WA’s largest Aboriginal health service has been placed under special administration while South West Aboriginal Land and Sea Council has removed its chief executive after a disputed property deal.
Western Australia’s largest Aboriginal health service has been placed under special administration while South West Aboriginal Land and Sea Council has removed its chief executive after a disputed property deal.
Derbarl Yerrigan Health Service Aboriginal Corporation is one of WA’s largest Aboriginal corporations, with annual income of $16.2 million and 140 staff.
It operates four health service clinics across the Perth metropolitan area and is the largest Aboriginal community-controlled health organisation in the state.
The Registrar of Indigenous Corporations, Selwyn Button, said a majority of the corporation’s directors wrote to him yesterday requesting the appointment of a special administrator.
This process provides temporary protection and brings in independent professional assistance to address issues or challenges.
The registrar has appointed Jack James and Paula Smith from Perth firm Rodgers Reidy as the joint special administrators.
Mr Button did not specify the issues that triggered the appointment.
“The board has embarked on a course of action enlisting professional assistance to navigate current difficulties and strengthen governance practices in the best interests of the corporation and the community it serves,” Mr Button said in a statement.
The appointment comes after governance issues at Derbarl Yerrigan over many years.
Its latest annual report showed it had a surplus of $61,000 for the year to June 2019, the first surplus in three years.
Notably, the corporation was under the control of the Aboriginal Health Council of Western Australia during the two years to June 2019.
That followed the intervention of the Australian government’s Department of Health.
It returned to self-control in October 2019 after multiple changes at the top.
A new chair (Francine Eades) was appointed in April 2019 and a new board treasurer (Louise Tucker) was appointed in September 2018.
Two independent directors, Timothy Agius and Paul Case, joined the board in June 2019.
Derbarl Yerrigan appointed a new chief executive, Tracey Brand, in March this year.
Meanwhile, the South West Aboriginal Land and Sea Council has decided to not renew the contract of chief executive Wayne Nannup.
Mr Nannup has responded by taking action before the Fair Work Commission.
Council chair Jeanice Krakouer has also disclosed the board is concerned about a deal led by Mr Nannup to purchase the El Caballo Resort and Lifestyle Village east of Perth for $12 million.
This was one of several properties, including others in Baldivis, South Guildford and Midland, that were to be purchased through an entity known as Aboriginal Housing Recovery Centre Ltd.
AHCRL was established in October last year and the three ‘responsible persons’ were Ms Krakouer, Mr Nannup and former AFL footballer and Aboriginal businessperson Des Headland.
“Over time, the Board began to raise questions about the structure and ownership of AHRCL and about SWALSC transactions related to AHRCL activities,” Ms Krakouer said in a letter to SWALSC members.
“It became clear to the board that AHRCL was not a wholly owned subsidiary of SWALSC, and that it was becoming increasingly difficult for the board to have oversight and control of AHRCL’s activities as AHRCL had become a separate entity.
“When the board realised what had happened, the board took steps to regain control of the assets.”
This has included asking Equity Trustees, which manages the funds in the Noongar Charitable Trust, to halt any transfer of assets to AHRCL.
Ms Krakouer said these negotiations were ongoing.
“The board remains committed to ensuring that all assets remain under the ownership and democratic control of all Noongar people and are not diverted into outside entities that are not owned and controlled by SWALSC and its members.”
Mr Nannup’s plan for El Caballo was to provide housing for up to 180 indigenous Australians suffering hardship, with a range of social services such as domestic violence support, childcare facilities and a rehabilitation centre also to be offered at the property.
Ms Krakouer’s letter also disclosed the board has asked the Australian government’s National Indigenous Australians Agency to appoint a project manager to temporarily run the corporation.
“The board has also asked the NIAA to independently investigate some irregular financial transactions and conduct an independent examination of the finances to ensure compliance with our rules and funding agreement,” she said.
Her letter comes ahead of the SWALSC’s annual general meeting later this month.
It also comes ahead of High Court hearings on the landmark South West Native Title Settlement.
