ICAC South Australia flagged black‑cladding risks… so what changed?

In June 2024, ICAC SA released Buying trust: Corruption risks in public sector procurement, which included discussion of ‘black cladding’– where non‑Indigenous entities take unfair advantage of Indigenous businesses to access procurement policies or contracts.

The topic was also raised in SA Parliament that week in questions to ministers.

Coverage from the time reported allegations to ICAC that some suppliers misrepresented Aboriginal identity to gain advantage. The reporting highlighted calls for stronger verification and random audits.

Supply Nation’s own material defines black cladding risks and outlines countermeasures: Registered vs Certified tiers, annual/spot audits, and real‑time ASIC alerts for ownership changes. It also points out procurement teams must still do their own due diligence.

At the Commonwealth level, the Government has since announced higher IPP targets – 3% in 2025–26 rising to 4% by 2029–30 – and a shift to ≥51% owned and controlled (or ORIC). Ministerial and NIAA pages describe the reforms as aimed at strengthening integrity and tackling black cladding.

In SA, the South Australian Office of the Industry Advocate (OIA) Aboriginal Engagement Initiative and agency procedures already enable direct engagement up to $550,000 for eligible SA Aboriginal businesses, creating both opportunities and a need for robust verification.

In an emailed statement, an OIA spokesperson said it uses a range of methods to verify Indigenous businesses, including Supply Nation (described by the Commonwealth as the nation’s “leading database of verified Indigenous businesses”) and declined to comment further on internal processes.