Former employees of the Narang Bir-rong Aboriginal Corporation have alleged misconduct against the organisation's chief executive and workplace culture, Nine-Fairfax has reported.
Former staff members told the Sydney Morning Herald the NBAC chief executive Heidi Bradshaw presided over an environment that was "vulgar" and "toxic".
The organisation, which cares for Indigenous children removed from their homes, has lost dozens of staff allegedly due to the "toxic" workplace.
The Herald reports that the charity, which received nearly $9.5 million in New South Wales government grants in 2023-24, had three of its seven board members resign last May over concerns about the organisation's operations as staff alleged they have developed psychological injuries from working there.
The organisation says the allegations are unfounded.
NBAC called the board's allegations unfounded.
The Nine-Fairfax papers also report former staff, a former carer and a former board member alleged the organisation had a "toxic" culture where executives engaged in inappropriate conduct, including sexualised behaviour and sexual relationships with staff, with frequent staff parties involving heavy drinking.
Ms Bradshaw also serves on the Leukaemia Foundation's board of directors, is a member of the Australian Institute of Company Directors, and previously served on the boards of the Association of Children's Welfare Agencies and the Financial Legal Rights Centre. In 2021, she was a finalist in the Westfield Hero Awards.
The NBAC board, speaking on behalf of the chief executive, denied the allegations.
"All matters raised have been thoroughly investigated and have either been found to have no basis or have been resolved to the board's satisfaction," the board said in a statement to the Sydney Morning Herald.
"We have sought, and will continue to seek, appropriate advice, to engage with relevant authorities, and take steps to ensure the organisation operates with integrity and accountability."
A spokesperson from the New South Wales Department of Communities and Justice, which oversees out-of-home care, told the Herald it "takes seriously and reviews all complaints received regarding contracted out-of-home care providers".