Baby Gammy's twin sister Pipah will be raised by Bunbury couple David and Wendy Farnell after a judge ruled on Thursday that she not be returned to Thailand to be raised by her birth mother.
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Family Court of WA Chief Judge Stephen Thackray ordered Pipah continue to live with her Bunbury parents, subject to strict conditions including regular visits by Department of Child Protection officers.
Pipah's birth mother, Pattaramon Chanbua, 22, applied to the court in April 2015 to raise Pipah after learning Mr Farnell, 58, was a convicted paedophile who had previously served time in jail for molesting young girls in the 1990s.
Pipah was born in Thailand in December 2013 by commercial surrogacy using Mr Farnell's sperm and an unidentified woman's egg after several failed attempts for Mr and Mrs Farnell to conceive using IVF.
Pipah's twin brother, Nareubet Minjaroen, known as "Gammy" has Down Syndrome and lives in Thailand with Ms Chanbua and her husband, Nid Chanbua.
The twins' births sparked a media frenzy when it was reported the Farnell's abandoned Gammy in Thailand after learning he had a disability.
On Thursday, Justice Thackray made an order that it go on the record that the parents did not abandon Gammy, nor did they seek access to money in his trust account, at any time – as was reported at the time.
Justice Thackray found the three-year-old, who has been raised by the Farnell's since birth, lived a happy and content life, and would be traumatised if removed from the only parents she's ever known.
"I have primarily taken into account the strong attachments that Pipah has now formed with the Farnells and many others in Bunbury, as well as the quality of the care she is receiving," he said.
"While it is a matter of grave concern to leave any child in the home of a convicted sex offender, I have accepted the expert evidence that while there is a low risk of harm if Pipah stays in that home, there is a high risk of harm if she were removed.
"I have also taken into account the measures that can be put in place to ensure Pipah is kept safe."
Those measures include Department of Child Protection officers visiting their home at least three times a year by appointment and additional unannounced visits.
The Farnell's must also comply with a 'safety plan' developed for Pipah.
The Judge ruled the Farnell's send artwork drawn by Pipah to Ms Chanbua and Gammy at least three times a year once she starts school – to keep a bond between the twins.
He, however, decided against ruling regular electronic communication be kept between the two families, leaving that decision to the parents.
Neither parents have seen the other twin since the Farnell's left Thailand with Pipah.