Chapter 1
The terms of the inquiry
Background to the inquiry
1.1
On 14 May 2009, the Senate referred to the Finance and Public
Administration References Committee for inquiry and report, the relationship
between the Central Land Council (CLC) and Centrecorp Aboriginal Investment
Corporation Pty Ltd (Centrecorp). The Senate originally asked the committee to
report on the inquiry by 11 August 2009, but extended the reporting date on
several occasions at the request of the committee. On 8 September 2009, the
Senate resolved that the committee's report be tabled by 26 November 2009.
1.2
Under the terms of reference, the committee must inquire and report
upon:
-
the financial and management relationship between the Central Land
Council and Centrecorp, including (without limitation) any equitable
relationship between those entities,
-
whether taxpayers' funds have been paid or transferred to Centrecorp and
how those monies have been treated in the accounts of the Central Land Council
and Centrecorp,
-
the nature and extent of Centrecorp's business activities,
-
Centrecorp's sources of revenue,
-
the beneficiaries of Centrecorp business and any additional revenue it
receives,
-
the nature and extent of Centrecorp disbursements to any charitable
trusts or like entities,
-
the extent to which any Centrecorp beneficiaries and the Central Land
Council are informed of Centrecorp's business activities,
-
how
Aboriginal Australians living in the Central Australia region benefit from
Centrecorp's business and charitable operations, and
-
all other matters considered necessary by the committee.
1.3
The Senate stated that the committee must hear evidence inter alia
from:
-
the Central Land Council,
-
the Auditor-General, and
-
Centrecorp.
Conduct of the inquiry
1.4
The inquiry was advertised in The Australian, the Centralian
Advocate and the Alice Springs News as well as through the Internet.
The committee invited submissions from the Commonwealth Government and
interested organisations and individuals.
1.5
The committee received seven submissions and one supplementary
submission. A list of the individuals and organisations that made public
submissions to the inquiry is at Appendix 1, and a list of other information
authorised for publication is at Appendix 2.
1.6
The committee also requested and received a large quantity of financial
documentation from the CLC, Centrecorp and Yeperenye Pty Ltd. On the basis of
the information contained in those documents, the committee decided that on
balance it was not necessary to hold public hearings for the inquiry. In the
interests of greater transparency and public disclosure, the committee decided
to publish this material in a redacted form, which is available at: www.aph.gov.au/Senate/committee/fapa_ctte/central_land_council/additional_info/index.htm.
Acknowledgement
1.7
The committee thanks those organisations and individuals who made
submissions and assisted with this inquiry.
Structure of the report
1.8
Chapter 2 of this report outlines the background to the inquiry, and
briefly outlines the operation of each of the CLC and Centrecorp.
1.9
Chapter 3 considers the financial and other management information provided
by each organisation, and assesses this information under the heads of each term
of reference for the inquiry. The committee concludes that the documents
provided by the CLC, Centrecorp and related entities do not, on their face,
disclose any inappropriate behaviour on the part of either organisation, or
indicate an improper relationship between the two organisations.
1.10
However, the committee remains concerned about the transparency of both
organisations, and Centrecorp in particular, due to their reluctance to
disclose basic financial and management information to the committee. The
committee reiterates the transparency concerns identified in the two Office of
Evaluation and Audit (OEA) reports of January and November 2008,[1]
and notes that while Centrecorp claims to have addressed some of the issues
identified by the OEA, it failed to provide any evidence to substantiate these
claims.
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