The Registrar of Indigenous Corporations, Anthony Beven, has placed the Southside Housing Aboriginal Corporation under special administration for the second time. It was previously under special administration from November 2004 to January 2006.
The corporation, which is registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act), provides affordable housing for Aboriginal and Torres Strait Islander people in the Australian Capital Territory. It currently owns and manages seven properties located in various suburbs around Canberra.
In June 2013 the Registrar completed an examination of the corporation’s books which identified numerous matters of serious concern. These included a lack of adequate books and records, a failure to collect rental arrears, the non payment of debts, and poor upkeep of the houses. The examination also found evidence that the corporation may have been insolvent.
On 15 August 2013 the Registrar issued a compliance notice to the corporation requiring the directors to take immediate action to resolve these and other matters. As the directors failed to take any action the Registrar issued a show cause notice to the corporation on 28 November 2013 warning that it could be placed under special administration.
The directors did not provide a response and, as a result, the Registrar has placed Southside Housing Aboriginal Corporation under special administration.
Mr Frank Lo Pilato and Mr Tony Grieves from RSM Bird Cameron in Canberra have been appointed as the joint and special administrators until 31 May 2014.
‘This is the second time that this corporation finds itself under special administration,’ said Mr Beven. ‘The corporation has been poorly managed yet again, and it is unacceptable that its houses have been allowed to deteriorate to such a state that some are now no longer habitable.’
The special administrators will determine the future of the corporation and its houses. They will also report to the Registrar on whether there have been breaches of any legislation, including directors’ duties.
(02) 6146 4743
18 December 2013
Frank Lo Pilato (02) 6247 5988
Tony Grieves (02) 6217 0395