The federal government cut funding to John Mercer Lodge in Perth this week after discovering serious risks to residents, including inadequate provision of food and drink. The facility, operated by the not-for-profit group Silver Chain, has been sanctioned for six months. Silver Chain chief executive Chris McGowan said: "Silver Chain are just so disappointed, devastated, by the results of the audit. Yet, in some ways it is positive, because it is going to really focus us on getting right on top of this issue and fixing it.” Mr. McGowan stated a merger of two lodges that had resulted in staff losses had contributed to the facility’s problems. Silver Chain has 39,000 residents in its care throughout Western Australia; John Mercer Lodge is one of six facilities it operates in the state.