121031 Whistleblower reveals FMG Mining deal bombshell

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Whistleblower reveals Fortescue’s backing for
Wirlu-murra to undermine Yindjibarndi stand
Mining deal bombshell
Exclusive
By National Indigenous Times
reporter Gerry Georgatos
A lawyer who spent more than a
year representing the interests of the
Wirlu-murra Yindjibarndi Aboriginal
Corporation has claimed the organisation
was a “quickly formed front” to enable
the Fortescue Metals Group to circumvent
negotiations with the Yindjibarndi
Aboriginal Corporation to secure mining
rights on Yindjibarndi lands in the Pilbara
worth hundreds of millions of dollars.
The allegations are serious and point to
the multi-billion dollar mining conglomerate
trying to use its almost limitless source of
funds to create an alternate Aboriginal group
that would comply with Fortescue’s wishes
because it would give them access to rich
mining resources for a fraction of the cost
they would normally be required to pay to
an Aboriginal organisation for permission to
mine on its land.
The Yindjibarndi Aboriginal Corporation
Chief Executive Officer, Michael Woodley
said the revelations by solicitor Kerry Savas,
who acted on behalf of the Wirlu-murra
were further evidence what the Yindjibarndi
Corporation had long suspected was behind
the creation of the Wirlu-murra breakaway
group.
Mr Woodley said the actions of Fortescue,
if they could be proved to be true, were
utterly reprehensible.
He has called for a Royal Commission
into the actions of Fortescue in reference
to their role in setting up the Wirlu-murra
Yindjibarndi Aboriginal Corporation and
to investigate what appear to be conflicts of
interest “that make a mockery of Native Title
and Federal Court determinations as to who
should be the authorised representative.”
Mr Savas worked for the legal firm Corser
and Corser which had been engaged from
August 2010 to January 2012 to represent
the breakaway Wirlu-murra Yindjibarndi
Aboriginal Corporation.
He has claimed he was present when plans
were discussed between the Wirlu-murra
group and representatives of Fortescue
including a former Fortescue employee
Michael Gallagher who had recently resigned
from Fortescue to take up a consultancy
with Wirlu-murra on the formation of the
breakaway group. The Wirlu-murra group
soon after accepted a financial package from
Chief Executive of the Yindjibarndi Aboriginal Corporation, Michael Woodley (left) with solicitor, Kerry Savas. Mr Savas worked as a legal
representative of the breakaway Wirlu-murra group and has claimed Fortescue was actively involved in the formation of the Wirlu-murra
Aboriginal Corporation. Image Gerry Georgatos.
Fortescue to mine on Yindjibarndi lands
even though the established Yindjibarndi
Aboriginal Corporation had rejected the
Fortescue offer because it was well below
equivalent agreements it had entered into
with another mining giant, Rio Tinto.
Fortescue is negotiating with the Wirlumurra
group as the representative of the
Yindjibarndi people despite the Yindjibarndi
Aboriginal Corporation securing a Federal
Court determination in 2005 as the authorised
representative of the Yindjibarndi peoples.
Following failed negotiations with the
Yindjibarndi Corporation, Fortescue has
declared it will only negotiate with the Wirlumurra
group on mining rights on Yindjibarndi
land.
The Yindjibarndi Aboriginal Corporation
has been forced to engage in an expensive
and long running legal battle to try and force
Fortescue to recognise the Yindjibarndi
Aboriginal Corporation as the legal
representative of the Yindjibarndi people.
The Wirlu-murra Yindjibarndi Aboriginal
Corporation was formed in December 2010 as
a breakaway group from the established and
legally recognised Yindjibarndi Aboriginal
Corporation, which was established in 2005
through the Federal Court determination.
Mr Savas said Fortescue negotiators had
become frustrated by the negotiation process
with the Yindjibarndi Corporation and had
“encouraged” Yindjibarndi individuals to
consider forming another Yindjibarndi entity
so Fortescue could negotiate mining rights
“on their terms”.
Fortescue has denied it had initiated the
establishment of the Wirlu-murra breakaway
group but rather that Yindjibarndi individuals
had asked for their assistance to form
and support establishing the Wirlu-murra
Yindjibarndi Aboriginal Corporation.
“It is a fact that, following requests
for assistance from senior Elders of the
Yindjibarndi community, Fortescue assisted
in the establishment of the Wirlu-murra
Yindjibarndi Aboriginal Corporation,” a
spokesperson for Fortescue said.
“Fortescue has since supported the Wirlumurra
in their goal of building a better future
for all Yindjibarndi people and we will
continue to do so.”
Mr Savas said he first met the Yindjibarndi
Continued Page 8
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8 NEWS www.nit.com.au • October 31, 2012
Chairman of Wirlu-murra Yindjibarndi Corporation, Bruce Woodley. Inset: Former Fortescue
employee and now a consultant for the Wirlu-murra, Michael Gallagher. Images supplied.
From Page 1
individuals who would later form the
breakaway Wirlu-murra group at a beach at
Dampier on August 28, 2010. There were about
30 Yindjibarndi persons in attendance,” Mr
Savas said.
Mr Savas claimed one of the Wirlu-murra
group told him at that meeting Fortescue had
agreed to pay a fee to those Yindjibarndi who
attended the first meeting.
He said he was surprised by a lavish
barbecue Fortescue hosted on the beach for the
Yindjibarndi individuals who chose to attend.
“I must say I very much enjoyed it, the
barbecue and the catering was the likes of
nothing I have ever seen before. It was a grand
event beyond the imagination,” Mr Savas said.
A Fortescue representative contradicted Mr
Savas’ claim stating: “You have told us that Mr
Savas says he was at a Dampier Beach barbecue
hosted by Fortescue on Saturday 28 August
2010. We have no recollection of this event”.
“Questions you have put to us contain
allegations by Mr Savas that WMYAC is run
by Fortescue through a former employee.
Fortescue rejects this and other statements by
Mr Savas.”
Mr Savas said his travel costs to and from
Roebourne for legal work representing the
Wirlu-murra through Corser and Corser
Lawyers was paid by Fortescue.
“Fortescue paid for my air travel and
accommodation at the Karratha International
Hotel,” Mr Savas said.
“On May 2, 2011, I moved into a house at
Point Samson (near Roebourne) with Michael
Gallagher who was formerly with Fortescue and
who had terminated his contract with Fortescue
to work as a consultant for the Wirlu-murra.”
Mr Gallagher worked with Fortescue as an
anthropologist and heritage consultant. In 1989
Mr Gallagher, alongside Steven Hawke, son
of former Prime Minister Bob Hawke, wrote
a book about the Amax Exploration and Court
Government interference with Aboriginal land
rights at Nookanbah. He has an extensive
background in the field of anthropological
heritage and in recent years worked with the
Fortescue.
“He would ultimately become the guide and
will of the Wirlu-murra, create their agendas,
propose items and deliver outcomes to suit
Fortescue’s objectives,” Mr Savas said. “The
rent for the house we lived in for the next three
months was paid by Fortescue.”
Mr Savas claimed Mr Gallagher told him:
“Fortescue always gets its Land Access
Agreements signed one way or another”. “He
told me the Fortescue tactic was to have one
of their own people get established within
the Wirlu-murra group to win their hearts and
minds.
“In June 2011 Michael told me he had
resigned from Fortescue around Christmas
2010 and just after the formation of the Wirlumurra
group and from that time he called
himself a consultant for appearances so he
could deny being a Fortescue employee and
avoid Fortescue and himself being criticised for
interfering and influencing Aboriginal groups.
I asked him what possible benefit Fortescue
could gain from having him covertly working
for them in Roebourne with Wirlu-murra.
“He replied: ‘Plenty. Just look at how
Fortescue successfully obtained land access
agreements from the Nyiyaparli and Palyku
peoples of the northern Pilbara’.”
Mr Savas has claimed he witnessed further
examples of how Mr Gallagher maintained a
close relationship with the people at Fortescue.
“I saw him communicate by telephone and
email several times a day taking instructions
from senior Fortescue personnel. After he had
taken instructions from the Fortescue personnel,
he would attempt to instruct me on what
Fortescue wanted me to be doing regarding the
Wirlu-murra who were my clients.”
Mr Savas said senior Fortescue personnel
targeted him from August, 2011 because “they
claimed I was embarrassing Fortescue in front
of the Wirlu-murra”.
“This happened because I had asked for
clarity on certain issues from Fortescue which
I believe were in my client’s interests as is my
duty and instead I was castigated in private
by Fortescue. I told the Fortescue official
my obligations were to my client and not to
Fortescue and the official responded by saying:
‘do you really think you can stand in our way or
that we would allow that?’
“That same afternoon I was told I would not
be working in Roebourne with the Wirlu-murra
again.”
Mr Savas continued to have various contacts
with Wirlu-murra individuals who had told him
they did not want to continue to be in dispute
with the established Yindjibarndi Aboriginal
Corporation.
“In January this year some of the directors
of Wirlu-murra asked me to approach the
Chief Executive of the Yindjibarndi Aboriginal
Corporation, Michael Woodley to see if they
could settle their personal differences,” Mr
Savas said.
“I visited Michael Woodley at his home in
Roebourne on January 8 and it was agreed a
meeting would take place at the Woodbrook
Law Ground on January 13 between Senior
Men from Wirlu-murra and the Yindjibarndi
Aboriginal Corporation and that I would attend
also. All the men at that meeting decided they
wanted to stop the arguing with each other and
to work together to reunite the Yindjibarndi
community.”
Mr Woodley has confirmed the meeting took
Wirlu-murra was created to
represent our people: Board
The Wirlu-murra Yindjibarndi Aboriginal
Corporation issued the following statement
relating to allegations about its relationship
with Fortescue Metals Group:
“The Wirlu murra Yindjibarndi Corporation is
a proud community based group of Yindjibarndi
people based in Roebourne. We have established
the Wirlu murra Yindjibarndi Aboriginal
Corporation because we want to build a future
for all Yindjibarndi people. We are the Elders, we
are the rightful custodians of our land. We want to
use that knowledge to move forward and to create
opportunities and deliver lasting results for the
Yindjibarndi community.
“We formed Wirlu-murra because we believed
our voices were not being heard and that it
was being left to one or two people within the
Yindjibarndi Aboriginal Corporation (YAC) when
important decisions were being made. We wanted
the right to be part of the negotiation and decisionmaking
process. As parents and grandparents in
Roebourne we want our children and their children
to have jobs, to feel good about themselves and
we think that can happen through partnerships
with FMG and other mining companies.Wirlu
murra is committed to establishing a sustainable,
self-sufficient future for all Yindjibarndi people
by working with resource companies, government
and the broader community to provide better, long
lasting opportunities for our people.
“We run our own organisation and we have
pride in what we do. We are not a rubber stamp
for one company or any other. We negotiate with
a range of companies and organisations because
we think working with them will provide the
best outcomes for all Yindjibarndi people. We
are in negotiations with several companies with
place and that a second meeting was held on
January 17.
“Once again everyone agreed at that second
meeting they wanted to stop arguing and to end
the Court actions,” Mr Savas said.
“Later that day however I heard Mr Gallagher
tell a meeting of the Wirlu-murra there was no
need to reconcile with the Yindjibarndi. He said
to them that the Wirlu-murra would ‘thump’ the
Yindjibarndi in the courts.
“I lived with Michael Gallagher for three
months at Port Samson and he told me the court
actions would financially drain and buckle
the Yindjibarndi. He had portrayed Michael
Woodley and the Yindjibarndi to me as the
devil incarnate however I have found Michael
Woodley a good person and the Yindjibarndi
people as salt of the earth.
“There are those in the Wirlu-murra who
want Mr Gallagher to go away because they
believe he has fractured their community. The
problem is they don’t know how to go about it.
“I have no problem with another Aboriginal
corporation forming itself like the Wirlu-murra.
What I have a problem with is they are not being
allowed to create themselves as a legitimate
organisation and instead I believe they are
being manipulated by Mr Gallagher who is a
confessed agent of Fortescue who is trying to
direct the mind and will of the Wirlu-murra,”
Mr Savas said.
A non-Aboriginal spokesperson for the Wirlumurra
Yindjibarndi Aboriginal Corporation,
Mr Bruce Thomas said the Wirlu-murra Board
believed Mr Savas may have breached his
obligations by “making public” matters he
gained knowledge of while he was representing
the organisation.
“It would appear Kerry Savas is making
allegations based on information he claims
he obtained while engaged as a lawyer for
Wirlu-murra. If this is the case then he is likely
in breach of his professional obligations,” Mr
Thomas said on behalf of the Wirlu-murra
Board.
Given this apparent disregard by Mr Savas,
Wirlu-murra will not dignify the allegations
with a specific response.”
The full statement released by the Wirlumurra
Aboriginal Corporation is published on
this page.
Yindjibarndi Aboriginal Corporation Chief
Executive Officer, Michael Woodley said the
entire dispute which had created the division
was centred on Fortescue “not wanting to fairly
negotiate”.
“Rio Tinto for instance has been negotiating
outcomes with us that provide many times over
what Fortescue is offering. The Fortescue offer
was disgraceful,” Mr Woodley said.
“The Yindjibarndi Aboriginal Corporation
will not settle for anything less that is below
a view to forming profitable joint ventures as
we believe negotiating with such companies will
provide the resources to provide jobs, housing and
services to our community and a better future for
all. Funding from mining companies should not
be a criticism - it is a part of the process. YAC
receives money from Rio Tinto and probably other
such companies. Other Aboriginal corporations
received funding from other mining companies
– it is part of the process. It is how that money
is spent that is important and should be properly
scrutinised.
“It seems that some people do not want us to
achieve our vision for all Yindjibarndi to walk
together united to strive for a better future. At
the moment we cannot walk together with YAC
because they do not want to listen to what we
have to say and we have concerns about what we
believe are serious corporate governance issues
related to YAC.
“For that reason we are taking action in the
WA Supreme Court to have the matters worked
through. Hopefully we can work out these issues
with YAC but we will not go back to the way it
was, our people deserve better. We want our voices
to be heard and we will fight for a better future for
all Yindjibarndi people.”
The Yindjibarndi Aboriginal Corporation has
undertaken to provide a response to the Wirlumurra
statement which will be published in next
week’s edition of the National Indigenous Times.
Fortescue Metals Group was also approached
for a response. At the time of going to press
Fortescue had not responded. If a response is
received it will be published also in next week’s
edition of the National Indigenous Times.
Dealings between breakaway group and Fortescue challenged
industry standards for our Native Title consent.”
The battle between the Yindjibarndi
Aboriginal Corporation and Fortescue has
been seen by many as a “David versus Goliath
struggle” and a test of the integrity of Native
Title.
Fortescue has been challenged by one
controversy after another over its involvement
in the formation of the Wirlu-murra and its
failed negotiations with the Yindjibarndi
Aboriginal Corporation.
This includes allegations by an
anthropologist, Brad Goode who was engaged
by Fortescue to provide reports relating to
heritage sites on Yindjibarndi land and where
Fortescue is mining.
Mr Goode said his services were discontinued
by Fortescue after he refused a demand from
Fortescue officials to amend sections of his
report in reference to assessments on sites
where Fortescue wanted to mine.
Mr Goode’s tenure ended after he insisted on
including references to the cultural significance
of Kangeenarina Creek which would require
Fortescue accommodating the wishes of
the Yindjibarndi peoples to have a 50 metre
exclusion zone on either side of the creek.
Mr Goode said a Fortescue heritage manager
tried to pressure him into altering the report.
“It was the worst, the most reprehensible act
I have experienced as an anthropologist,” Mr
Goode was quoted as saying in The Australian
newspaper by journalist, Paul Cleary.
A Fortescue spokesperson said Fortescue
ultimately submitted Mr Goode’s report to the
State Government.
“We have a large number of consultants
and we always scrutinise their work closely to
ensure it is relevant, complete and complies with
the requirements of the relevant Government
agency from whom we are seeking approval,
in this case the Department of Indigenous
Affairs,” the Fortescue spokesperson said.
“It is not uncommon for us to raise queries
and work through those with the consultant.”
Mr Woodley said the Aboriginal Heritage
protections in Western Australia at this time
are “a sham.”
“Fortescue pays out huge sums of money to
consultants who will say what Fortescue wants
them to say, so that Yindjibarndi sacred sites
do not impede Fortescue mining projects and
their money making,” Mr Woodley said.
Mr Goode’s allegations follow a separate
incident last year involving another
anthropologist Sue Singleton, who complained
to the West Australian Registrar of Aboriginal
Sites about an alleged threat by Fortescue
to withhold her payments until she deleted
sections of an assessment by her on a Fortescue
mine site project on Yindjibarndi Country.