Posted August 13, 2013 06:49:41
Muswellbrook Council says it terminated the services of a Lake Macquarie-based salary packaging company after becoming concerned some payments were not being made.
Both police and the Australian Securities and Investments Commission are investigating Newcastle Salary Packaging after complaints from the council about car leasing arrangements.
General manager Stephen McDonald says it appears three staff may be affected but the full extent will not be known until investigations are complete.
“There was issues in regards to the level of service they were providing whereby they weren’t getting statements in time,” he said.
“We were making inquiries in regards to whether payments were being made with the lease company.
“With the information we were being told from the leasing company, that didn’t reflect the information we were being told from Newcastle Salary Packaging.
“So we started to make some inquiries and we decided to terminate our services with Newcastle Salary Packaging.”
Mr McDonald says any salary packaging companies they use in future will have to meet strict criteria.
“There’s an investigation being undertaken at the moment by ASIC and police and until that investigation is complete we won’t know the extent of the problem,” he said.
“In regards to the companies we pick there are a number of companies that use Newcastle Salary Packaging.
“We are looking at another provider .
“Obviously we will be looking in regards to their qualifications.
“In regards to ASIC, their requirements and we will be doing some reference checks as well.”
The ABC has attempted to contact Newcastle Salary Packaging for comment.
Topics: local-government, consumer-finance, muswellbrook-2333, newcastle-2300