Michaelia Cash denies pork barrelling allegations after Auditor-General’s scathing ScoMo grants report

A scathing report has labelled a Morrison-era pre-election grants program as “falling short of ethical requirements”, but Liberals deny one thing.

Senior Liberal Michaelia Cash has denied the former Morrison government was complicit in pork-barrelling after a scathing auditor-general report into a health and hospital grant program.

The report by the Australian National Audit Office into the community health and hospitals program found the Department of Health’s administration of the program was “ineffective and fell short of ethical requirements”.

The $1.25bn program was announced just five months before the 2019 election, and a further $747m was committed for associated projects. The funds were distributed to primary health networks and state and territory governments to try to ease pressure on hospitals and community health services.

The report found grants were awarded to health projects despite being inconsistent with the rules for awarding Commonwealth funds.

Scott Morrison announced the grants program just prior to the 2019 election as a way to ease pressure on hospitals and community centres. Picture: NCA NewsWire /Philip Gostelow

The audit found the governance to be ineffective, with more than 50 per cent of the successful grants coming outside the official expression of interest period. Moreover, nearly half of all projects – 45 per cent – were in marginal seats.

The audit found just two of the projects were “highly suitable”.

The audit said the Department of Health’s effective administration of the funding arrangements under the program was undermined by “deliberate breaches of the Commonwealth grants rules and guidelines” and a “failure to advise government where there was no legislative authority for grant expenditure”.

Senator Michaelia Cash has denied the grants scheme was pork barrelling. Picture: NCA NewsWire / Gary Ramage

Senator Cash – the opposition’s spokesperson for workplace relations and attorney-general – denied the scheme was a method of pork-barrelling in the lead-up to the 2019 election.

“That program itself was actually developed to deliver local health and hospital services in every state and territory,” she told ABC radio.

“The Albanese Labor government has continued to use this grant program to support health services across the country.”

The scathing report made four key recommendations, including ensuring advice to government was consistent with the Commonwealth’s grants rules.

Senator Cash said the opposition would support the action necessary to implement the recommendations in the health department.

“It is important that there are robust processes … between the department and the ministerial office to ensure that the programs are implemented effectively and following proper process,” she said.

“We would support any sensible actions taken by the department to strengthen those robust processes.”

Originally published as Michaelia Cash denies pork barrelling allegations after Auditor-General’s scathing ScoMo grants report