Central Australian Aboriginal Media Association granted extention of special administration
DESPITE being placed into special administration earlier this year, the Central Australian Aboriginal Media Association’s (CAAMA) debt, estimated to be in the millions, has continued to grow
Alice Springs
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DESPITE being placed into special administration earlier this year, the Central Australian Aboriginal Media Association’s (CAAMA) debt, estimated to be in the millions, has continued to grow.
The Registrar of Indigenous Corporations, Selwyn Button, announced a second extension of the special administration for the 40-year-old business to continue until November 27 after the initial move on March 9 this year.
At the time of the announcement Mr Button said, despite having a repayment plan with the Australian Taxation Office, CAAMA’s tax debt had more than doubled, and had reached a “critical level” that was not sustainable.
Mr Button said, after appointing special administrators, CAAMA’s debt continued to grow “due to failings of the former management”.
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“Having contravened the terms of its funding agreements, in June CAAMA’s major funding bodies issued the corporation with invoices for over $0.8 million.
“That move has compounded debts that were already significant before the special administration.
“CAAMA’s unaudited financial report for 2019–20 indicates current liabilities in excess of $2.7 million and an operating loss in excess of $1 million.
“The special administrators have also identified shortcomings that were previously unknown to my office.”
CAAMA had mismanaged royalty payments to artists and as a result, it owes them approximately $100,000.
Installation of studio equipment did not meet industry standards, leading to chronic problems with broadcasting.
CAAMA’s inadequate reporting, or its failure to report at all, drove some smaller funders to delay releasing funds, in turn causing cashflow problems for CAAMA.
Mr Button said a second extension was required after “both the significant jump in debt and poor operations have made the task of resolving the financial issues more difficult than anticipated”.
He said the special administrators will continue to work through issues in order to hand back the corporation to the control of its members.
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