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Legislative Council - Fifty-Third Parliament, Second Session (53-2)
2015-05-05 Daily Xml
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APY Executive

The Hon. K.J. MAHER (Minister for Manufacturing and Innovation, Minister for Automotive Transformation, Minister for Aboriginal Affairs and Reconciliation) (15:00): I seek leave to make a ministerial statement in relation to the governance and financial management of the APY Executive Board.

Leave granted.

The Hon. K.J. MAHER: Members would be aware of concerns about the governance and financial management of the APY Executive Board. Indeed, members have raised this with me as a matter of importance to them, and I thank them for that. The role of the APY Executive Board is to manage land and culture on behalf of traditional owners. The APY Executive Board has a leadership role in the community. However, the board is not responsible for service delivery, such as health and education services. Indeed, the APY Land Rights Act defines the powers and functions of the APY board as:

(a) to ascertain the wishes and opinions of traditional owners in relation to the management, use and control of the lands, and to seek, where practicable, to give effect to those wishes and opinions; and

(b) to protect the interests of traditional owners in relation to the management, use and control of the lands; and

(c) to negotiate with persons desiring to use, occupy or gain access to any part of the lands; and

(d) to administer land vested in Anangu Pitjantjatjara Yankunytjatjara.

I think it is fair to say that progress is being made in improving accountability and transparency for the APY Executive Board. I am pleased to inform members that a new interim general manager of APY, Mr Richard King, commenced in that role on 20 April 2015, following his appointment by the APY Executive Board. Mr King has only been in the position for a short time. However, there have already been a number of significant improvements in the operation and transparency of the APY Executive Board.

Mr King is an Aboriginal man from the Northern Territory with long-term involvement in both the health and justice sectors. He is a tradesperson with building experience, holds a Bachelor of Health Science in health promotion, and is working towards his Master of Public Policy. He is also, I note, an accomplished artist. He has worked at senior levels in the South Australian public sector for the last 13 years, including in Corrections. He clearly has the ability to manage and resolve complicated and high-pressure situations.

In the short term, Mr King is working to resolve some of the more immediate financial issues, for example, ensuring bank reconciliations are performed, enforcing new financial delegation policies and identifying outstanding payments for cattle agistment. Mr King is receiving support and advice on a range of issues from senior staff in state government, and this will continue until the organisation has achieved stability.

As a further demonstration of the intention of the APY to operate in an open and transparent manner, Mr King has agreed to brief members of the Aboriginal Lands Parliamentary Standing Committee regularly to keep them informed of developments on the lands and improvements that are being made. I envisage that this will happen quarterly.

I am also pleased with the way that I have been able to work with the APY Executive Board, and I know that they are committed to continuing to improve their governance structures and financial management and control. I am optimistic that Mr King will be able to continue to make significant improvements, as he has made a commitment to do so. What we need now is for people to give Mr King an opportunity to make change, to give him clear air to make progress, and to make a break with the past and begin rebuilding trust.

The second quarter funding was recently released to APY. This funding was released as a result of APY meeting additional accountability and transparency requirements, and I trust that they will continue to do so. Indeed, Mr King has written to me outlining his commitment to ensure this occurs. He has also advised that one of his priorities is to help guide the upcoming APY elections to a successful outcome.

The nomination period for the election commenced on Thursday 30 April 2015 and closes on Thursday 7 May 2015. Following this election, the government will, in partnership with the APY, progress the recommendations of the Layton Review as already consulted with the APY. My department is currently working on draft legislation, and I intend to progress that legislation over the next 12 months or so. I hope the election will bring new perspectives to the Executive Board, and it is my expectation that members of the board will be provided with training in governance and financial management.

Members would be aware that KPMG have recently conducted a sample audit of APY records to assess financial controls, reporting requirements and compliance with expenditure authorities. The report found there is still significant work to be undertaken. In the interests of procedural fairness, the draft report will be tabled at the next APY Executive Board meeting on 13 May 2015 where APY will be afforded the opportunity to respond, and then a final report will be made. It is my intention to make this report public as soon as possible.

In addition, I am advised that this week a request for tender has gone out to market for two tasks. Firstly, to undertake a forensic audit of the expenditure of all state and commonwealth government funds provided to APY in the year ending 30 June 2015. Secondly, to make necessary changes to APY's financial management system to ensure that sufficient policies, procedures, controls and processes are in place from 1 July 2015 so that state and commonwealth government funding expended in the 2015-16 financial year and beyond is according to the requirements of the relevant funding agreements.

The state will not release third and fourth quarter funding until APY can demonstrate that their governance and financial systems and controls have improved. The commonwealth have recently taken the practical step of joining with us in placing tighter financial controls on APY and have also decided not to release additional funding until this can be demonstrated. My office and I have been in close contact with minister Scullion and his office, and I understand that previously-committed funding will be provided, but new funding will not be provided at this stage.

Although I disagree with many of the actions of the federal Liberal government in my other portfolio areas, I appreciate the relationship I have developed with Senator Scullion on many Aboriginal affairs matters. His commitment to reach an agreement regarding municipal and essential services delivered a positive result for Aboriginal communities in South Australia and is an example of what working constructively together can achieve.

Our two governments are also working together on supporting the new Mai Wiru freight service delivering fresh fruit and vegetables from Adelaide direct to the lands at cheaper prices than before, and upgrading 210 kilometres of the main access road between the Stuart Highway and Pukatja. Senator Scullion and I will be working closely together to improve the accountability and transparency of the APY, as well as finding opportunities to increase economic and employment opportunities for Anangu and deliver the most effective services.

The former minister for Aboriginal affairs and reconciliation wrote to the Auditor-General to ask that he consider conducting an audit of the APY accounts pursuant to the APY Act. To maintain the integrity of the report, I understand it is not common practice for the Auditor-General to publicly canvass the precise nature of his investigations, but I am advised that the Auditor-General's Department is giving regard to government actions in response to the APY matter in the current audit program, recognising the government's responsibilities as set out in the APY Act.

The state is also working with APY to reduce their reliance on lawyers and their legal costs. Obviously, there will still be occasions where APY need to seek legal advice, but not for many of the day-to-day matters that have resulted in exorbitant legal bills.

Members should also be aware that I am still not opposed to appointing an administrator. However, this is not my first preference. Indeed, if improvements are not made, the appointment of an administrator will have to be considered.

A number of a Anangu I have spoken to on this topic have changed their mind on the appointment of an administrator. Many did not realise that following the appointment of an administrator, the APY Executive Board would be suspended with an administrator taking on all their powers. The ability to appoint an administrator has been an important tool in ensuring that the transparency reforms undertaken by the APY Executive Board were followed through and maintained. I am pleased that due to the actions of the APY Executive Board, the government has not yet needed to appoint an administrator.

I prefer to work with Anangu. I believe we need to give the new general manager and, shortly, the newly-elected board, the support they need to create positive change for people living on the APY lands. I want to see, as I am sure do other members in this place, and in the other place, an APY Executive that is transparent, committed and responsible. I believe we have made some significant steps forward in creating the environment for that to occur, and I look forward to further progress being made.

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