Records wiped at 4K1G

FINANCIAL records for a Townsville Indigneous corporation were wiped from computers before governmentappointed administrators assumed control of the failing enterprise.

The watchdog took over Townsville’s Indigenous 4K1G – Too Deadly radio in June after it identified “serious concerns” about the station’s solvency and an “array” of alleged breaches of legislation and the corporation’s rule book.

Sources told the Bulletin special administrators informed the community that financial records had been wiped from computers before they took over at a meeting on Thursday where stakeholders were briefed about the station’s finances.

Media were banned from the “tense” meeting where, the Bulletin understands, a former employee expressed serious concerns about alleged discrepancies in the corporation’s finances.

Frustrated community members said they wanted to know what went on behind the scenes to land the organisation in such dire financial straits as further concerns were aired to the meeting about missing documents, claims of bullying and a series of signed contracts with incorrect and dated ABN numbers.

The Bulletin understands the Townsville Aboriginal and Torres Strait Islander Corporation for Media recorded two years of consecutive financial loss and had accumulated significant liabilities before administrators took over.

Financial records showed the corporation owed more than $100,000 to the ATO or in superannuation and that it was only kept afloat in 2019 by a $305,951 loan from Indigenous Business Australia.

4K1G will remain under the control of administrators until at least December after the Office of the Registrar of Indigenous Corporations extended the special administration period, originally scheduled to finish in September.

Administrators said they needed more time to strengthen the financial position which was described as “perilous” before returning control to members.

In a public statement, special administrator Neil Michel said his focus was to attract new talent to improve the station’s quality and put it in a position where it could generate income.

Mr Michel said the underlying cause for the financial problem was the loss of knowledgeable staff and a lack of investment in people.

“To fix these issues we need to invest in people, quality programming, equipment and the sources of funds that will pay for these,” he said.

Since his appointment, Mr Michel renegotiated a funding deal with the National Indigenous Australians Agency, which is dependent on reporting and performance requirements.

According to property records, the corporation’s Sturt St building has been put up for sale with agents asking for offers of more than $1m for the two level office block in the Townsville CBD.

The corporation remains under special administration until December 17.