Financial investigation ordered as remote Cape York businesses close
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Australia's northernmost mainland community has been without its only supermarket for almost two months.
The service station at the Cape York town of Seisia is also closed and visitors cannot book into the campground.
Many in the community of 260 are not sure why the services have closed.
But workers say they have not been paid and it has triggered a corporate governance probe.
The remote town's main service businesses are run by a community-owned organisation called Seisia Enterprises.
It launched in 1996 as part of an effort to generate employment in the remote community near the tip of Cape York, 1,000km north of Cairns.
"My vision was that if we can start businesses that made money for us, we can be here for a long time, instead of going back to government for money," said one of its founders, Joseph Elu.
Mr Elu said he was worried about what the closures would mean for the community's future.
It is not clear when the shops will reopen and, in the meantime, residents are travelling 6km to the town of Bamaga to buy food and fuel.
The closures occurred after five new directors joined the board of Seisia Enterprises.
But in a statement they said the organisation "firmly refutes and denies any claims it is responsible for the closures".
Among the new board members are chairman Jeffrey Aniba and Aaron Fa'aoso, a well-known actor who has appeared in ABC TV series such as The Straits and Black Comedy.
The statement said the board was assessing the company's financial situation with a focus on revitalising Seisia.
The board said it was assessing the financial status of the business and would not comment on operational aspects of the business until it had a "comprehensive picture" of its finances.
In the meantime, Seisia resident Gregory Bond said he was still turning up to work unpaid in the hope of one day being paid what he was owed.
He has worked for the company for 23 years and said the community was suffering.
"People need fuel for their cars and boats to go out fishing and all that," he said.
He said a freezer malfunction after the shop closed led to spoiled food.
The circumstances that led to him stepping down are under police scrutiny.
Francis Elu said Mr Fa'aoso and his brother James approached him late last year to discuss a proposal for new investment into Seisia Enterprises.
During a second conversation with the brothers in December Mr Elu alleges he was "pressured" to resign as a director because of the business's financial position and allegations of corruption.
"They told me that 'look, Seisia is in a mess and that people will probably get thrown in jail' and all this stuff," Francis Elu said.
Four days later he made a formal complaint to Queensland Police which is now investigating the nature of that meeting.
James Fa'aoso, who is not on the Seisia Enterprises board, has been contacted for comment.
No charges have been laid and the ABC is not suggesting any wrongdoing.
The parent corporation's most recent published financial report for the year ending June 30, 2023, showed it had $4.4 million in assets and $485,000 in cash.
However, it is understood Seisia Enterprises had about $30,000 in its bank accounts when the new directors took over.
Former finance director and acting chief executive Moses Tabuai said the organisation's financial position was "critical" at the time.
But he said he believed in the recovery plan which aimed to sell assets and use grant funding to reopen a local meatworks and butcher shop to generate more income.
Mr Tabuai said he paid staff wages until the new directors allegedly locked him out of the business bank accounts in March.
He said that prompted him to quit.
In their statement, the board did not answer questions about unpaid workers and Mr Tabuai's inability to access the business bank accounts.
The board statement, issued by Mr Aniba, said the situation was "complex and sensitive".
"Our primary focus is on revitalising Seisia Enterprises to continue providing essential employment opportunities for our community, as we have successfully done for the past 20 years," the statement read.
Ms Elu, the daughter of Joseph Elu, said the business's financial viability was also held back by a monthly fee it pays to the Northern Peninsula Area Regional Council, which still owns its shopfronts.
Ms Elu said she was concerned the ongoing closure would damage Seisia Enterprises's long-term relationship with critical major suppliers.
She said the situation highlighted a need for more corporate governance education to be rolled out in remote communities to reduce the risk of "intimidation, bullying and exploitation" of vulnerable community members.
Australian Workers' Union acting Queensland secretary Mark Raguse said the organisation was working with people who said they had not been paid.
The Office for the Registrar of Indigenous Corporations (ORIC) has ordered a full financial examination.
An ORIC spokeswoman said the registrar would consider whether to appoint a special administrator to the Seisia Community Torres Strait Islander Corporation and its subsidiary, Seisia Enterprises.
Cook state MP David Kempton said the situation was devastating for the community, with a lot of uncertainty.
He said the organisation was a cornerstone of the community and "now no-one really knows what's going on".
In the meantime, Francis Elu said he had driven families in his own car to buy groceries and fuel in Bamaga.
"It's like a flashback going back to my grandfather's days," Mr Elu said.
The service station at the Cape York town of Seisia is also closed and visitors cannot book into the campground.
Many in the community of 260 are not sure why the services have closed.
But workers say they have not been paid and it has triggered a corporate governance probe.
The remote town's main service businesses are run by a community-owned organisation called Seisia Enterprises.
It launched in 1996 as part of an effort to generate employment in the remote community near the tip of Cape York, 1,000km north of Cairns.
Seisia is the closest community to the tip of Cape York, a popular bucket list destination for tourists. (ABC News: Brendan Mount
"My vision was that if we can start businesses that made money for us, we can be here for a long time, instead of going back to government for money," said one of its founders, Joseph Elu.
Mr Elu said he was worried about what the closures would mean for the community's future.
Doors close to community
In early March, the doors suddenly closed on Seisia Enterprises's supermarket and service station.It is not clear when the shops will reopen and, in the meantime, residents are travelling 6km to the town of Bamaga to buy food and fuel.
The closures occurred after five new directors joined the board of Seisia Enterprises.
Cape York communities are remote, with roads between them largely unsealed. (ABC News: Brendan Mounter)
But in a statement they said the organisation "firmly refutes and denies any claims it is responsible for the closures".
Among the new board members are chairman Jeffrey Aniba and Aaron Fa'aoso, a well-known actor who has appeared in ABC TV series such as The Straits and Black Comedy.
The statement said the board was assessing the company's financial situation with a focus on revitalising Seisia.
In the meantime, Seisia resident Gregory Bond said he was still turning up to work unpaid in the hope of one day being paid what he was owed.
He has worked for the company for 23 years and said the community was suffering.
"People need fuel for their cars and boats to go out fishing and all that," he said.
He said a freezer malfunction after the shop closed led to spoiled food.
Police investigate allegation
The board overhaul came after the resignation of former director Francis Elu.The circumstances that led to him stepping down are under police scrutiny.
Francis Elu said Mr Fa'aoso and his brother James approached him late last year to discuss a proposal for new investment into Seisia Enterprises.
During a second conversation with the brothers in December Mr Elu alleges he was "pressured" to resign as a director because of the business's financial position and allegations of corruption.
The northern peninsula area of Cape York is isolated and remote. (ABC Far North: Carli Willis)
Four days later he made a formal complaint to Queensland Police which is now investigating the nature of that meeting.
Aaron Fa'aoso said he strongly rejected any allegation he had coerced Francis Elu to quit.James Fa'aoso, who is not on the Seisia Enterprises board, has been contacted for comment.
No charges have been laid and the ABC is not suggesting any wrongdoing.
'Complex and sensitive' situation
Seisia Enterprises is a subsidiary of the Seisia Community Torres Strait Islander Corporation, a not-for-profit with public reporting obligations.The parent corporation's most recent published financial report for the year ending June 30, 2023, showed it had $4.4 million in assets and $485,000 in cash.
However, it is understood Seisia Enterprises had about $30,000 in its bank accounts when the new directors took over.
Francis Elu said a plan had been in place to turn Seisia Enterprises's finances around and "everything was on track" prior to his resignation in December.Former finance director and acting chief executive Moses Tabuai said the organisation's financial position was "critical" at the time.
Mr Tabuai said he paid staff wages until the new directors allegedly locked him out of the business bank accounts in March.
He said that prompted him to quit.
In their statement, the board did not answer questions about unpaid workers and Mr Tabuai's inability to access the business bank accounts.
The board statement, issued by Mr Aniba, said the situation was "complex and sensitive".
"Our primary focus is on revitalising Seisia Enterprises to continue providing essential employment opportunities for our community, as we have successfully done for the past 20 years," the statement read.
'Back to grandfather's days'
Seisia Enterprises former grants officer Talei Elu, who was sacked by Mr Aniba earlier this year, said the business's financial position was partly down to some past poor management decisions.Ms Elu, the daughter of Joseph Elu, said the business's financial viability was also held back by a monthly fee it pays to the Northern Peninsula Area Regional Council, which still owns its shopfronts.
Ms Elu said she was concerned the ongoing closure would damage Seisia Enterprises's long-term relationship with critical major suppliers.
She said the situation highlighted a need for more corporate governance education to be rolled out in remote communities to reduce the risk of "intimidation, bullying and exploitation" of vulnerable community members.
Australian Workers' Union acting Queensland secretary Mark Raguse said the organisation was working with people who said they had not been paid.
The Office for the Registrar of Indigenous Corporations (ORIC) has ordered a full financial examination.
An ORIC spokeswoman said the registrar would consider whether to appoint a special administrator to the Seisia Community Torres Strait Islander Corporation and its subsidiary, Seisia Enterprises.
Cook state MP David Kempton said the situation was devastating for the community, with a lot of uncertainty.
He said the organisation was a cornerstone of the community and "now no-one really knows what's going on".
In the meantime, Francis Elu said he had driven families in his own car to buy groceries and fuel in Bamaga.
"It's like a flashback going back to my grandfather's days," Mr Elu said.
