MEDIA RELEASE
When the Commonwealth Government increased its Indigenous procurement target from 2.5% to 3% of all contracts in 2025, it did so to stimulate Indigenous entrepreneurship, business and economic development, providing First Nations people with more opportunities to participate in the economy.
But increasing financial incentives have attracted exploitation. As contract values grow, so too has the risk that businesses misrepresenting themselves as Indigenous-owned are accessing opportunities intended for First Nations communities. This risk is particularly pertinent in environments of heightened security requirements, such as Defense.
The Indigenous Business Integrity Register (IBIR) was established precisely for this purpose. Where existing certification relies primarily on self-declaration, IBIR's independent forensic audit model engages external Certified Practising Accountants (CPA) - operating at arm's length from the organisation - to examine ownership structures, financial flows, and governance arrangements in detail, and returns cultural authority back to First Nation communities.
The system has been academically endorsed and is supported by Former Minister of Indigenous Australians, the Hon Ken Wyatt, AM, with its associated Indigenous Business Operating Framework (IBOS 0103) progressing to ISO certification.
IBIR Founder and Nyoongar entrepreneur Gerry Matera believes a bulletproof verification system is critical in sectors such as Defense and Security.
The certification system that exists today was never designed to withstand the level of sophisticated fraud activities driven by financial incentives that now exist in Indigenous procurement. Businesses have been able to manipulate the certification process to access contracts worth millions. The market needs something that can stand up to scrutiny and ensure trust and integrity are maintained at the highest level.
This year at IDOS 2026, Stand 3F54 will brings together six outstanding Western Australian Indigenous businesses, each independently verified through IBIR. The cohort includes:
EON Protection: 100% Aboriginal-owned, award-winning security company delivering specialist protective services across defence, mining, government, health and infrastructure
Zagul Biri: Indigenous leaders and Royal Australian Navy veterans providing culturally grounded strategic advisory, leadership training and community-defence engagement
Bunbara: Indigenous female-owned procurement, supply chain and engineering solutions provider serving the oil, gas, mining and defence sectors
The Cryogenics Group: Australia's only 100% Indigenous-owned specialty gas supplier, serving healthcare, industrial and mining clients since 1993
Inspection Partners: majority Indigenous-owned asset integrity business delivering advanced non-destructive testing, facility audits and statutory compliance inspections
IBIR: the Indigenous Business Integrity Register, providing independent forensic verification of Indigenous business credentials
Gather Foundation: Fremantle-based Indigenous social enterprise and convener of Stand 3F54
As more Indigenous businesses opt to distinguish themselves in the market through IBIR verification, Mr Wyatt AM says the need to close the gap is urgent.
Genuine Indigenous businesses are frustrated. The corporate sector is frustrated. Everyone wants to do the right thing, but the tools available to verify who they are contracting with have not kept pace with the policy. It has allowed black cladding to fester. Every unverified business is a gap that black cladders exploit, and that has to change.
Black cladding - the practice of non-Indigenous businesses misrepresenting themselves as Indigenous-owned to access procurement opportunities - is not a new problem. Engaging with a fraudulent participant exposes prime contractors to compliance breaches, reputational damage, and in security-sensitive contracts, potential probity risk.
From 1 July 2026, new eligibility rules will raise the threshold to 51% Indigenous ownership and control - but until verification catches up with policy, the risk remains.
Research by Christian Eva of the Australian National University, published in the Australian Journal of Public Administration in 2025, revealed that just 18 firms had captured 50% of federal Indigenous procurement spending — worth $7 billion — between 2015 and mid-2023 and duplicates of ownership in joint ventures can be found in the top 100 procurement recipients.
The scale of this problem is vast, but the solution is very simple. We have developed a model where Indigenous businesses can affordably access CPA audits and structured culture assessment to validate their authenticity.,” Mr Matera said.
IBIR is a profit-for-purpose organisation which contributes to funding the transformation of Roelands Mission - a former Stolen Generation site in Western Australia's South West - returning it to a place of healing, culture and community strength.
IDOS attendees can register their Indigenous companies at the exhibition stand.
Media Contact:
Amanda Fay
0408 807 870
amanda@weitjinvestments.au