An Onslow-based Aboriginal corporation has returned to member control after a major restructuring that included selling its pastoral stations and other assets.
An Onslow-based Aboriginal corporation has returned to member control after a major restructuring that included selling its pastoral stations and other assets.
The Buurabalayji Thalanyji Aboriginal Corporation was placed in the hands of a special administrator in January after it failed to lodge financial statements or hold annual meetings of members.
Recently completed financial statements show that BTAC incurred a net loss of $11.5 million for the year to June 2019, after a profit of $466,000 in the prior year.
“This was grim news for the membership to accept and digest,” administrator Peter Saunders said.
Mr Saunders foreshadowed a further loss in FY20 as the corporation reviewed loans to its loss-making subsidiaries, including its pastoral stations.
“These debts are unlikely to ever be repaid,” he said.
The corporation is in the process of selling about $10 million of assets.
It has already sold its Diamond Down land for $1.7 million and about 2,000 head of cattle for more than $1 million.
Its Maroonah and Mangaroon pastoral leases, which have a carrying value of $5.3 million, are due to be sold before the end of the year.
It also has commercial properties in Onslow on the market for about $2.2 million and is seeking to sell about $500,000 of plant and equipment that had been used on the pastoral stations.
The restructuring process included appointing Ric West as the new chief executive.
The FY19 annual report disclosed that his predecessor, Matthew Slack, had been paid an annual salary of $618,748.
Mr Slack was also reimbursed travelling and entertainment expenses.
The annual report itemised nearly $9 million of operating costs that did not have supporting documentation.
This included $1.7 million of travel expenses.
BTAC’s auditor, Elderton Group, did not provide an audit opinion in the annual report, saying it was unable to obtain sufficient appropriate audit evidence.
BTAC’s annual report showed it had net assets of $17 million at June 30 2019.
Mr Saunders also disclosed that BTAC has appointed law firm Squire Patton Boggs to continue its long-running legal action against Mitsui & Co subsidiary Onslow Salt.
BTAC believes it may be owed royalties from the removal in 2012 of up to 10 million cubic metres of material from the mining lease that encompasses Onslow Salt’s operations.
The Registrar of Indigenous Corporations, Selwyn Button, said the special administrator had worked to inject much-needed cash.
‘As members now know, BTAC’s financial position and performance have declined significantly,” he said.
“It will take time to recover, and there will be challenges ahead, but it’s now better positioned and on the right course.”
“The lesson here is that healthy corporations ensure they are transparent with their members.”
