The Indigenous Procurement Policy (IPP) is a multi-billion-dollar initiative aimed at boosting Indigenous economic empowerment. However, a growing concern known as 'black cladding' threatens to undermine its effectiveness. This phenomenon occurs when non-Indigenous entities take control of Indigenous-owned businesses, effectively stripping them of their Indigenous identity and ownership. The case of Scott Franks and his business, Glad Indigenous, serves as a stark example of this issue. Despite being the majority owner and CEO, Franks found himself at the mercy of a minority shareholder who exerted significant control over the company's operations and finances. This led to a legal battle, significant financial losses, and ultimately the closure of the business. The scale of black cladding is difficult to measure, but recent research suggests that only a small fraction of IPP contracts go to majority Indigenous-owned businesses. This raises serious questions about the policy's impact and whether it is being undermined by loopholes that allow for black cladding. The consequences of black cladding extend beyond financial losses for Indigenous communities. It disrupts the cultural circular economy, which is based on social well-being, health, and the treatment of elders. As the policy is set to be strengthened, there is a call for governments to take a harder line against black cladding, ensuring that the IPP truly empowers Indigenous businesses and communities.
