Secrecy surrounds process used to decide distribution of more than $95m in sporting grants

Labor promised the majority of $95m in sporting grants for seats it targeted at the state election, a parliamentary committee has heard – with its process a secret.

Secrecy surrounds the processes used to decide the distribution of more than $95m in grants pledged by Labor to sporting clubs in the lead-up to the state election, a parliamentary committee has heard.

Auditor-General Andrew Richardson, whose job is to audit government finances and financial processes, said the selection of winners was conducted “outside of the usual public sector framework”.

He could not say whether he had referred the matter to any other investigative body.

The majority of the $95.1m in sporting and recreation grants and $38.2m in local infrastructure upgrades went to clubs or projects in seats Labor was targeting at the March state election.

That has led the opposition to accuse the government of “pork-barrelling” – the practice of using government funds on projects designed to win votes.

Lucy Hood with community members for the Walkerville Community Hub announcement. Picture: Facebook

However, the government has repeatedly denied the allegation, and said proper processes were followed and it is now delivering on its election commitments by paying the money.

In a recent report, Mr Richardson said he was told no government records capture reasons for the decisions because the process was undertaken while Labor was in opposition.

In evidence to the Economic and Finance Committee on Monday, he said he has requested seven cabinet documents to obtain further information about allocation of the grants.

However, his request has so far been denied by the government because of the convention of cabinet confidentiality.

He said he requested the documents because cabinet submissions traditionally contain “many, if not all” of the key elements that explain government initiatives, as well as the rationale and justification for the actions authorised.

“Without access to at least evidence of the approval of the submission, I would not be able to conclude that some programs have been appropriately authorised,” he said.

Mr Richardson said had not seen evidence of any criteria used for approving the funding, or any information about how the community was informed of the amounts available, and the assessment and approval process that decided which clubs would receive funding.

Asked whether he had referred any matters uncovered in his audit to any investigative authority, he replied: “I’m not entirely sure that’s a question I’m able to answer”.

Labor MP Stephen Mullighan with a sports grant for West Lakes Sports Club. Picture: Facebook

Tom Koutsantonis and Peter Malinauskas at the Thebarton Aquatic Centre for the $6.1m sports grant announcement. Picture: Facebook

He added he did not have access to enough information to say whether any minister had a conflict of interest in approving a grant.

Opposition treasury spokesman Matt Cowdrey said the government’s refusal to release the relevant Cabinet documents “smells fishy”.

“Peter Malinauskas and his Labor government are facing a transparency and credibility crisis because they can’t be upfront with South Australians about who has received grants and how they were selected,” he said.

“The Auditor-General still wants Labor’s secret documents and there’s no reason why Peter Malinauskas can’t hand them over today. What is he trying to hide?”

Asked about Mr Richardson’s evidence, Premier Peter Malinauskas said the pledges were election commitments — not grants — and his government had nothing to hide.

“Every single cent of expenditure that comes from taxpayers funds to deliver on our election commitments, to which we are wholeheartedly committed, is fully transparent and fully available for everybody to see, including the Auditor-General,” he said.

“The only thing that’s not publicly available are Cabinet documents, and that’s an established principle that has always been upheld.”