By PETER ROWE
Sadly, it would seem, ‘black cladding’ is still not just with us, it may be on the increase.
Supply Nation considers ‘black cladding’ the practice of a non-Indigenous business entity or individual taking unfair advantage of an Indigenous business entity or individual for the purpose of gaining access to otherwise inaccessible Indigenous procurement policies or contracts.
Others simply say it projects an image of being an Aboriginal business when in fact the people that control that businesses and run it are not Aboriginal.
Bottom line, it’s about money, dollars – and greed.
And more companies are claiming, with little or no checks, that they are an Aboriginal business.
So, technically, why do non-Indigenous owned businesses engage in black cladding?
Money and control of a contract for sure, but some businesses market themselves as having a Supply Nation registration or certification but they will engage in ‘black cladding’ if it does not in fact meet the relevant requirements.
Some have been found to just promote that registration or certification in order to gain access to otherwise inaccessible Indigenous procurement.
Currently Supply Nation, the peak organisation for registering businesses, recognises a business as Indigenous if there’s majority ownership of at least 51 per cent.
But there is a strong argument that just a one per cent majority can easily be overturned, especially in a joint venture agreement.
The criteria is weak and allows for too loose interpretation and makes it easier for those trying to rig the system.
And rigging the system with no penalty – none at all.
Boxing legend Anthony Mundine called out the practice last year.
“It’s totally wrong. Most companies who are doing it wrong are getting all the work,” he said.
Perhaps the ACCC needs to be involved. The Australian Competition and Consumer Act clearly states there are a whole range of protections that deal with business conduct and there are serious penalties.
Those penalties are already law and black cladding is most definitely misleading and deceptive.
Isn’t it time we started to knock on the door of the ACCC?
