LNP grills Premier over choice of accountant in fiery question time

The LNP has questioned the appointment of an auditor to probe the contentious awarding of $267,500 in taxpayer funds to a company in which Premier Annastacia Palaszczuk's chief of staff has a stake.

The state government's Advance Queensland Business Development Fund made a $267,500 co-investment in a company linked to Ms Palaszczuk's chief of staff, David Barbagallo, for the development of an app called CruiseTraka.

Questioned over a potential conflict of interest, Premier Annastacia Palaszczuk accused the opposition of "attacking accounting firms".Credit: AAP Image/Dave Hunt

The revelation, uncovered during estimates hearings, prompted the Premier to ask her department's internal auditor Ernst and Young to review the funding, which was granted in 2017-18.

During a fiery question time, LNP leader Deb Frecklington said she could "now reveal an Ernst and Young partner was on the expert panel for Advance Queensland that advised on the establishment of the Business Development Fund" at the time the co-investment was made.

"How can Ernst and Young audit this grant given the clear conflict of interest?" Ms Frecklington asked.

Ms Palaszczuk accused the opposition of "attacking accounting firms in this state".

The Premier's chief of staff, David Barbagallo.Credit: AAP Image/Jono Searle

"I did not appoint the accounting firm, the director-general [of Ms Palaszczuk's department] appointed the firm without any involvement of myself," she said.

An Ernst and Young partner was on a government expert panel tasked with providing advice and direction in the implementation of Advance Queensland initiatives and programs.

Member for Toowoomba South David Janetzki asked if Ms Palaszczuk would release the conflict of interest management plan for Mr Barbagallo.

"In relation to any issues around my chief of staff, he has assured me that he has done everything appropriately and has always sought integrity advice ... as the opposition well knows, there is an audit that is currently under way."

Asked if she had ever spoken to Mr Barbagallo about the Business Development Fund while he was the Premier's chief of staff, Deputy Premier Jackie Trad swiftly replied: "No."

Ms Trad has also been under fire over the purchase of a $695,500 property near a proposed Cross River Rail station, a project for which she had ministerial responsibility, and failing to declare it on her register of members' interests within the required time frame.

Asked if she would sack her chief of staff and Ms Trad, Ms Palaszczuk said she guarded her integrity and the integrity of her government "at the highest order", arguing it was important to await the outcome of external investigations.

"If the CCC finds that there will be an investigation, the Deputy Premier will stand down," she said.

"That is the standard that I expect of my ministers and that is the standard I expect of this government."

Ms Palaszczuk dodged a question on whether she had told her ministers not to contact the CCC chair while they were under investigation, instead blasting the LNP for their treatment of the body.

"This is the same CCC that they took 25 jobs from when they were in government," she said.

During estimates last month, it was revealed Ms Trad called CCC chair Alan MacSporran one day before she referred herself to the corruption body, and after the LNP had referred the matter.

The CCC last week said it had paused its assessment of Mr Barbagallo's matter while the Ernst and Young audit, due to be completed by August 30, was ongoing.

The CCC is still assessing Ms Trad's matter.

In July, a Queensland government spokesman said initial conversations about the application for funding began in 2017, before Mr Barbagallo was hired as Ms Palaszczuk's chief of staff in May 2017.

The full application was made after Mr Barbagallo was hired.

However, the spokesman insisted Mr Barbagallo "removed himself from the application process as soon as he was employed by the Premier".