The Registrar of Aboriginal Corporations has appointed a WA administrator, Brian McMaster of KordaMentha, to Wirrimanu Aboriginal Corporation, replacing Ian Swan of Hall Chadwick due to the expiry of Mr Swan’s contract.
Wirrimanu is located in the remote community of Balgo, in the East Kimberley, WA. It is funded to operate a large CDEP; provide a wide range of municipal services including an airport and until recently power; maintain housing; and run sports and recreational activities.
Wirrimanu has been under administration since 2003 for failing to comply with the Aboriginal Councils and Associations Act 1976 (the ACA Act). The administration has been complex and lengthy due to a range of social and service issues faced by the corporation and the community it serves.
In 2003 the corporation was experiencing extreme governance problems, to the point where it had become insolvent and service delivery was poor including by the subsidiary community store. A governance audit showed that financial records were in disarray, the governing committee was not validly elected, asset control was non-existent and taxation obligations had not been met.
Law and order was the main issue facing the community.
Since then, substantial progress has been made.
Following the appointment of the administrator, a permanent police presence was introduced in 2005, along with a child protection worker, a youth worker and the building of a new regional health centre.
The shop is better supported, it meets required standards and there is an ongoing process for dealing with consumers’ complaints and improving its governance. A recent food safety inspection of the store by Halls Creek Shire Environmental Health Officers has noted a significant improvement of food safety, in terms of food storage, stock rotation, and a demonstrated understanding of food safety practices under the current management.
Opal unsniffable fuel was introduced in April 2005, which has contributed to better managing of petrol sniffing in the area.
Trachoma rates in Balgo have fallen from an average of 30 per cent between 1997 and 2003 to 22 per cent in 2004, and the immunisation of children is 100 per cent.
The situation of the Wirrimanu Aboriginal Corporation has been stabilised, including delivery of CDEP programs, maintenance of the airport and municipal services and a normalised power service managed now by the state provider; new housing has been completed with more to be built in the near future; and there has been considerable community consultation over the period of the administration.
As part of the ‘exit strategy’ to transfer control from the administrator back to the corporation in 2008, the Office of the Registrar of Aboriginal Corporations is running a series of corporate governance training for residents. Community members have already participated in corporate governance training held in Mirrilingki in May 2006, along with people from Mulan, Bililuna and Ringer Soak.
The exit strategy also involves supporting a re-design of rules for the corporation and its subsidiary shop as well as the development of a better governance structure for the corporation to meet its future role and requirements under the new Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act).
The Aboriginal Councils and Associations Act 1976 (ACA Act)—soon to be replaced by the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act)—establishes the Registrar of Aboriginal Corporations as an independent statutory office holder.
The ACA Act is a regime under which Indigenous organisations can incorporate. It allows some scope for flexible incorporation in line with cultural practices. It also provides for active monitoring and regulation of Indigenous corporations, some of which pose special risks and have special requirements.
In general, administrators are appointed to achieve turnaround for a corporation experiencing difficulties.
The new CATSI Act, to begin on 1 July 2007, is more closely aligned with mainstream corporate governance practice, and allows groups to design their corporations taking account of their particular cultural circumstances.
Janet Millar 0427 259 789
27 February 2007
ORAC MR0607-07
(to replace ORAC MR0607-06)
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