Land council budget held back
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An Aboriginal land council’s budget has been frozen amid governance concerns.
The Federal Government has taken action against the Anindilyakwa Land Council (ALC) following the findings of an independent review into its governance.
Minister for Indigenous Australians, Senator Malarndirri McCarthy, has announced measures that include withholding the ALC's budget for 2024-2025 until significant improvements are made.
The independent review, commissioned by the National Indigenous Australians Agency (NIAA), assessed the ALC’s progress in addressing the recommendations of a 2023 governance audit by the Australian National Audit Office (ANAO).
The review concluded that the ALC’s governance, operations, and decision-making processes remain “deficient”, despite the Council’s acknowledgment of previous recommendations.
Minister McCarthy described the lack of progress as “unacceptable”.
In response, the Minister has implemented several measures.
She has notified the ALC Board and voters of the review’s findings ahead of the upcoming board elections.
More notably, she has withheld approval of the ALC's full budget for the 2024-2025 financial year, approving only an operational budget until 1 December 2024. The full budget will only be considered once the ALC demonstrates substantial progress in implementing the review’s and ANAO’s recommendations.
“Good governance is the cornerstone of trust and needs to be based on transparency, fairness, and accountability. Without the trust of the Anindilyakwa people and other key stakeholders, the ALC cannot properly represent its people and achieve its mission,” McCarthy said.
The ALC, representing the Groote Archipelago’s communities, has been under scrutiny following allegations of financial mismanagement.
Earlier this year, the Council's Chief Executive, Mark Hewitt, was referred to the National Anti-Corruption Commission over claims of misusing millions in mining royalties. This includes substantial sums benefiting companies where he held executive roles, raising serious concerns about conflicts of interest.
In her statement, Minister McCarthy also instructed the NIAA to make the full independent review publicly available, ensuring transparency in the process.
She expects the new ALC Board to engage with the NIAA Integrity Group to address the findings and implement necessary changes.
Mr Hewitt has hinted at his potential resignation as ALC Chief Executive, proposing instead to serve as a consultant for Winchelsea Mining and Groote Holding Aboriginal Corporation, organisations implicated in the royalty misuse allegations.