Opposition flags possible conflict into audit of David Barbagallo’s involvement in app grant

Queensland’s Opposition has flagged a possible conflict of interest in an audit into the involvement of Premier Annastacia Palaszczuk’s chief of staff in a controversial grant payment.

OPPOSITION Leader Deb Frecklington has called into question the decision by the Premier’s director-general to ask Ernst & Young to audit her chief of staff David Barbagallo’s involvement in a controversial grant payment.

“I can now reveal that the partner from Ernst & Young was on the expert panel for Advanced Queensland that advised on the establishment of the business development fund at the time the grant was paid,” Ms Frecklington said in Question Time today.

Premier Annastacia Palaszczuk with her chief of staff during estimates hearings last month. Picture: Jono Searle/AAP

“How can Ernst & Young audit this grant given the clear conflict of interest?”

The Government’s Business Development Fund gave a grant of $267,500 grant to a company part-owned by Mr Barbagallo, Fortress Capstone Pty Ltd, for a cruise app.

The grant is being probed after Premier Annastacia Palaszczuk was blindsided by the payment during recent Budget Estimates hearings.

It is also before the Crime and Corruption Commission.

Mr Barbagallo has denied any wrongdoing and says he declared his interest as required and withdrew his involvement in the application process when he joined the Premier’s office in 2017.

Ernst & Young partner Winna Brown was on the Advance Queensland Expert Panel.

The Opposition alleges that panel was involved in the design of the Business Development Fund.

The Department of Premier and Cabinet has dismissed suggestions a conflict of interest exists.

“There was no one from Ernst & Young on the independent Business Development Fund investment panel,’ a spokesman for the department told The Courier-Mail.