Updated March 15, 2018 22:34:03

Photo: Allan Lodge has had his Aboriginal status questioned. (Facebook: Allan Lodge)

A Darwin businessman who used a "confirmation of Aboriginality" certificate to obtain a $407,000 Indigenous grant, has had the document called into question by the Aboriginal corporation that awarded it.

Allan Lodge, 48, was certified in November 2015 as being Aboriginal under the previous board and CEO of the NT Stolen Generations Aboriginal Corporation..

Chair Eileen Cummings said the current board of directors last night determined the document should have been awarded in Mr Lodge's home state of NSW, not in the NT.

The NT Stolen Generations Aboriginal Corporation is currently in the process of revoking it.

"This [confirmation] seems to have just fallen through the cracks," Ms Cummings told ABC Radio Darwin.

"We were horrified at the way this happened. The board has passed a motion requiring all future [confirmations of Aboriginality] to be referred to their home state.

"Nobody knew who he was here. The paperwork appears to be lacking information."

The corporation's concerns come three weeks after a formal complaint was lodged with the Department of Prime Minister and Cabinet, alleging Mr Lodge was falsely claiming to be Aboriginal in order to obtain lucrative Federal Government grants.

The ABC first reported in February that Mr Lodge was awarded a $407,000 grant last September, through the $90 million Indigenous Entrepreneur Fund established by the Coalition Government, to expand his Darwin furniture business to Katherine.

The payment raised the ire of more than 30 Katherine business owners who questioned Mr Scullion about the grant that they said gave an unfair advantage to Mr Lodge's Innovative Office Furniture.

The money is awarded to Australian Aboriginal and Torres Strait Islander people looking to grow their businesses to fulfil a need in the community and advance the economic wellbeing of Indigenous Australians.

Department of Prime Minister and Cabinet to investigate allegations

The grant was approved by Federal Indigenous Affairs Minister Nigel Scullion last year, as part of money distributed through the overarching Indigenous Advancement Strategy.

The fund was allocated $4.9 billion over four years to 2018-19.

Last month, when questions were first raised about the grant, a spokesman for Mr Scullion said Mr Lodge's application had been thoroughly reviewed.

Photo: Katherine traders were left fuming over the grants, which they say made businesses uncompetitive. (ABC News: Mitchell Woolnough)

"All appropriate checks were undertaken with this application in line with the Indigenous Advancement Strategy," Mr Scullion said at the time.

The Department of Prime Minister and Cabinet has since confirmed a complaint relating to Mr Lodge's Aboriginal status was being investigated.

"The department is aware of allegations relating to this matter and is currently assessing them to determine whether further action is warranted," a spokeswoman said.

"As this matter is ongoing, no further comment can be provided."

Ms Cummings said the NT Stolen Generations Aboriginal Corporation was yet to be contacted by the department concerning the details of Mr Lodge's confirmation of Aboriginality.

She said they would assist with the investigation.

Claims businessman 'self-identified' as of Maori descent

Mr Lodge's former in-laws filed the formal complaint with the Department of Prime Minister and Cabinet on February 21.

They alleged Mr Lodge was not Aboriginal or Torres Strait Islander, and that he self-identified to them as being of New Zealand Maori descent in 2011.

"I am horrified that the Federal Government would give this man a government grant," his former sister-in-law Elva Hunt wrote in the complaint.

"Allan Lodge is claiming now to be Indigenous but he told me he had New Zealand heritage."

Mr Scullion's office confirmed that Mr Lodge submitted the "confirmation of Aboriginality" document provided by the Northern Territory Stolen Generations Aboriginal Corporation as part of his application and as proof that he was Indigenous.

Photo: Allan Lodge's business received a $407,000 grant under the Indigenous Advancement Strategy. (Facebook: Allan Lodge)

ASIC records show Mr Lodge was born in Sydney. His previous companies include All Professional Drilling Services in NSW, which was wound up in 2008.

Mr Lodge is currently the director of Innovative Office Furniture in Darwin, as well as a company called Glamping NT Pty Ltd, listed at the same address.

In February, Mr Lodge provided the ABC with a copy of the confirmation of Aboriginality and said it was "very upsetting" to have his heritage questioned.

His business emails and website carry an image of the Australian Aboriginal flag and state that the company is "100 per cent Indigenous owned and operated".

According to criteria provided by the Department of Prime Minister and Cabinet, an Indigenous business must be listed with Supply Nation or a similarly recognised Indigenous business directory, or if the company is registered with Indigenous Business Australia.

If the business applying for the grant is unknown to these organisations, then the department considers other forms of evidence, including certificates of Aboriginality provided by corporate bodies outlined under Native Title Regulations.

Mr Lodge declined to respond to questions about the allegations, but said in an email he had contacted NT Stolen Generations about the matter.

It is understood Mr Lodge could reapply in his home state of NSW.

Mr Scullion has been contacted for comment.

Topics: community-and-society, indigenous-aboriginal-and-torres-strait-islander, aboriginal, small-business, government-and-politics, federal-government, politics-and-government, nt, katherine-0850, darwin-0800

First posted March 15, 2018 14:23:08