Council demands $21m compensation over failed property deal
The South West Aboriginal Land and Sea Council has demanded $21m in compensation after a report into the purchase of property by Equity Trustees saw them lose $13m over the purchase and subsequent resale.
In February 2023, the South West Aboriginal Land and Sea Council referred the matter to the Western Australian Charitable Trusts Commission, requesting an investigation into Equity Trustee’s acquisition of the El Caballo properties in Perth.
A West Australian Ombudsman has now recommended Equity Trustees compensate the Noongar Charitable Trust estate for the loss that occurred due to its breach.
“Our Noongar People must be compensated for this financial loss,” SWALSC chief executive Vanessa Kickett 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.”
Equity Trustees were found to have acted in breach of its duties prior to the purchase of the El Caballo properties for $12m in 2020.
It then spent $5 million of Trust funds on maintenance, lawyers, and consultants.
The Trustee sold the El Caballo Lifestyle Village for $4 million in 2023 and it tried and failed to sell the El Caballo Resort.
The resort is now in a severely dilapidated condition and considered by SWALSC to be worthless.
“Equity Trustees must now pay $21 million in compensation for the loss it has caused our Noongar People by their imprudent purchase of the El Caballo properties,” Ms Kickett said in a statement.
Equity Trustees, as trustee of the Noongar Charitable Trust, supports Aboriginal Community Controlled Organisation projects that offer direct benefit to the Noongar community.
SWALSC has claimed if the funds had remained in the Trust’s investment pool they would have grown by $8 million, so they say the Trust has lost a total of $21 million.
The Commission has given Equity Trustees and SWALSC to September 15 to provide submissions as to the appropriate restoration sum.
