the imminent closure on Wednesday morning.
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The organisation will be wrapped up by September 30 with expressions of interest to take over Inanna's clients and programs to open soon.
An interim manager was appointed to the troubled community housing, disability and mental health service last week after problems with its financial management and governance emerged.
Ms Berry said staff would continue to be paid while the organisation was still running.
"The statutory manager's role is to ensure the clients of Inanna continue to be provided with support services, that the staff of Inanna continue to be supported in their role in being able to provide support to clients and that the staff continue to be paid in this process where the statutory manager will then transfer the business of Inanna over to other community sector organisations in the ACT following an expression of interest process," she said.
"The Community Services Directorate has provided personal counselling services to all their employees. We'll also be providing support for future employment opportunities, we've asked the sector to consider employing where they can, so we can ensure that their programs continue to be delivered by the same staff and there's that continuity of support for Inanna."
The extent of its struggles are not yet clear but an ACT Policing spokeswoman confirmed they had received a referral in relation to Inanna and were currently assessing whether they would investigate.
"The extent is big enough that unfortunately Inanna won't be able to operate any longer," Ms Berry said.
Inanna managed more than 50 properties and Ms Berry said an investigation into its assets would take place after it finished operating on September 30.
"A lot of the housing is head-leased by Inanna from the ACT government so all of those will come back to the ACT government and they'll be transferred along with the service provision to other community service organisations," she said.
The closure of Inanna comes as the ACT government prepares to go into caretaker mode.
ACT Council of Social Service director Susan Helyer will advise the Community Services Directorate during the caretaker period as "the scope for ministerial decisions will be limited", Ms Berry said.
Ms Helyer said all efforts were being made to ensure a continuity of service to Inanna's clients.
Ms Berry said there had been broad support across the community services sector for those affected by Inanna's closure.
"The organisations across the ACT have been very supportive and have offered support and also offered to take over different parts of the different services Inanna has," Ms Berry said.
"We hope the community can respect the sensitivity around this for the clients and the staff who are still working with Inanna and we'll try and get through this process with as little disruption as possible making sure the client services continue. I also want to acknowledge the sector's support during this difficult time for Inanna and it's employees and clients."
