Auditor-General urged to probe the North Australian Aboriginal Justice Agency

The Auditor-General has been pushed to investigate serious allegations of corruption and fraud from within Australia’s largest Indigenous legal body.

Senator Michaelia Cash has pushed the Auditor-General to investigate serious allegations of corruption and fraud within NAAJA, including claims against chairperson Colleen Rosas, pictured.

The Auditor-General has been urged to probe the alleged misuse of millions of dollars in taxpayer funds within Australia‘s largest Indigenous legal organisation, following explosive allegations of corruption and fraud amongst senior staff, two of whom are still employed.

Opposition legal affairs spokesperson Michaelia Cash referred the matter to Commonwealth Auditor-General Grant Hehir and the Australian National Audit Office earlier this month, pressing an investigation into the near-$20m provided to the North Australian Aboriginal Justice Agency every year.

The referral comes following extensive reporting in this masthead that revealed dozens of serious allegations of criminal conduct amongst NAAJA’s leadership team.

Those allegations included that finance chief Madhur Evans made a secret $20,000 payment into chairperson Colleen Rosas’ bank account, and former chief executive Priscilla Atkins used company funds to purchase artworks, flights, and vehicles including a $129,000 Range Rover.

Former NAAJA chief executive Priscilla Atkins.

NAAJA is currently receiving $83m over a five year period from the National Legal Assistance Partnership (NLAP), which is helmed by the federal government.

Senator Cash requested Mr Hehir consider “an audit of arrangements under the NLAP that may result in the payment of Commonwealth money to NAAJA.”

“I refer to reports recently published in The Australian newspaper setting out claims regarding the administration of the NAAJA,” Senator Cash wrote in a letter to Mr Hehir, obtained by The Australian.

“The reports raise serious concerns about the potential misuse of Commonwealth money provided under the National Legal Assistance Partnership, and the efficacy of governance arrangements under that agreement.

“Among other things, the allegations give rise to concerns that Commonwealth money may have been used to support behaviour which, if proven, may constitute corruption or potential criminal conduct.”

Senator Cash continued: “Specifically, I ask that you consider a performance audit to assess the adequacy of data collection, performance monitoring and other governance arrangements under the NLAP, and whether adequate safeguards are in place to ensure that Commonwealth money is not being misused.”

She said if improvements to NAAJA were identified through the audit “I ask you to consider whether they ought to be implemented more generally in respect of funding to other service providers that is governed by the NLAP.”

Senator Cash said there was a “degree of urgency” to the issue, considering the government will reassess the NLAP next year ahead of its expiry in 2025.

“If the next iteration of the NLAP is to take account of any recommendations you may make about the adequacy of existing funding arrangements, it would be highly desirable for all parties to have the benefit of any ANAO report before negotiations commence,” she said.

Senator Cash took aim at Attorney-General Mark Dreyfus for shifting the onus onto the NT government and claiming the territory was responsible for administering the NLAP funds.

“With respect, if that is the case, that is all the more reason for an audit,” she wrote.

“If NLAP arrangements are such that the administration of Commonwealth funding is done at arm’s length, as the Attorney-General appears to contend, then the governance provisions in the intergovernmental agreement that allow the Commonwealth to appropriately monitor expenditure (and respond to any misuse of Commonwealth funds) are all the more important.”

NAAJA conducts the lion’s share of Indigenous legal cases in the NT, where crime has increased by double digits in the past year. The organisation employs 200 workers across Darwin, Palmerston, Katherine, Alice Springs and Tennant Creek.

The Australian understands the NT Commission Against Corruption is investigating the allegations, many of which have come to light in a Federal Court case filed by Ms Atkins, who alleges she was fired from NAAJA after discovering the corrupt conduct of Ms Evans and Ms Rosas.

Ms Atkins claims Ms Rosas appointed her friends to senior positions within NAAJA, and requested her pay be given to her on a credit card so as not to alert the tax office and threaten her Centrelink pension.

Along with making the discreet $20,000 payment to Ms Rosas, Ms Atkins alleges Ms Evans left her mobile phone in offices to record unsuspecting colleagues, and bullied NAAJA workers.

NAAJA denies allegations that Ms Evans and Ms Rosas engaged in deceptive conduct, and claims Ms Atkins was fired for forging Ms Rosas’ signature on her contract extension document, securing her position as CEO – and its $350,000 salary – for a further five years.

NAAJA has also alleged Ms Atkins used company funds to buy nine vehicles, flights, clothes and artworks. Ms Atkins denies all allegations of misconduct.

Ms Rosas and Ms Evans continue to work for NAAJA.

Sources believe NAAJA will spend up to $1m on the trial, after it recruited global firm King & Wood Mallesons to represent them.

The matter is scheduled for trial from October 23.