Auditor-General leaves door open to probing the State’s lucrative business development fund

Queensland’s Auditor-General has responded to an Opposition request to probe a business development fund, following a grant to a company part-owned by the Premier’s right-hand man.

QUEENSLAND’S Auditor-General has left the door open to launching his own investigation into the State Government’s taxpayer-funded Business Development Fund, after it awarded cash to a company part-owned by Annastacia Palaszczuk’s right-hand man.

The Courier-Mail can reveal Auditor-General Brendan Worrall has responded to a request from the LNP to probe the fund after it was revealed Fortress Capstone, a company of which Ms Palaszczuk’s chief of staff David Barbagallo is a shareholder and director, received $267,500 in co-investment to develop a smartphone app.

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He has told the Opposition he will review the audit already under way by the Department of Premier and Cabinet’s internal auditors Ernst & Young – due to report back by August 30 – before deciding if any further action was necessary,

Premier Annastacia Palaszczuk speaks with chief-of-staff David Barbagallo during Estimates hearings.

“I note your concerns with the accountability and transparency of the BDF’s processes including, the application process, whether investments fulfil stated purposes and whether Queenslanders are receiving a return on their investment,” Mr Worrall wrote in his letter to LNP Deputy Leader Tim Mander.

“I also note your specific concerns around the BDF’s investment in Fortress Capstone and the management of conflicts of interest.

“I am aware that the Acting Director-General of the Department of the Premier and Cabinet has engaged their internal auditors, Ernst & Young to review the transaction between the BDF and Fortress Capstone with a report due by August 30, 2019.

“I will review the scope of this engagement, and the outcomes of the review performed by Ernst & Young.

“Once I have had the opportunity to review and assess these outcomes, I will then consider the actions, if any, I will take to address the broader concerns raised in your letter.”

Mr Mander welcomed Mr Worrall’s response.

“Given that a significant amount of taxpayers’ money has gone to a company part-owned by Annastacia Palaszczuk’s right-hand man, Queenslanders deserve reassurance that this won’t be another Labor cover-up,” he said.

Mr Mander said the auditor-general should be involved in determining the terms of reference of the EY audit.

Those terms of reference have yet to be made public with a DPC spokesman saying yesterday they were still being developed.