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Wednesday 21 April 2004, Media Release

NSWALC REFERS CORRUPTION ALLEGATIONS TO I.C.A.C

The NSWALC has referred fresh allegations of corruption involving Aboriginal land to the NSW Independent Commission Against Corruption.

The allegations have been uncovered since the state land council appointed an administrator to Worimi Local Aboriginal Land Council in January this year. Worimi covers the Port Stephens-Raymond Terrace area north of Newcastle.

· In September 2003, the Local Aboriginal Land Council purchased the property and partial operations of an amusement park at Williamstown. The Local Aboriginal Land Council paid in excess of the independent valuation in breach of Section 38 of the NSW Aboriginal Land Rights Act 1983. The state land council did not give written approval for the purchase as required under the Act. According to the administrator the amusement park has significantly contributed to the Local Aboriginal Land Council's loss in excess of $720,000 for the seven months to 31st January, 2004.

· In August 2003 Worimi Local Aboriginal Land Council entered into a contract to sell certain properties and were advanced $2,000,000 of the proposed sale price. This transaction contravenes the NSW Aboriginal Land Rights Act because the necessary approvals were not obtained from the state land council. The proposed sale was vetoed by the Local Aboriginal Land Council members at a meeting in December 2003.

· An unsecured loan for $300,000 was advanced to a non-Aboriginal person in July 2003 in contravention of Section 94 of the Aboriginal Land Rights Act. The borrower defaulted on the loan and Worimi Local Aboriginal Land Council's Administrator has commenced recovery action. The borrower was associated with a development group which has sought to enter into a joint venture arrangement with Worimi Local Aboriginal Land Council.

· Worimi Local Aboriginal Land Council purchased an "adventure tourism" business at Port Stephens for $60,000 in August 2003. There is no evidence of a formal assessment of this business proposal. The business has incurred significant losses since it was acquired.

Section 40D of the NSW Aboriginal Land Rights Act 1983 requires state land council approval before local land council property can be sold or mortgaged. Worimi Local Aboriginal Land Council has at this stage not received approval for any of its current plans to sell and mortgage its land assets.

NSWALC chief executive, William Johnstone, said today that the state's peak Aboriginal land body has received a number of applications for land disposals by local land councils.

"Many developers are interested in a fair outcome for their Aboriginal partners, but some just see the chance to make a quick, easy dollar" he said.

"In one recent case, ownership of Aboriginal land was transferred from community ownership to a family trust which then disposed of the land at bargain basement rates to a joint development partner. Many members of the local land council were unaware of the deal."

That matter involved the Koompahtoo Local Aboriginal Land Council. ICAC started its public hearings into those deals on Wednesday.

"In other cases, developers have targeted individuals in local land councils and promised direct personal benefits such as 'consultancies' or cash in return for supporting their development proposal. Quite often, the return to a local land council is a fraction of what they might negotiate in a more equal and transparent commercial deal."

The recently appointed administrator of the state land council, Murray Chapman, said that one of his tasks was to put in place a framework for development approvals and disposal of land that minimized the risk of rip-offs.

"In the meantime", he said, "anyone who thinks that Aboriginal land and Aboriginal land councils are an easy mark is on notice. Development proposals involving Aboriginal land will be closely scrutinized. Aboriginal land was hard won in this state and we won't allow it to be easily lost."