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Thursday 1 May 2003, Media Release

NSWALC RESPONSE TO AUDITOR GENERAL'S REPORT

The NSW Aboriginal Land Council had welcomed a satisfactory andn unqualified audit from the NSW Auditor General, tabled in Parliament today.

Chairperson of the NSW Aboriginal Land Council, Les Trindall, said that while the Council accepts responsibility for the problems addressed by the Auditor General, it has already made decisive steps to address the issues raised in the report.

Chairperson Trindall said that the implementation of new and tighter rules and regulations which have resulted from the amendments to the NSW Aboriginal Land Rights Act in October last year, will also assist NSWALC in addressing issues relating to corporate governance, budget management and the accountability of Councillors and office bearers.

Moves by NSWALC to address issues raised in the report include stringent monitoring and control of administration expenditure, a complete overhaul of the NSWALC tendering processes and decisive moves to recover money from past mortgage losses.

Chairperson Trindall said that the Council also initiated an organisational review and cost reduction assessment through Hawkless Consulting in a bid to enable the Council to overcome re-occurring problems and enhance NSWALC's ability to deliver its core functions. The review has now been completed and Council is currently looking at ways of implementing the recommendations under the current budgetary restrictions.

Chairperson Trindall said last year was a difficult year for NSWALC with a change in Council office bearers and the September 11 terrorist attack which de-stablised the world economy, dramatically effecting NSWALC's Investment Fund.

"In regard to the Investment Fund, although the international financial markets are still very unstable, it now stands at well over the statutory level of $485.3 million, at $493 million. However, I must reiterate that although the fund did briefly fall below the statutory level, it was the result of an extraordinary world economic forces and NSWALC was not alone in being affected by these conditions," Chairperson Trindall said.

"Since September 11, we have reduced our expenditure to essential payments only and implemented a hiring freeze, which although financially necessary, has put added pressure on administration. Controls which have resulted from the amendments to the Act will also assist NSWALC in future in monitoring expenditure against budgets.

"The Auditor General's concerns over the Council's mortgage lending in the late 90s are also being addressed. The Market Street property in Wollongong, formerly owned by Kestral Properties, is now being valued to be put up for auction in a bid to recoup some of the losses.

"The re-surfacing issue of Rural Properties management has now been addressed with the appointment of specialist farm managers, Riverina Farms, to oversee the properties and implement a management plan. Although the drought has hampered financial progress on this front, we are confident that in the future the Rural Properties will begin to bear finance rewards for NSWALC.

"In relation to the issue of Councillor's debts, these are now being repaid by the Councillors involved.

"We are working hard with the Department of Aboriginal Affairs and the Minister's office to continue tackle issues of corporate governance," Chairperson Trindall said.