Supply Nation tightens rules to thwart Blak Cladding
EXCLUSIVE
Supply Nation has informed its members and suppliers it is to update its verification processes to protect the integrity of the sector and to prevent fraudulent activities known as ‘Blak Cladding’.
After recently telling Certified Suppliers of changes to its process, the organisation has reinforced the message and rolled out to everyone its 2026 plan; where it will introduce annual face-to-face interviews for all Certified Suppliers in addition to the existing documentation assessments.
The growth of the Indigenous business sector has been one of Australia’s great success stories, with annual procurement spend on Supply Nation suppliers reaching almost six billion dollars last financial year.
Behind this spend are countless stories of families supported, communities strengthened and lives transformed.
However, one practice threatens all the hard work of so many people to build individual businesses and grow the Indigenous economy.
This practice is fraud, or as its commonly referred to, Blak Cladding.
We need to protect the sector and mitigate against fraud, says CEO Kate Russell.
Every incident denies opportunities for genuine Indigenous businesses. It also reduces market confidence in our section, Supply Nation has told members and suppliers.
The interviews will confirm key details of each business’ ownership, management and control ensuring certification remains accurate and trustworthy.
“Beyond strengthening verification, these conversations will also help us improve supplier profiles on Indigenous Business Direct, leading to better business matching and more opportunities for Indigenous suppliers,” Supply Nation said in an email to it members and suppliers.
Robust Verification Process
“The data on the Indigenous Business Direct profiles is how we match members and suppliers. Inaccurate data means that suppliers are missing out on opportunities.”
“The growth and diversity of the Indigenous business sector is one of Australia’s great success stories, but we need to protect the sector and mitigate against fraud or as it is known, Blak Cladding,” Kate Russell, proud Awabakal woman and CEO of Supply Nation told First Nations News.
“To further protect the integrity of the sector and to support our suppliers and members, Supply Nation is further strengthening our already robust verification processes.
“From 2026, we’ll be introducing annual face-to-face interviews for all certified suppliers in addition to the existing documentation assessments.
Ms Russell says the new rtules will help to improve supplier profiles on Indigenous Business Direct.
“These interviews will confirm key details of each business’s ownership, management and control, ensuring certification remains accurate and trustworthy.
“Beyond strengthening verification, these conversations will also help us improve supplier profiles on Indigenous Business Direct, the national database of verified Indigenous businesses, making it easier for our members to find and engage with appropriate suppliers and to procure with confidence.”
Federal Government Changes
Supply Nation said it was aware of the many competing demands businesses face, so interviews would be kept brief and suppliers should expect they take no longer than 30 minutes.
The Federal Government has also announced changes to address blak cladding. These include amending the national definition of an Indigenous business from 50 to 51 per cent owned and controlled. This change would primarily impact the Registered cohort, so they are introducing interviews to Certified businesses in the pilot phase.
This is an area of regulation Supply Nation has long campaigned for, so they were pleased that Government listened to the calls of many for reforms.
“We are still waiting on details of the implementation from Government and will let you know as soon as more information is available,” the email to suppliers and members said.
