Debt ridden CAAMA placed under special administration

The Central Australian Aboriginal Media Association has been placed under special administration by the Office of the Registrar of Indigenous Corporations over severe financial issues and growing debt.

CAAMA is the largest Aboriginal media organisation in Australia.

The Central Australian Aboriginal Media Association (CAAMA) has been placed under special administration by the Office of the Registrar of Indigenous Corporations (ORIC) over severe financial issues and growing debt.

In making the announcement, Registrar of Indigenous Corporations Selwyn Button said CAAMA’s tax debt has more than doubled.

“Despite having a repayment plan with the Australian Tax Office, its tax debt has more than doubled, reaching a critical level that is not sustainable,” he said.

“The special administrators will look at all options to help CAAMA improve its financial position.”

The Registrar’s office has been monitoring CAAMA’s financial position over recent years while it implemented strategies and changes to policy and structure intended to address solvency concerns.

However the position has worsened and the Registrar has decided that specialist support is needed now.

In 2018–19, CAAMA generated approximately $4.1 million in revenue, of which 63 per cent was grant funding but its liabilities are also considerable, and growing.

The media company was given a month to come up with reasons why it shouldn’t be placed under special administration.

“CAAMA is a landmark media corporation approaching its 40th anniversary,” Mr Button said.

“Unfortunately, over the last couple of years it has been unable to demonstrate improvements to its financial position or that it can trade itself out of debt.”

Special administration is a measure under the Corporations Aboriginal and Torres Strait Islander Act (CATSI) designed to address governance or financial issues in a corporation.

According to corporate reports filed over the last decade, CAAMA recorded the lowest number of staff members in the 2018-19 financial year.

CAAMA, which claims to be the largest Aboriginal media organisation in Australia, reported 42 employees in the 2014-15 financial year but this has dropped to only 22 employees in the 2018-19 financial year.

The media company was established in 1982 and has been recognised as a vital part of maintaining Indigenous language and culture, especially in Central Australia.

CAAMA broadcasts news programs and music in several Indigenous languages including Arrernte, Pitjantjatjara and Warlpiri.

According to their website, CAAMA is governed by an elected Indigenous board reporting to Indigenous members, while operations are managed by the CEO.

An ORIC spokeswoman said the media organisation was “drowning” in debt and the measure is designed to work in the best interests of the corporation and its members, rather than creditors.

“The aim is to address governance or financial problems and return the corporation back to members’ control as soon as possible,” she said.

The Registrar has appointed Mr Jack James and Ms Paula Smith from Rodgers Reidy as joint special administrators until 12 June 2020.

CAAMA has been contacted for comment.