Land council faces legal action over property deal
An Indigenous land council in Western Australia has been taken to court over property dealings and the purchase of the El Caballo Blanco ranch resort in Wundowie, east of Perth.
ASX-listed company Equity Trustees is seeking damages from the South West Aboriginal Land and Sea Council and Perth-based Spatial Property Group.
The law suit claims misleading statements were made prior to the acquisition of the ranch in 2019 and 2020.
SWALSC’s former chief executive Wayne Nannup is named as a defendant, along with Vincent Cecil Morley, who was involved in drafting the original report.
Disappointing action
In a statement on the SWALSC website the organisation said it was disappointed that Equity Trustees had chosen the course of action rather than engaging in mediation.
“Following an investigation into EQT’s actions as Trustee of the Noongar Charitable Trust, the Western Australian Charitable Trusts Commission recommended mediation between EQT and SWALSC,” they said.
“SWALSC believes that direct negotiations, rather than legal action, are in the best interests of the Noongar People. We remain open to engaging constructively with EQT and other stakeholders to achieve the best possible outcome for the Noongar community.”
SWALSC added it would continue to act in the best interests of Noongar people and provide updates to members.
A spokeswoman from Equity Trustees told the Financial Review “the organisation remained committed to the trust’s purpose and intent, but had lodged the writ to preserve its right to take action.
“As trustee for the NCT, we have taken steps to preserve courses of action against third parties we believe have caused a loss to the NCT,” the spokeswoman added.
Six months ago Charitable Trusts Commissioner Bevan Warner stated that Equity Trustees had breached its duties by allowing the trust to purchase the derelict resort.
The Commissioner’s report stated the authors of the valuation report ‘lacked expertise’ and did not meet due diligent standards.
At the time Equity Trustees defended its handling of the purchase and dismissed calls for compensation.
SWALSC has previously said it would pursue a compensation claim for $21 million in damages, saying that is what the funds would have earned had they been in an investment portfolio.
