Independent senator Lidia Thorpe has questioned former Minister for Indigenous Australians Ken Wyatt on his backing of a privately owned Indigenous business certification service, asking why the work should not remain with Aboriginal community-controlled organisations.
The exchange took place at a Senate inquiry into racism in Australia in Boorloo/Perth on Monday.
Senator Thorpe challenged Mr Wyatt on his decision to back Nyoongar businessman Gerry Matera, the architect of the Indigenous Business Integrity Register, or IBIR.
"Do you think that Indigenous business certification should sit with community-controlled organisations like Aboriginal business chambers?" Senator Thorpe asked.
Senator Thorpe emphasised her point by probing Mr Wyatt's support for a private operator competing against community-run, not-for-profit Indigenous business chambers that exist across the country and provice Indigenous businesses with certification.
IBIR charges fees and uses artificial intelligence, accountants and forensic auditors to examine Indigenous business ownership, management and finances.
The register says it was created to combat black cladding, where businesses pose as Indigenous-owned to secure contracts, while non-Indigenous partners control the power and profits.
Many Indigenous business leaders argue verification should remain with Aboriginal organisations, relying on cultural authority and community knowledge rather than on company paperwork, private auditors, or artificial intelligence.
National Indigenous Business Chambers Alliance chair Naomi Anstess has previously said the intention behind stronger integrity measures was valid, but warned Aboriginal identity verification should not be outsourced or commercialised.
Mr Wyatt initially told the inquiry Senator Thorpe's question was "not really pertinent" to its terms of reference, but said he was happy to respond.
He said he joined IBIR out of concern for black cladding and the lack of safeguards for Indigenous people in joint ventures.
"It is about the checks and balances," Mr Wyatt said.
"It is about the number of young Indigenous people I now see struggling financially because their joint venture partner has stripped them of all of their assets."
Mr Wyatt said some Indigenous partners had been left owing substantial amounts to the Australian Taxation Office and carrying responsibility for the liquidation or winding up of companies.
"Yet they were never really decision partners in that joint venture," he said.
He said black cladding needed to be addressed through the Corporations Act, Australian laws and the Australian Securities and Investments Commission.
"There is the element of seeing Aboriginal money as easy money, and that's the reason I have aligned with Gerry," Mr Wyatt said.
Senator Thorpe said the issue was relevant to the inquiry because black cladding contributed to racism.
Mr Matera's company EON Protection recently lodged a Writ of Summons in the Western Australian Supreme Court against The Waalitj Foundation Limited, an Aboriginal-controlled not-for-profit organisation, alleging it breached its duties by failing to inform his company about certain contract opportunities.
