The embattled transcription business relied on by the federal justice system is being wound up and will cease service imminently, threatening the day-to-day operations of some of Australia’s most important courts and forcing them to scramble to find a replacement.
Administrators for Canadian-owned transcription giant VIQ Australia told court officials on Wednesday the company would be wound down, affecting 600 staff and the production of daily transcripts in almost 200 courtrooms nationwide.
The announcement comes less than two weeks after the federal courts revealed they had paid $5.3 million more in their contracts with VIQ than previously disclosed.
In Senate estimates on Tuesday, the CEO of the Federal Circuit and Family Court, David Pringle, said that VIQ had threatened to “withdraw services”, which forced the courts “to scramble to try and find appropriate contingency arrangements”.
VIQ has come under sustained scrutiny over the past year, including from Greens senator David Shoebridge, over alleged data breaches, as well as the inaccuracy and high cost of its transcripts, which can reach between $3000 and $5000 for a single day’s hearing.
Source: Federal court transcript crisis as VIQ Australia collapses