WA Attorney-General John Quigley. Credit:Philip Gostelow State and federal governments have traditionally been reluctant to properly investigate allegations about the administration of these trusts, which are regularly a big source of dispute and suspicion among Aboriginal communities. WA Attorney-General John Quigley, who ordered the inquiry last year, said this week he had received more complaints about mismanagement in other trusts and warned those responsible for them that they too will face scrutiny. “Because there's hundreds of millions of dollars in native title funds washing through these trusts and there is little independent or transparent accountability,” he said. The inquiry recommended Aboriginal charitable trusts be audited by the Auditor-General.

Central to the drama is a self-confessed “hard-arsed” Perth businessman who continued to play prominent role in the trust after he was banned by Australia’s corporate regulator from managing the affairs of a company. Rodney Charles Carter emerges from the inquiry, authored by deputy state solicitor Alan Sefton, as a complex character with inexhaustible energy and desire to advance the Njamal community. But he is chastised for his naked aggression towards anyone who challenges him. When this journalist wrote about Mr Carter in May this year and his ASIC ban, the twice-bankrupted businessman wasted no time to register his dislike via a series of texts. “You wouldn’t be a dog would you Richard … you are a dog,” was one message. Next came: “You are low life and gutless. Have you ever worked with indigenous people? Guess not.” After that, came this from the white businessman: “You are a bully and a racist.” Then came an accusation The Sunday Age had been paid by unknown parties to travel to Perth and receive stolen documents which happened to be publicly available through the charities commission.

Rodney Carter. The inquiry details stern emails sent by Mr Carter to Njamal community members he believed were not acting in accord with his wishes. In one case, an Aboriginal bookkeeper was told she did not have permission to “bulk mail members in the community unless it is approved by myself and no one else”. “Please understand that I’m doing this as trustee, paying your consultancy,” he warned. Chief among the inquiry’s concerns were: the circumstances of how Mr Carter’s companies came to be appointed trustee in 2016;

a dramatic increase in expenditure from 2016 onwards;

Mr Carter’s continued influence after his ASIC ban in July last year;

$250,000 in reimbursed expenses to Mr Carter’s family company;

and a $1 million investment by the trust in carbon farming projects associated with another director, Andrew White.

In 2013-14, expenditure under a different trustee was $149,000. By 2016-17 under Indigenous Services, expenditure had increased to $2.67 million. The inquiry noted that Indigenous Services was providing a bigger suite of services and seeking to grow Njamal business opportunities. One of Mr Carter’s family companies was contracted by the trust for a fee of $20,000 per month. This rate was not reduced once Mr Carter was banned by ASIC last year from managing or direction a corporation for four years. In addition, the inquiry found the trust was being invoiced more than $240,000 a year for the services of two office staff associated with Mr Carter’s family company. The costs continued to spiral in the 2017-18 financial year, with the Njamal trust spending more than $500,000 on legal expenses. The inquiry also questioned the increase in “sitting fees” for community meetings and “signing fees” paid from the trust to traditional owners to approve mining agreements. More than $620,000 came out of the trust over 21 months to cover motor vehicle costs. The inquiry found potential conflicts of interest, with more than $300,000 going to third-party companies associated with Mr Carter, his family and external business associates.

The Njamal People and Fortescue Metals Group entered into an agreement in December 2011. Credit:Jacky Ghossein The inquiry also found potential conflicts of interests involving past and present directors of Indigenous Services, including Mr Carter, his son Ryan Carter, business associates Andrew White and Greg Parker, and indigenous adviser Wesley Aird. Mr Aird and Mr Parker later resigned as directors amid concerns at Mr Carter’s influence, described in one email as “rogue behaviour”, after his ASIC ban. Companies associated with those directors received $1.25 million from the Njamal trust for professional and administrative services to June 30, 2017. The inquiry also criticised some of the behaviour of the Njamal woman whose complaints sparked it. Sharon Westerman was removed from the board of a mining services company wholly owned by the trust in questionable circumstances.

But she has faced allegations about her management of that company and is fighting stealing as a servant charges in the Perth Magistrates Court next year. Ms Westerman denies any wrongdoing. Mr Quigley has pledged to reform legislation governing charitable trusts, including amending the Act to empower the Supreme Court to remove a trustee when it is satisfied there has been misconduct or mismanagement. Upon receiving the report from Mr Sefton, Mr Quigley said further allegations had been made about attempts by Mr Carter to continue his involvement with the trust. He said these had been referred to ASIC for further investigation. “I have been concerned for some time that some of the communities which these charitable trusts were designed to assist are still disadvantaged,” Mr Quigley said. Mr Carter, who has lodged a defamation claim against the The Sunday Age, strenuously defended himself in the inquiry. He is appealing the Federal Court’s decision this year to uphold ASIC’s ban.

Mr Quigley has accepted one of the inquiry's main recommendations that Mr Carter not be engaged, employed or materially involved in the affairs of any charitable trust until his ASIC ban is lifted. The man whose family company was appointed trustee in May 2016 is praised for his energy and work in advancing the prospects of Indigenous people.