The Riverina Medical and Dental Aboriginal Corporation (RivMed) chairman says the organisation has been placed under special administration after a review uncovered multiple areas of concern.
RivMed chairman Hewitt Whyman said the Office of the Registrar for Indigenous Corporations (ORIC) advised the board of directors on Friday that a special administrator will be put in control of the medical hub.
The Daily Advertiser sought official confirmation from ORIC, however, it was not forthcoming.
The apparent decision comes after a warning issued by the corporation watchdog earlier this year in which RivMed's directors were given until February 11 to "show cause" as to why they should not be placed under administration.
Mr Whyman was appointed to the board of directors and named chairman on November 24 when RivMed members voted for a total overhaul of the previous board.
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He said the new board's response to the warning was a reluctant but unanimous agreement that special administration would be the best thing for the medical hub and the local Aboriginal community.
"We did not make this decision lightly but it's time now to open the door to accountability and transparency to protect our legacies for our future generations and families," Mr Whyman wrote in the response provided to ORIC.
Mr Whyman said an ORIC delegate informed the current board of the decision last Friday and they will be meeting with the newly-appointed special administrator on Tuesday.
Mr Whyman said the special administration was "positive news" for the corporation and business would run as usual while the administrator was in place, with all current staff positions secure.
ORIC began considering taking control of RivMed after an examination into the corporation launched on September 20.
Mr Whyman said the examination identified "several high risk areas" in the running of the medical hub including financial performance, high staff turnover and no evidence of a model of care.
According to ORIC, the aim of a special administration is to restore the corporation to "financial and organisational health" before returning control to the members.
Members of Wagga's Aboriginal community have previously expressed their hopes that the medical hub being placed under special administration would drive serious change in the operation of the centre.
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