Whistleblower urges ASIC to intervene as RACP crisis deepens

A whistleblower has called on corporate regulators to intervene in the deepening crisis at the Royal Australasian College of Physicians (RACP), alleging misconduct by the Board and warning of the risks of “complicity” in regulatory inaction. Stephanie Tran reports.

In an email sent to ASIC and seen by MWMAn RACP whistleblower claims an external investigation carried out by consultancy firm Centium has confirmed multiple allegations of bullying and harassment against RACP president and chair Professor Jennifer Martin.

The email also alleges widespread breaches of directors’ duties and corporate governance obligations.

The call to regulators came weeks after university members was overwhelmingly rejected A second EGM to remove President-elect Dr Sharmila Chandran and ongoing transactions At the Fair Work Commission regarding bullying allegations against Professor Martin.

Bullying allegations

According to the email, an external investigation carried out by Centium into Professor Martin’s behavior towards the College’s company secretary allegedly substantiated seven allegations of bullying and harassment. The whistleblower claims the findings were presented to the board earlier this month.

MWM has not independently verified the report’s conclusions. Martin has previously denied allegations of bullying and misconduct. The questions were forwarded to the university.

In the email, the whistleblower argues that the findings, if proven, would violate Martin’s duties under workplace health and safety laws as well as the College’s own board charter.

“As director and chair of the RACP, Prof Martin is in breach of many articles of the board’s constitution,” the whistleblower wrote, citing obligations to promote a constructive culture, encourage respectful relationships and hold higher standards of conduct from staff.

The RACP has been approached for comment on the whistleblower’s allegations. A response was not provided in time until the publication of this article.

The university has said this before

denies allegations of bullying or inappropriate management.

RACP board in disarray as dissenting director prevails at doctors’ meeting

Allegations of ongoing harm to staff

The email claims the effects of the alleged behavior are ongoing and severe, with multiple senior staff currently on stress or psychological leave.

The whistleblower described a pattern of repeated investigations into Martin’s conduct since 2022, with assurances given following previous mediation processes that were allegedly “repeatedly violated”.

“These issues are not historical,” the tipster wrote. “Despite being made aware of these findings last week, Professor Martin continues his usual course of action.”

The Board of Directors’ communiqué is under review

The whistleblower’s plea to ASIC followed the publication of a board statement sent to RACP members on 12 December, setting out decisions taken from board meetings held on 31 October and 2 December.

According to the statement, the board decided not to disclose the names of those who usurped the failed extraordinary general assembly meetings; this, citing concerns about the psychological risks to those involved and arguing that EGMs were “validly and democratically called” in accordance with the College’s statutes.

The document also reveals the board has abandoned plans to appoint new directors, allegations of public “hoarding” and an “inability to guarantee the safety” of potential appointees on the current board.

The proposed appointments had alarmed some members after an early meeting was held, although another board meeting was not scheduled until February. There were also concerns about the transparency of the appointment process.

The statement states that three candidates withdrew their interest following the November 26 EGM results. Elections of new board members have been postponed until early 2026, and appointments will begin in May.

The statement was allegedly issued without the advice of legal counsel and the approval of all directors.

Governance and financial concerns

Beyond allegations of bullying, the whistleblower raises serious concerns about management, including allegations that the board’s minutes dating back to May 2025 remain unsigned; allegedly because the president tried to remove references to his behavior or change decisions.

It is claimed in the e-mail that an attempt was made to change the minutes; this claim could raise regulatory issues under the Companies Act. MWM has not independently verified these claims.

The tipster also points out that major financial decisions, including a $30 million IT loan and a nearly $100 million budget, were approved at a December board meeting without a president-elect or treasurer.

Use of member funds, request for regulatory intervention

The email also claims that despite excessive spending on EGMs and failed constitutional amendments, university funds continue to be used for external legal advice.

In November, 125 RACP Members signed an open letter to Martin outlining concerns about the College’s spending and management.

“The financial cost of this ongoing conflict is unprecedented and unsustainable. The significant expenditure of University funds on legal wrangles and repeated, rejected EGMs over the past two years represents an unacceptable misuse of member funds,” the letter said.

Members demanded that Martin “consider resigning” due to the “clear rejection of the Board’s recommendations and the serious loss of members’ confidence”.

“We believe it is important for you to take personal responsibility for this unworkable situation that has developed,” Fellows said.

In his response to the letter, Martin rejected allegations about the board’s conduct and said allegations of misuse of funds were “unfounded”.

“No evidence has been presented that the board ‘mismanaged’ funds and I do not accept this accusation.” said Martin.

The whistleblower pleaded with ASIC to take action, arguing that the College’s monopoly on doctor training and accreditation was in the direct public interest to administer it.

“Only regulators can take action,” the email states. “Failure to intervene risks regulators being perceived as complicit in this behaviour.”

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