The South West Aboriginal Land and Sea Council has called for $21 million in compensation after an investigation found Equity Trustees, as trustee of the Noongar Charitable Trust, had made a major property purchase at an inflated price without undertaking sufficient due diligence.

In response to the findings issued on Tuesday, SWALSC noted on Wednesday that Equity Trustees purchased the El Caballo properties in Wundowie for $12 million in 2020, and said the body "subsequently spent $5 million of Trust funds on maintenance, lawyers, and consultants".

The Land Council said the Trustee sold the El Caballo Lifestyle Village for $4 million in 2023 and tried and failed to sell the El Caballo Resort, which SWALSC described as being "in a severely dilapidated condition (and) probably worthless".

"There is therefore a loss of $13 million on the purchase and resale of the properties. In addition, if the funds had remained in the Trust's investment pool they would have grown by $8 million, so the Trust has lost $21 million through this episode," the Land Council said.

The Noongar Charitable Trust supports Aboriginal Community Controlled Organisation projects that offer direct benefit to the Noongar community.

In February 2023, SWALSC referred the purchases and associated expenses to the Western Australian Charitable Trusts Commission, requesting an investigation.

In his report, the Ombudsman of Western Australia recommended Equity Trustees compensate the Noongar Charitable Trust estate for the loss that occurred due to its breach.

SWALSC chief executive Vanessa Kickett said on Wednesday that the Land Council's focus "has been to shine a light on this injustice for our Noongar People".

"Our Noongar People must be compensated for this financial loss," she said.

"This is not a matter for negotiation. Equity Trustees must make good the loss in full.

"Equity Trustees must pay $21 million in compensation for the loss it has caused our Noongar People by their imprudent purchase of the El Caballo properties."

The Ombudsman's findings centred on two key transactions: the $12 million purchase of the El Caballo properties as part of a planned social housing initiative, and a subsequent $1.5 million "working capital" payment to the Aboriginal Housing Recovery Centre Limited (AHRCL) to refurbish the properties.

The Commission ultimately found both transactions were not in the best interests of the Noongar community as defined in the trust deed.

Retrospective valuations commissioned during the investigation placed the properties' combined market value at just $5.9 million at the time of purchase; more than $6 million below the price paid.

The Australian Charitable Trusts Commission investigation concluded that it was "satisfied that the following findings are reasonably open to it to make" before stating: "EQT acted imprudently in breach of its duties by not undertaking sufficient due diligence, including by obtaining an independent valuation, prior to the purchase of the El Caballo properties; and as a result of this breach, the subsequent distribution to AHRCL of $1.5 million as working capital for the refurbishment of the El Caballo properties was not a distribution made in the best interests of the Community."

"Accordingly, the Commission is of the view that EQT breached its duties as trustee of the Noongar Charitable Trust," the Commission said in its final report.

The Commission noted that the liability of a trustee for a breach appears to be settled at law.

"EQT must compensate the Noongar Charitable Trust estate for the loss that occurred due to its breach. Accordingly, the Commission has provided EQT to 15 September 2025 to provide submissions as to the appropriate restoration sum," the Commission found.

"SWALSC have also been provided with a further opportunity to make submissions on this point, however, the Commission notes that comprehensive submissions have already been provided by SWALSC on the issue of loss."

The Charitable Trusts Commission also noted that throughout the its investigation "various concerns" have been raised by community members and on the information at hand about the conduct of current and former office-holders of SWALSC.

"The Commission has determined that information obtained during its investigation warrants a proactive referral to ORIC (the Office of the Registrar of Indigenous Corporations), and this will be undertaken once this report is provided to the Attorney General," it stated.