Wyatt urges shutdown of Indigenous Procurement Policy over fraud concerns

Former Aboriginal affairs minister Ken Wyatt has called for the Indigenous Procurement Policy to be shut down if fraudulent practices continue. He claims some companies are exploiting the program by partnering with Indigenous entities for financial gain. Wyatt described these practices as 'black cladding,' where Indigenous partners are used for contractual benefits without real involvement. He cited examples where Indigenous elders were paid without meaningful roles in the business. A study found that a significant portion of contracts went to businesses with unclear Indigenous ownership. Wyatt emphasized that genuine Aboriginal enterprises are being disadvantaged by these practices. He argued that the policy needs urgent reform or closure to prevent further misuse. The issue highlights broader concerns about the effectiveness and integrity of government programs aimed at supporting Indigenous businesses.

The issue raises concerns about the misuse of government programs intended to support Indigenous enterprises, affecting their fair access to contracts.