Mercury (Hobart)

Mav centre of alleged fraud charge

- TIM CLARKE

ONE of Australia’s biggest Aboriginal corporatio­ns is alleging that former Glenorchy Council alderman Steve ‘Mav’ Mavrigiann­akis ripped it off to the tune of hundreds of thousands of dollars.

The West Australian reports that the alleged fraud included Mr Mavrigiann­akis claiming accommodat­ion expenses while staying at his mother’s flat and getting his bosses to buy him a second $60,000 company car.

The former alderman the claims.

The Gumala Corporatio­n, which manages millions of dollars of iron ore royalties from Rio Tinto on behalf of the Banyjima, Innawonga and Nyiyaparli peoples, dumped Mr Mavrigiann­akis as its chief denies executive in 2015 after years of complaints about financial management.

The Mercury newspaper reported the claims last November.

According to new reports, the corporatio­n is using a Federal Court action to try to recoup money it says Mr Mavrigiann­akis deprived them of in his years of stewardshi­p — with their statement of claim revealing a series of alleged rorts.

One involved claims he paid for dozens of expensive meals at some of Perth’s top restaurant­s on his business credit card, before then claiming the same meal on expenses.

And it is alleged Mr Mavrigiann­akis got the corporatio­n to buy him a $60,000 Lexus to drive while in Perth, when he already had the use of a $65,000 Toyota Kluger at his base in Tom Price. Lawyers for Gumala also claim a travel and perks policy that Mr Mavrigiann­akis wrote for himself in 2012 — a year after a government inquiry found many financial irregulari­ties within the corporatio­n — was designed “to provide an improper benefit” to the chief executive. This was on top of an annual salary of $399,000.

In total, the court action says, Gumala incurred losses of $235,000 in travel and other expenses, while more than $100,000 in credit card charges could not be accounted for.

The West Australian reported that Mr Mavrigiann­akis has yet to file a defence but said after his removal that “there’s been no theft, no embezzleme­nt, no impropriet­y”.

A case management hearing is scheduled next week.

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