Roebourne Aboriginal group goes into administration
A majority group company of Roebourne-based Aboriginal orgnisation the Ngarluma Yindjibarndi Foundation Limited has gone into voluntary administration, with a $2.5 million tax debt on its books.
In a statement, NYFL said the board had voted earlier this month to appoint insolvency firm Cor Cordis as administrators over the orgnanisation’s NYFL Limited and NYFL Trust entities to oversee a restructure after the debt caused cash flow issues.
However, chief executive Bruce Jorgensen said the board anticipated the sale of some of the organisation’s $10 million property portfolio would be sufficient to pay back the tax debt — which he said the group under its previous management had not been able to pay — within two to three months.
“The current financial situation is not sustainable and now requires a ‘reset’ of the organisation in order to address the tax debt in a more considered way and to restructure the organisation to a more solid foundation,” he said.
“While this is a difficult and uncertain time for us, it will allow us to regain our financial stability and continue to build a strong future for our members.”
Cor Cordis administrator Jeremy Nipps said NYFL was “asset rich, cash flow poor” but their preliminary review indicated the group had enough property to pay off creditors.
He said the restructure could lead to some job losses — with several staff let go last week — and the closure of some commercial ventures, but administers were aiming to minimise the impact on the community.
“It will be business as usual, so we’re continuing to run NYFL’s operations and there is no change to those at the moment,” he said.
“There has been some rationalisation of staff, but those are really centred around the operations where in the immediate term NYFL can’t sustain funding.”
“It needs to realign and readjust a few expenses that are occurring, and then once it’s had that reset, generating more cash from its property portfolio, it will then be a in position to support the community with future employment.”
NYFL has some 1800 members, about 50 local staff and and runs a number of ventures in the City of Karratha area, including the contract for Cossack’s tourism and promotion, the Ngurin Cultural Centre, Roebourne’s general store and Ieramugadu Cafe, the WY Employment Project and popular Pilbara pub the Whim Creek Hotel in partnership with Ngarluma Aboriginal Corporation.
All of the organisation’s key service delivery contracts are continuing uninterrupted at this stage.
The decision to put NYFL Limited into administration will not impact NYFL’s nursery project or joint ventures with NRW and Karratha Village.
Get the latest news from thewest.com.au in your inbox.
Sign up for our emails