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Northern Land Council referred to national anti-corruption watchdog over COVID-19 grants

Exterior front signage at the Northern Land Council offices in Darwin.

The National Anti-Corruption Commission raided the Northern Land Council's offices in Darwin last month. (ABC News: Ian Redfearn)

In short:

The Northern Land Council (NLC) is facing scrutiny as to how it administered millions of dollars in COVID-19 stimulus funding received during the global pandemic.

A federal senate estimates hearing on Friday revealed the matter had been referred to the National Anti-Corruption Commission.

What’s next?

The land council is potentially facing two separate corruption investigations, with a search warrant last month probing suspicious conduct by a former employee.

The administration of COVID-19 stimulus funding by one of Australia’s most powerful Aboriginal land councils has been referred to the national anti-corruption watchdog.

Northern Land Council (NLC) interim chief executive Jessie Schaecken told a Senate estimates hearing on Friday she had made the referral after making enquiries into the stimulus program.

''While I appreciate the investment principles were set by the former minister [for Indigenous Australians] Ken Wyatt, what I found concerned me,'' she said.

''As is required of me as an agency head, I have made a report to the National Anti-Corruption Commission (NACC).''

Publicly available federal government documents show the NLC received more than $36 million in COVID-19 stimulus funding between 2020-2022.

The documents say the funding was aimed at helping ''Indigenous businesses recover from the impact of COVID-19, with a focus on creating and sustaining jobs through economic, social and infrastructure projects''.

Stimulus referral 'not aimed at specific people'

Accusations surrounding the misuse of COVID stimulus funding have previously been levelled against former NLC chief executive Marion Scrymgour in Senate estimates, however, Ms Schaecken said her referral did not target any one individual.

''I reported the administration of the stimulus, not specific people,'' she said.

Marion Scrymgour

Marion Scrymgour was chief executive of the Northern Land Council during the height of the COVID pandemic. (ABC News)

On Friday, Minister for Indigenous Australians Malarndirri McCarthy told estimates Ms Scrymgour — who served as the NLC's chief executive between 2019 and 2021 — had no role in administering four COVID-19 grants applied for by members of her family.

Ms Scrymgour, now the Labor MP for the vast Northern Territory federal seat of Lingiari, has repeatedly denied any involvement in the awarding of stimulus grants.

She has also previously flagged possible legal action over allegations made against her by Victorian independent Senator Lidia Thorpe under parliamentary privilege and on social media.

An elderly man wearing an NLC shirt.

Joe Martin-Jard left the NLC chief executive role in March.  (ABC News: Ian Redfearn)

The NLC's general manager of corporate services Irfan Bhat said those four grants were approved by late NLC chair Dr Bush-Blanasi and Ms Scrymgour's successor as chief executive, Joe Martin-Jard.

Mr Martin-Jard left the NLC earlier this year, after serving in the role since 2021.

NLC members voice concerns

Senate estimates also heard from executive members of the NLC and other remote territory land councils, who had travelled to Canberra to voice the concerns of their members.

These included traditional owner Raymond Hector from the remote Victoria River community of Nitjpurru, which has been hit by multiple serious floods in recent years.

An aerial view of flooding in a remote community, showing water up to the rooftops of houses.

Residents of Nitjpurru, formerly known as Pigeon Hole, have been calling for their community to be relocated to higher ground. (Supplied)

Nitjpurru residents are calling for the entire community to be moved to higher ground.

''We've been told every year the floods are one in a 100 years,'' he said.

"Yet every year, floods come, and Nitjpurru is not the only community evacuated in this way … and I call on you to stand with us with our call for changes."

The hearings also featured robust debate on topics affecting Aboriginal residents across northern Australia, including the state of NAAJA and the abolition of the cashless debit card.