LEGAL proceedings against former Katungul CEO Damien Matcham by the Registrar of Indigenous Corporations have come to an end after he filed for voluntary bankruptcy.
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In February, the Federal Court in Sydney made orders for the former CEO of the Katungul Aboriginal Corporation Community and Medical Services to pay over $1.2million in fines and compensation.
Mr Matcham was also disqualified from managing Aboriginal and Torres Strait Islander corporations and companies registered with the Australian Securities and Investments Commission (ASIC) for 15 years.
The Federal Court proceedings were initiated by the Registrar in June 2012.
In February’s Federal Court ruling, Mr Matcham was found to have paid unauthorised bonus and time in lieu payments to himself of more than $515,000 from 2008 to 2011.
He also received unauthorised payments for excess superannuation, recreation leave and other non-salary payments.
Mr Matcham incurred personal expenses on Katungul’s credit card and signed a mortgage over a Katungul property to secure a $200,000 bank overdraft for the corporation.
Katungul is a not-for-profit corporation that provides essential primary and secondary health services to Aboriginal people in the Far South Coast.
“This is a significant decision and the scale of the orders is unprecedented in the Aboriginal and Torres Strait Islander corporate sector,” Mr Beven said of the $1.2million penalty.
“This should send a very clear message that there are serious consequences for corporation officers that fail to meet the standards expected of them.”
The Registrar had recently started bankruptcy proceedings against Mr Matcham, but they were ended when Mr Matcham filed a debtor’s petition.
This brings to a conclusion all legal proceedings commenced by the Registrar against Mr Matcham.
Creditors with a claim against Mr Matcham should contact the Official Trustee in Bankruptcy on 1300 364 785.
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