Shirley McPherson was head of the Indigenous Land Corporation in 2010 when the purchase of the Ayers Rock Resort was approved despite recommendations from former Labor Ministers, Jenny Macklin and Penny Wong.
Ms McPherson claims she has been defamed and that no board members opposed the purchase.
The current chief executive officer of the Indigenous Land Corporation, Mike Dillon, criticised her actions during senate committee hearings, calling the decision “paltry and pathetic".
The Minister for Indigenous Affairs Nigel Scullion has since written to Mr Dillon seeking an apology for his comments,
Aboriginal leader Dawn Casey has also received criticism in recent weeks for her decision to dismiss multiple board members.
“It was our duty given the significance of the write down for this financial year and the losses of the last two years, totalling almost $109 million,” said Ms Casey.
Ms Casey says it was necessary considering the financial situation of Ayres Rock Resort.
“We have to find the money out of other programs to repay the loan that was borrowed by the former board to acquire Ayers Rock Resort,” said Ms Casey.
Since information about the purchase and subsequent dismisal of board members has emerged, the Indigenous Affairs Minister has announced a review into the functions of the Indigenous Business Australia and the Indigenous Land Corporation to see whether they should be merged.
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