Island elder demands action after QYAC financials revealed

A North Stradbroke Island Indigenous elder’s call for the island’s main Indigenous governing body to be put into administration has been rejected.

North Stradbroke Island’s QYAC chair Cameron Costello, right, and island elder and traditional owner Mark Jones with the letter he wrote to ORIC.

The country’s Indigenous corporations watchdog will not conduct a financial review into a Queensland body corporate, despite an independent financial review this month uncovering alleged serious concerns.

The Office of the Registrar of Indigenous Corporations, known as ORIC, rejected a formal request to place the Quandamooka Yoolooburrabee Aboriginal Corporation under special administration.

The request, submitted by Quandamooka Elder Mark Jones on behalf of traditional owners and Common Law Holders of Native Title on North Stradbroke Island (Minjerribah), alleged financial mismanagement, governance failures, and potential legal breaches.

The concerns stemmed from a review commissioned by former QYAC chief executive Stephen Wright and conducted by Sydney-based financial firm Cornwalls RSM Australia.

The review, which was not authorised by the QYAC board, reportedly found unreconciled payments, outstanding superannuation obligations, and discrepancies in the financial statements of subsidiary business Minjerribah Camping.

Minjerribah Camping runs the island’s camping grounds. Picture: Minjerribah Camping

It also called for an urgent reassessment of fixed assets after several were missing from financial records.

Traditional owners, including Mr Jones, urged ORIC to intervene immediately to safeguard QYAC’s financial integrity and restore trust within the island community.

However, QYAC chairman Cameron Costello dismissed the need for external intervention, stating that the organisation had engaged an independent Queensland corporate governance expert to review the Cornwalls RSM findings.

He criticised the Cornwalls report, arguing it was based on limited information and conducted without consultation with previous auditors or accountants.

“The corporate accountant expert that QYAC has engaged has revised the ‘risks’ in the report downward and is undertaking a detailed review of all QYAC operations to ensure there are no other issues,” Mr Costello said.

“The QYAC financial statements were accurate, a true and fair representation of QYAC’s financial position, and Cornwalls RSM did not find they were inaccurate.

“They raised ‘risks’ and clearly stated that ‘our work does not entail an investigation’ and that it ‘does not constitute an audit or review under Australian Auditing Standards’.

“I am confident that the independent review, like all the other investigations into QYAC including one by ORIC in 2021, will show that QYAC has been generally sound and responsible in its financial management,” Mr Costello said.

The ORIC reply to island elder Mark Jones’s call for QYAC to be put into administration.

He said QYAC’s financial statements were publicly available on the ORIC website, demonstrating transparency and the board had engaged with both ORIC and its members to address governance matters.

Under the Corporations (Aboriginal and Torres Strait Islander) Act, ORIC has the authority to intervene if an Indigenous corporation’s governance and finances require urgent correction.

Mr Jones raised doubts about the QYAC board’s ability to address these issues internally, citing deep divisions within its leadership.

He also alleged that past investigations, including the Cornwalls RSM report, had been obstructed, with key information withheld from regulators and community members.

He requested an independent forensic audit as part of ORIC’s intervention.

“This Cornwalls report has identified major governance and financial failures, yet the chairperson refuses to accept responsibility,” Mr Jones wrote to ORIC.

“We need ORIC to step in and put this corporation on the right path for the benefit of the Quandamooka People.”

ORIC delegate Kevin Vu acknowledged the concerns but stated that QYAC would not be placed under special administration at this time.

In a March 18 reply, he emphasised ORIC’s preference for Indigenous corporations to resolve internal governance issues independently.

“Special administration is not undertaken in every matter, even if grounds exist,” Mr Vu said. “Directors and members are making active inquiries into the details of the Cornwalls advice and have undertaken to keep ORIC informed.”

Mr Jones expressed disappointment with ORIC’s decision, arguing that it applied “inconsistent standards” compared to similar cases, such as the Waayni Native Title Aboriginal Corporation, which was placed under special administration for governance failures this year.

He also pointed to growing divisions within QYAC leadership, highlighted by two competing meetings held simultaneously on March 1.

QYAC board member Dean Parkin. Picture: Contributed

One, organised by board member Dean Parkin, sought to rally members for a general meeting to formally address governance issues.

Another Elders briefing was convened by the QYAC chair Mr Costello.

“Despite ORIC’s refusal to step in immediately, the traditional owners remain determined to push for accountability and we have vowed to continue gathering support for a formal general meeting to challenge QYAC’s leadership and financial management,” Mr Jones said.

Originally published as Island elder demands action after QYAC financials revealed