North Stradbroke Island Minjerribah gripped by bitter finance fight

The idyllic island of North Stradbroke is gripped by a bitter stoush pitting Indigenous leaders against each other over allegations of unpaid superannuation, a lack of transparency and serious financial risks relating to $9m in taxpayer-funds grants.

Jackie Trad, Queensland deputy premier at the time, shakes hands with Cameron Costello at the Quandamooka land handover ceremony on Stradbroke Island, Minjerribah in December 2019. Picture: Jack Tran

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The idyllic island of North Stradbroke is gripped by a bitter stoush pitting Indigenous leaders against each other over allegations of unpaid superannuation, a lack of transparency and serious financial risks relating to $9m in taxpayer-funded grants.

In a messy fight on the southeast Queensland island, also known as Minjerribah, traditional owners are locked in a struggle over the control of the Quandamooka Yoolooburrabee Aboriginal Corporation, responsible for spending $9m in grants from the former state Labor government to transition the local economy from sandmining to tourism.

Leaked internal documents reveal the QYAC board has split into two factions, one led by chairman Cameron Costello – a Brisbane 2032 Olympic and Paralympic Games committee member, close to former Labor deputy premier Jackie Trad – and the other including Yes23 campaign director Dean Parkin.

Tensions boiled over at a fiery board meeting in February when Mr Costello allegedly used his casting vote to end chief executive Stephen Wright’s contract weeks early, blocking Mr Wright’s attempts to air a critical financial review raising serious concerns about corporation governance.

A petition of 165 traditional owners on the island in March called for the public release of the financial review, conducted by RSM and commissioned by QYAC’s human resources lawyers, Cornwalls, at the request of Mr Wright.

Dean Parkin. Picture: Lyndon Mechielsen

The RSM review and Cornwalls advice, obtained by The Australian, uncovered 15 financial and governance issues in QYAC’s books including five deemed “high risk”, such as late superannuation payments with an estimated liability value of more than $700,000, and “discrepancies” in taxpayer-funded grant balances.

There also were concerns raised about QYAC management being denied transparency over the financial operations of a wholly controlled entity, Minjerribah Camping, which runs glamping and campsites on the island.

This month the Queensland Audit Office criticised state govern­ment departments for “complex and inconsistent” govern­ance arrangements and a lack of oversight over the $8.7m in government grants awarded to QYAC between 2016 and 2021 under the Minjerribah Futures transition strategy spearheaded by Ms Trad. The Australian understands local Liberal National Party MP Amanda Stoker will raise concerns in state parliament on Thursday about the financial issues and call for a fresh audit.

In April, board members including Mr Parkin, Rosemary Bell, Karen Rylance, Keryn Ruska and Earl Morgan wrote to the regulator, the Office of the Registrar of Indigenous Corporations, calling for a new general meeting of members and the release of the financial documents.

“The issues listed in the request stem from a long-held frustration from QYAC members about the lack of transparency from the leadership of the organisation and deep concern about QYAC’s (and Minjerribah Camping’s) financial position and performance,” the letter states.

Mr Costello disagreed and wrote to ORIC, prompting the regulator to agree the matter should be sorted out by the board.

“In my view, it would be unreasonable to put the resolutions to a general meeting as it is a waste of resources and contrary to the interests of the members as a whole,” ORIC’s James Rose wrote this month.

“All resolutions clearly indicate members hold concerns about what appears to be a lack of transparency to the membership, whether perceived or otherwise. Directors are elected by the members of the corporation … if members feel directors are not performing, then they have a right to vote for different directors.”

Mr Costello. Picture: Dan Peled

Mr Costello told The Australian the RSM report was unauthorised by the board and the risks were “overstated”.

However, he said he had commissioned a forensic accountant, Michael Wilkes, to investigate the organisation’s finances, and a separate entity, Vincents, was dealing with the superannuation issue.

Mr Costello said once the Wilkes report was finished, it would be released to the regulator and members.

“We’re confident that there’s definitely never been any misappropriation or any fraud or anything. It’s just a matter of if there’s things that need to be tidied up or fixed up, we’ll do that and just rectify it,” he said.

All of the financials were audited, transparent and available on QYAC’s website, he said.

He said the $9m the government had given in grants to QYAC had been properly spent, including on a soon-to-open cultural centre, the campgrounds, recreational trails through national parks, a ranger program, and public artworks.

QYAC acting chief executive Kate Healy started on March 3 and said she had seen no evidence of financial irregularities since then. A separate workplace investigator has been commissioned to investigate the workplace and governance complaints, she said, but only half of the directors had agreed to be interviewed.

“Chris Ronalds AO SC was engaged to undertake a review of the workplace and governance complaints that had been made,” Ms Healy said.

“She invited all directors (along with a number of employees) to participate in one-on-one interviews (both in a face-to-face and virtual environment). Unfortunately, of the 10 directors only five spoke with Ms Ronalds.”

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