Owners of banned NDIS company allegedly funded Ferrari and football club

The directors of a banned NDIS business in Perth have allegedly been able to buy another NDIS provider in regional Victoria.

Both companies have gone into liquidation with significant debt, leaving regional clients without care and staff without jobs.

The NDIS Quality and Safeguards Commission is investigating and no charges have been laid.

The NDIS watchdog is investigating after the directors of a banned NDIS company that racked up a $6.8 million debt bought another NDIS business in Victoria's Latrobe Valley.

Perth-based NDIS operator Adachi Disability Services was banned in February 2024.

According to the liquidator's report, its directors allegedly used company funds to pay for a Ferrari, overseas property and fund a Zimbabwean football club called Adachi FC.

The liquidator's report revealed that despite the ban placed on Adachi, its directors Adrian and Chiedza Mtungwazi were able to purchase Daily Living Disability Services (Daily Living) in Traralgon using Adachi funds.

Daily Living collapsed overnight in March 2026, leaving its clients without care and owing its staff and the Australian Taxation Office an estimated $1.2 million.

The closure has left NDIS advocates questioning how the directors were able to purchase the company despite the ban on Adachi, and calling for more checks and balances in the scheme.

When Daily Living suddenly went into liquidation in March 2026, Gippsland families like Peter and Liam Earnshaw were completely blindsided.

Mr Earnshaw's non-verbal autistic son Liam relied on Daily Living services for five years, five days a week and overnight.

"It gave him something to look forward to every day," Mr Earnshaw said.

"He loved it, all of his friends were there."

Clients were left without care and all staff lost their jobs overnight.

As a single dad, Peter had to take two weeks off work to find alternative care for Liam, but finding another provider was difficult.

"Being in a small town, it's hard to find a provider that's a good fit," he said.

Mr Earnshaw said the directors should not have been able to buy another NDIS business if their original company was banned by the NDIS.

He said the government should have noticed the "multiple red flags" when the directors allegedly bought another business.

"There's no checks and balances," he said.

"So what they do, they open up under a different company name. It's just too easy."

In his report, liquidator Andrew Yeo from Pitcher Partners, said Adrian Mtungwazi and his wife Chiedza took out "director loans" of $2.3 million.

Mr Yeo alleged the couple used company money to buy assets that were "purely for the Directors personal use, including a Ferrari motor vehicle".

The liquidator found Adachi company funds were sent to overseas bank accounts in South Africa, the Philippines, United Kingdom and Zimbabwe.

Mr Yeo said his investigations indicated "Adrian may also have been providing funds to a Zimbabwe-based football club called 'Adachi FC'."

The report stated in 2021 the NDIS watchdog, the NDIS Quality and Safeguards Commission, was aware of alleged "regulatory issues" and alleged Adachi was "mismanaging client complaints".

In February 2024, the NDIS watchdog placed a banning order on the company, which Mr Yeo said in the report was due to compliance issues.

However in April 2024, the report revealed the directors used company funds to purchase an NDIS service provider in Traralgon, Victoria.

When the Mtungwazis bought Daily Living Disability Services, Mr Yeo said they purposefully wanted to avoid being listed on ASIC records.

Mr Yeo said the director of Daily Living was a former employee of Adachi and the Mtungwazis informed Mr Yeo that they held shares in the business for the Mtungwazis.

"[The Mtungwazis] informed me that the purchase of the business was purposefully structured in a way that neither Chiedza or Adrian would be appointed as a director or shareholder on the ASIC records," Mr Yeo said.

However, the liquidator's report detailed it was the intention for the Mtungwazis to be the "ultimate owners of the business".

When Daily Living suddenly went into liquidation in March 2026, a separate liquidator, Mervyn Kitay from firm Worrells, was appointed.

Mr Kitay said two companies were set up relating to Daily Living, with the same director of both.

The director of Daily Living is not accused of any wrongdoing.

He estimated the two companies related to Daily Living owed more than $920,000 to the ATO and $360,000 to staff in unpaid entitlements, including wages, superannuation and leave.

Liquidator's documents seen by the ABC claim some employees who worked at Daily Living are owed up to $54,000 each.

Mr Kitay said while the Mtungwazis did not hold an official position within Daily Living or the two related companies, "they held significant control over the business" and were "ultimately the beneficiaries" of the companies related to Daily Living.

"To protect the integrity of our investigations and the privacy of NDIS participants, we cannot comment further on active matters," an NDIS Quality and Safeguards Commission spokesperson said.

The ABC attempted to contact Adrian Mtungwazi for comment.

In his liquidator's report Mr Yeo said Adrian Mtungwazi had been overseas for family reasons since May 2025.

National Disability Services Australia chief executive Michael Perusco said reforms granting the commission stronger powers to crack down on alleged mismanagement were long overdue.

"Up until now, we have only seen action at the point where it's a crisis and we have to stop it occurring in the first place."

People with Disabilities Australia president Jarrod Sandell-Hay said more checks on businesses were needed within the NDIS.

"Serious questions need to be asked around how things like this can happen," he said.

For Liam, the transition to a new NDIS provider has not been easy.

Mr Earnshaw said the people the scheme was set up to protect ended up getting hurt.

"The government does have to bear some responsibility for this," he said.

"They certainly didn't ask to be born with the special needs that they have."