Hundreds of Aboriginal businesses receiving taxpayer funding have failed to submit all of their required documents in a revelation that has drawn the wrath of Senator Pauline Hanson.
A report published on August 6 revealed 1254 Aboriginal and Torres Strait Islander businesses failed to lodge necessary general, financial, auditor or director reports during the 2023-2024 financial year.
Of this number, 26 firms were classified as ‘large’ with an income above $100,000, according to the Office of the Registrar of Indigenous Corporations (ORIC).
The number had risen year-on-year, with 792 companies failing to lodge the documentation with the ORIC in the previous financial year.
Politicians have leapt on the data, particularly the firebrand One Nation senator, who called for a widespread audit of the groups on Thursday, saying that transparency and accountability were paramount.
‘Some of these organisations have eight or nine-figure budgets and millions of dollars worth of assets, with CEOs earning wages well over $250,000,’ Senator Hanson said.
‘One Nation renews our call for a comprehensive audit of this corrupt, nepotistic Aboriginal industry that is preying on Australian taxpayers.’
She claimed the system was ‘denying meaningful assistance to Indigenous Australians in genuine need’ and ‘failed for decades to make any meaningful progress in closing the gaps’.
Pauline Hanson (pictured) has called for an audit after 1254 Indigenous companies failed to lodge important reports with the Office of the Registrar of Indigenous Corporations
‘The Australian people have every right to know exactly how every cent of their money is being spent, but the people running this gravy train clearly do not want to be held accountable.’
The senator also took aim at the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI) which operates independently from the legislation overseen by the Australian Securities and Investments Commission (ASIC).
Complaining about the ‘reduced compliance required of Indigenous corporations’, she claimed they are not even meeting these standards.
‘There will never be meaningful progress in closing the gaps until those charged with closing them are held accountable,’ she said.
Coalition Indigenous affairs spokeswoman Kerrynne Liddle also old the Herald Sun the findings by ORIC were ‘unacceptable’.
‘Where organisations receive taxpayer money to deliver these critical services, they must meet all regulatory, governance and legislative standards,’ she said.
‘Where they do not, it is fair to question whether they are delivering services as intended.’
But Tricia Stroud, who is Registrar of ORIC, said it is incorrect to suggest companies registered under the CATSI Act have lesser accountability for taxpayer funds.
The Albanese government said reporting is under the jurisdiction of the independent regulator
‘Of the 1,254 corporations yet to lodge their 2023–24 reports, 82.4 per cent are classified as small, with annual income typically under $100,000,’ she said.
‘These corporations are less likely to receive government funding.’
‘Secondly, assertions of lack of accountability or lower standards under the CATSI Act are unfounded,’ Ms Stroud said.
She explained that the CATSI Act does not reduce compliance requirements compared to the Corporations Act 2001, adding many firms would face fewer reporting requirements if they were registered under the Corporations Act 2001.
She ended by adding that her role is ‘independent and impartial and does not engage in political debate (but) she strongly defends the transparency of the sector’.
A government spokeswoman told the Herald Sun the management of reporting by Indigenous organisations was a matter for the independent regulator, ORIC.
‘ORIC’s independent regulation is fundamental to the accountability of the diverse First Nations corporate sector registered under the … Act,’ she said.
