Rescue attempt for Joorook

An attempt is being made to rescue the embattled Joorook Ngarni Aboriginal Corporation in Wyndham.

Former corporation chief executive officer Brian Chapman and accountant Peter Pearce have taken over the reins.

The partners have stepped in an attempt to safeguard their large financial investment in the former Tuckerbox Supermarket.

In a media release the corporation stated: "The seemingly inevitable closing down of Joorook Ngarni Aboriginal Corporation, has been temporarily avoided by a rescue plan devised and implemented by ATSIC."

It stated that the Joorook Ngarni Board would cooperate with the pair in the attempt.

"Previously it had been determined and widely acknowledged that the finances, accounting records, policies and procedures and use of assets at Joorook Ngarni were in a state of almost complete disarray."

ATSIC was worried because it saw its huge financial investment in Joorook Ngarni at risk.

Chapman and Pearce were worried because they saw their large investment of about $60,000 already spent on the (now) idle supermarket at risk because, if Joorook Ngarni closed down the Wyndham market would decline substantially and cause Chapman and Pearce to cancel their plans to re-open the supermarket.

The statement said: "The Board of Joorook Ngarni whole-heartedly agree and thank ATSIC for the support they have as a result of their (the board's) request to ATSIC for help with this serious situation."

Employees and members of Joorook Ngarni were worried because it introduced uncertainty and anxiety about their jobs and the future for Aboriginal people in Wyndham.

The rescue plan lists specific tasks to be completed, which, if successfully completed, will persuade ATSIC not to: suspend grant funding or appoint a grant controller to protect and recover ATSIC's investment.

However, failure to complete those tasks and demonstrate to ATSIC that Joorook Ngarni has been 'fixed up' and will continue to operate properly, for the benefit of all Aboriginal people, would persuade ATSIC to 're-visit' the situation and make the (almost) inevitable hard decisions that would be fatal for Joorook Ngarni Aboriginal Corporation and negative for Wyndham.

ATSIC has also released a media statement saying that it is currently establishing Joorook Ngarni's financial position.

The statement says: "However, this is proving difficult due to the poor standard of accounting at Joorook Ngarni - which ATSIC identified from the results of a recent independent review.

"As a result of the review findings, ATSIC immediately implemented a recovery action plan.

"Part of the action plan was hiring an acting CEO and an acting accountant, who are currently managing the CDEP wages - for an initial period of three months."

The action plan also includes hiring permanent staff - CEO, accountant, CDEP coordinator and a bookkeeper, ideally by November.

ATSIC will instruct the Joorook Ngarni Committee (community representatives) to follow a rigorous recruitment process to protect against further problems at the organisation.

This timing of this recruitment is dependent on the progress made in developing appropriate internal accounting processes, as well as the development of a formal policies and procedures manual for the organisation - which will assist the future management of the organisation > to run Joorook Ngarni effectively and accountably.

ATSIC is keen for the recovery action plan to be completed as soon as possible - hopefully by November.

The release states: "It would be inappropriate for ATSIC to make further comment until this investigation (into the organisation's records and financial position) is completed."