Regret over good faith call

Former housing director breaks silence on home sales

THE former director of Downs Aboriginal and Islander Housing Company has spoken of his regret an agreement entered into in good faith did not save 37 houses from being sold off.

Les Suey was appointed as DAIC director about 2015, and oversaw several desperate decisions to shore up funding for indigenous housing.

Mr Suey explained the extraordinary measures DAIC pursued since it lost its Federal funding when the Aboriginal and Torres Strait Islander Commission was abolished in 2005.

“From this time, the only income DAIC received was the rental payments on the properties,” Mr Suey said.

“Because of DAIC’s community housing aims, those rents were under market value.”

Rents didn’t cover maintenance costs and the company went into voluntary administration about 2005, with management handed back to the then-board in 2015.

Various programs and schemes were consulted including Work for the Dole to cover maintenance, to no avail.

Mr Suey said banks were also approached for funding.

Downs Housing approached DAIC in 2015 with a joint venture offer, outlining an agreement it would redevelop certain properties and share profits between the two entities.

“The board made a decision to enter the joint venture based on the expectation that it would ensure the viability and growth of DAIC,” Mr Suey said.

“It was thought to be an opportunity that would allow DAIC in the longer term to increase housing stock, to be financially secure and to provide a better standard of homes for our people.

“One aspect of the joint venture was that management was in the hands of the developer.”

He said works never materialised and profits were not delivered to DAIC.

“By the time the board, or at least most of its directors, realised that the joint venture had become a disaster, they had no power to do anything about it,” he said.

“In the absence of any financial gain from the joint venture and up until title was transferred, DAIC was still trying to meet its shortfall in expenses by selling undeveloped property. The directors ... made a decision for DAIC to be part of the joint venture in good faith.

“They believed that it would be of benefit to not only the tenants but the entire community.

“As a director since about 2015, I want to say sorry that it did not come to fruition.

“I apologise for the hurt and sorrow that has been caused to the elders and all other tenants affected by the tragedy of losing their homes.”

He said he never personally received any funds from the joint venture, or the developer.