The NSW Department of Education has cancelled approval for the firms behind 3 Bears in the western Sydney suburbs of Cabramatta, Fairfield and Canley Vale to provide childcare services.
With director Tuan Trang trying but failing to stay this decision in the NSW Civil and Administrative Tribunal, allegations against his firms have been revealed.
The government has alleged two of the three firms intentionally over-enrolled their children and moved them between centres without parental consent to avoid detection during inspections.
This meant there were not enough staff to take care of the kids enrolled, exceeding ratios imposed by the state government.
The children were taken to Mr Trang's home or escorted on "excursions" to public libraries and supermarkets without asking parents first, according to an NCAT decision on Thursday.
Three children were allegedly placed in a van without water or their backpacks to escape a Department of Education inspection.
Staff were threatened or penalised when they did not boost enrolments or spoke about any inadequacies, while additional remuneration was offered to those who over-enrolled students, the department claims.
Other allegations include the use of high chairs to restrain children, a failure to properly treat injuries at the centres, overcharging childcare subsidies to vulnerable parents and neglecting to deal with exposed electrical wires above a handwashing sink.
The department's cancellation orders target all three firms owned and run by Mr Trang.Â
Representing his firms in the NSW Civil and Administrative Tribunal, Mr Trang appealed against the government's decision.
On Thursday, tribunal senior member Craig Mulvey dismissed the director's bid to stay this decision, finding it was necessary to "ensure the safety, health and wellbeing of children attending education and care services at the relevant centres".
Mr Trang initially denied moving children from one centre to another and then tried to shift blame when shown evidence that contradicted his version of events, Mr Mulvey said.
There was little evidence by Mr Trang or the childcare centres answering the allegations or explaining their conduct, he noted.
The tribunal acknowledged an external consultant had been hired to rectify some of the issues, but said some breaches remained.
While there would be inconvenience to the parents of children enrolled in centres now shut down, this had to be balanced against the "ongoing risk of serious harm" these facilities posed, Mr Mulvey said.
