Struggles mount for Straddie’s QYAC amid leadership changes, arts centre delays

The boss of North Stradbroke Island’s indigenous governing body has stepped down, as the corporation’s financial woes mount and its $16 million cultural centre remains stuck in limbo.

The statement of profit or loss for the year ended June 30 2024 shows a $453,217 comprehensive income loss as compared to a more than $2 million positive result in 2023.

The embattled governing body responsible for managing native title rights on North Stradbroke Island has undergone a major leadership shake-up following the departure of its chief executive and amid claims it was struggling to complete a $16 million arts centre on the island.

The Quandamooka Yoolooburrabee Aboriginal Corporation, known as QYAC, has started an “open” recruitment process to find a permanent replacement for Stephen Wright, who stepped down as CEO this month after almost two years at the helm.

Experienced executive and commercial lawyer Kate Healy has stepped in as acting CEO of QYAC, alongside chair Cameron Costello, a former CEO of the organisation.

QYAC chair Cameron Costello, a former CEO of the organisation. Picture: Queensland Government

Ms Healy, who has vast experience working with indigenous communities in New Zealand and has worked for PricewaterhouseCoopers and KPMG, is the third CEO the entity has had in five years.

The appointments were ratified at a QYAC board meeting on Tuesday when Mr Costello used his family’s casting vote, to install his new team.

The executive reshuffle drew mixed reactions from community members and split the island’s indigenous community into those aligned with the Minjerribah Moorgumpin Elders-in-Council Aboriginal Corporation and those aligned with the restructured QYAC.

It also raised fears that the new Quandamooka Arts and Culture Centre, on prime waterfront land at Dunwich, would be left incomplete.

QUAMPI was due to open in the first quarter this year but the building remains vacant awaiting QYAC to complete its final fit-out and landscaping before it becomes operational.

A bathroom inside the centre as photographed last week, is still awaiting a final fit-out. Picture: Contributed

Costs for the long-delayed cultural centre ballooned from original forecasts of $4.5 million in 2022 to $9 million in 2023, with the project’s cost now upward from $16 million and estimated at more than $22 million with further delays expected before completion.

The previous state government had planned for a smaller version of the centre to open in 2021 and held an official opening before last year’s election, while rushing through a 200m, $3 million road and bus turnaround.

QBuild construction workers vacated the site early this month, slating the opening delay back to QYAC.

Mr Costello’s return to a leadership role with the corporation last year after a four-year hiatus has fuelled criticism, with his previous tenure as CEO linked to allegations of financial mismanagement and a state Auditor-General investigation in 2021, with the results unknown.

This month, he made headlines pushing for an ambitious $300 million cultural centre in Brisbane despite critical housing shortages on Minjerribah/North Stradbroke.

QYAC is overseeing the final fit-out inside the centre, which was built by QBuild.

In 2021, QYAC, then headed by Mr Costello as CEO, was referred to the state’s Auditor-General for investigation into allegations of financial mismanagement, lack of transparency and governance.

Straddie Chamber of Commerce president Colin Battersby said the new cultural centre had soaked up millions in QYAC grant funding, with the body corporate now in desperate financial strife.

“It was designed to showcase indigenous culture, but right now, it’s an empty building with no landscaping and no activity,” Mr Battersby said.

“Millions have been spent and invested, and yet it remains seven-tenths completed and Dunwich businesses which were relying on it opening are now suffering.

“There are no TransLink buses bringing people to the centre despite a $3 million road being rushed through and built by a government-owned entity of TMR.”

An artist impression of the QUAMPI arts and cultural centre at Dunwich on Straddie/Minjerribah which was due to open in Q1. Picture: Queensland Government

QYAC’s consolidated financial report for the year to June 30, showed a sharp decline in revenue, leading to an overall loss after enjoying a profitable 2023.

Total revenue for 2024 fell to $14.8 million, a substantial drop from the $19 million recorded in 2023, marking a 22 per cent decrease.

The most notable decline came from grant revenue, which plummeted from $8 million to just $3.8 million, severely impacting the organisation’s bottom line.

While revenue from camping and accommodation increased slightly, rising from $5.9 million to $6.5 million, and holiday van and permit revenue remained relatively stable, the commercial streams were not enough to offset the loss of grant funding.

One of the structures outside the incomplete QUAMPI centre at Dunwich. Picture: Contributed

Revenue from other ordinary activities also declined, adding further pressure to QYAC’s finances.

Despite a decrease in total expenses, which fell from $16.7 million in 2023 to $15.2 million in 2024, cost-cutting efforts were insufficient to prevent the organisation from slipping into the red.

After accounting for tax, QYAC’s total loss for 2024 stood at $453,217, compared to a profit of $2.2 million in 2023.

Mr Battersby said the QYAC decrease in grant funding was detrimental and added to concerns about the entity’s long-term sustainability under its current financial model.

Residents speaking on the grounds of anonymity, said Mr Wright’s exit raised questions about stability within QYAC and concerns about maintenance and upkeep of local public areas and access roads.

QBuild workers left the site two weeks ago as concerns grow about QYAC finances. Picture: Contributed

They said they were fearful the new body corporate, headed by Mr Costello, would return to past problems, which included allegations of financial mismanagement, lack of transparency and governance.

Resident Joyce Mitchell said she was sad to hear Mr Wright had left.

“I really appreciated his opening up the communications with our community,” she said.

“I hope we don’t go back to the way things were before him.”

Mr Costello was contacted for comment on whether QUAMPI’S opening was being delayed due to financial constraints.

Originally published as Struggles mount for Straddie’s QYAC amid leadership changes, arts centre delays