Petition calls for independent scrutiny of Anindilyakwa Land Council to restore ‘good faith’

Equivalent to almost 10 per cent of Groote’s population are lobbying for the government to intervene after auditor’s report finds ‘high risk’ of conflict of interest at the ALC.

Hundreds have signed a petition calling for an independent investigation into management at the Anindilyakwa Land Council.

Hundreds of Groote residents have called on the federal government to launch an investigation into ‘potential gross misconduct’ at the Anindilyakwa Land Council after a damning auditors report alleged failures in governance, transparency, and managing conflicts of interest.

Tabled in federal parliament last Monday, a petition endorsed by “the Anindilyakwa people and traditional owners and extended families of the Groote Archipelago” had 235 signatures – equivalent to almost 10 per cent of Groote’s total population.

It lobbied for an independent investigation into the council’s leadership, after the Auditor General’s office last year found millions of dollars in royalties were going towards a mining company which ALC chief executive Mark Hewitt also directs.

Anindilyakwa Land Council chief executive Mark Hewitt is also chief executive and co-director of Winchelsea Mining. Picture: Zizi Averill

“(The Australian National Audit Office) report showed that members of the Anindilyakwa Land Council executive and Board of Directors may not have acted in their employed and elected roles in good faith for the governance of the people of the Groote Archipelago,” the petition said.

“The report outlines numerous examples of conflicts of interest that may not be in line with their expected terms of employment or elected positions.

“We therefore ask the House of Representatives to call for an independent investigation into potential gross misconduct of terms of employment of the Anindilyakwa Land Council executive and elected positions of the Board of Directors, in order to restore good faith in the Anindilyakwa Land Council’s ability to govern the people of the Groote Archipelago in their best interests and without prejudice.”

The ALC says ventures such as Winchelsea Mining are important for the future of Groote after Gemco closes. (AAP Image/Stephanie Flack) NO ARCHIVING

The audit report found governance of the ALC was only “partly effective”, did not fully satisfy itself that Traditional Owners understood the proposals they agreed to, and lacked transparency in its decisions about the distribution of royalties.

It said the requirements of Commonwealth fraud rules were not fully met, and the internal audit committee was not delivering on most of its key functions.

Auditors also found $24m of the ALC’s 2021-22 royalties were invested into entities supporting Winchelsea Mining – an enterprise jointly established and directed by Mr Hewitt, but majority owned by Traditional Owners.

The report made 15 recommendations in total, of which the ALC accepted 14 and said 10 have since been implemented, “as well as many subsequent related actions and self-identified initiatives to enhance our governance”.

Mr Hewitt denied any wrongdoing and the ALC said it was confident conflicts of interest had been properly managed.

Minister for Indigenous Australians Linda Burney is receiving regular updates from the ALC as it implements auditor’s recommendations. Picture: NCA NewsWire / Martin Ollman

The ALC has received $646.6m in royalties and rents for mining and non-mining operations over the past decade.

Fronting senate estimates last week, Mr Hewitt said initiatives such as Winchelsea Mining were crucial to help mitigate the royalties cliff faced when the Gemco mine shuts down in coming years.

“The revenue for that will enable all these other important things to occur — in particular, getting our mining trust up to a figure which can sustain valuable, important cultural and community support programs,” he said.

“The recent (Australian National Audit Office) audit is the first one we’ve had since 2008.

“We’ve welcomed its recommendations to improve the documentation of our policies and procedures. We’ve grown very rapidly in the last 12 years to plan for the closure of Gemco.”

Federal Minister for Indigenous Australians Linda Burney said had asked the ALC for regular updates as it implemented reforms recommended by the auditor’s office.

“Ensuring strong governance of the Anindilyakwa Land Council is important for the Anindilyakwa people,” Ms Burney said.

“The National Indigenous Australians Agency will work closely with the ALC to support the implementation of the recommendations.”