Broad concerns over conflicts of interest, contract integrity and misuse of Indigenous procurement programs have prompted the launch of a new AI-focused, transparency-driven certification register.
The Indigenous Business Integrity Register (IBIR) launched on Thursday and aims to support the ongoing certification work of state-based chambers and Supply Nation in the industry.
The register is based on AI technology and uses external Certified Practicing Accountants and auditors, who manage the integrity of its verification practices, expose systemic weaknesses and prompt appropriate review and regulatory response.
The fee-for-service model enables Indigenous business owners to engage independently with forensic auditors, who operate at arm's length from IBIR administration.
The IBIR was developed by Nyoongar entrepreneur Gerry Matera, with former Federal minister for Indigenous Australians Ken Wyatt AM also on board.
The move comes amid a slew of First Nations heritage verification issues that have clouded the recent positive sentiment across the Indigenous business sector.
"Black cladding is a deceptive practice, which is today so ingrained that legitimate Indigenous businesses are being undermined in an uncompetitive environment," Mr Wyatt told the Indigenous Business Review.
"Millions of dollars intended for our people are being lost to non-Indigenous companies.
"As an Indigenous business community, we have an opportunity to dismantle this unethical practice and ensure that authentic Indigenous businesses benefit from Indigenous Procurement Policies."
IBIR said it entered the market with goodwill and did not intend to discredit legitimate Aboriginal companies, state-based Indigenous business chambers or Supply Nation, which has 6000 'certified' First Nations suppliers.
"Our objective is to protect the integrity of Indigenous procurement initiatives by ensuring benefits reach genuine Indigenous enterprises and communities," Mr Matera said.
The IBIR model enabled it to fund sophisticated AI functionality to assist Indigenous business owners navigate ethical practices and better inform government and corporate procurers.
Mr Wyatt said solving the Black cladding issue was urgent, evidenced by the support the IBIR model had received from the corporate sector, which was concerned and frustrated at the current risks across the Indigenous business industry.
"We have a couple of big heavy hitters that want to see this, that are supportive of what we're doing, who want it," he told the Indigenous Business Review.
"They're troubled with the issue... do they stop giving tenders to Aboriginal companies?
"One company did not provide a tender to Aboriginal companies in one of their rounds, and it's because of concerns around this [Black cladding]."
National Indigenous Business Chambers Alliance (NIBCA) chair Naomi Anstess acknowledged the intent behind the IBIR to strengthen integrity and accountability in the Indigenous business sector.
"It reflects a genuine concern shared by all of us... Black-cladding, fraudulent claims of Aboriginality, and misuse of procurement opportunities remain serious threats to our people's economic rights," she said.
However, integrity must not come at the cost of self-determination.
"Any framework designed to protect our sector must be governed, owned, and led by Aboriginal people, not outsourced to private or non-Indigenous auditors," Ms Anstess said.
"The goal is right, but the governance model is wrong."
Ms Anstess said the verification of Aboriginal business identity must remain under Aboriginal control.
"The national principles we have endorsed make it clear that proof of Aboriginality requires cultural authority, not private ownership or AI auditing," she said.
"Any model that outsources our identity, commercialises verification, or removes Aboriginal people from decision-making is incompatible with self-determination, integrity, and data sovereignty."
A spokesperson for Supply Nation, which operates a nationwide database of Indigenous businesses, told the Indigenous Business Review the organisation "welcomes all legitimate efforts to support the long-term sustainable growth of the Indigenous business sector".
