CAAMA debt rearranged and manageable

Media release
Special administration

The Registrar of Indigenous Corporations, Selwyn Button, has today announced the end of the special administration of the Central Australian Aboriginal Media Association (Aboriginal Corporation) (CAAMA).

Special administrators were appointed to the iconic Alice Springs media corporation from 9 March 2020, initially for 4 months. The appointment was extended 6 times.

‘The special administrators have explored a number of options for CAAMA to operate viably and address its significant debts,’ said Mr Button. ‘They have faced many challenges as a result of very poor financial management in the past. The Covid pandemic also complicated the special administration, making it very difficult for them to sell property to alleviate the financial woes.’

The special administrators successfully negotiated with the Australian Taxation Office (ATO) and National Indigenous Australians Agency (NIAA) to restructure CAAMA’s largest debts, pay off all other pre-special administration creditors and bring the corporation back to a viable and sustainable position.  

Before the special administration, none of CAAMA’s 12 remote broadcasting sites were operational. Now 11 are, with 8 (soon to be 9) broadcasting locally-produced content. This is a significant improvement and an important step to rebuilding the confidence of NIAA.  

‘During the pandemic, it has been very important for CAAMA Radio to provide remote communities with accurate, up-to-date news,’ said Mr Button. ‘I’m pleased to know that the special administration has restored trust in CAAMA—both its services and its governance capability.’

CAAMA’s financial position has improved dramatically. It posted a $2.67 million loss for 2019–20. Through improvements to financial controls and oversight they were able to significantly reduce spending. They have also focused on improving revenue generation. The combination of changes has delivered a $0.8 million surplus for 2020–21.

The Registrar will monitor the corporation for the next 12 months.

Background 

See also the previous media releases:

 

MR2122-02