Labor frontbencher furious over government rort allegations

Deputy PM Michael McCormack says Labor are hypocrites over the sports rorts affair, claiming a top opposition frontbencher gave out ineligible grants while serving as a minister.

• Sports rorts: bureaucrat backs McKenzie
• Sports rorts: Almost half of projects ineligible

Scott Morrison and Michael McCormack have been labelled liars for defending the Coalition’s controversial handling of a $100 million sports grants scheme by arguing Labor’s Catherine King did worse when she was a minister.

The Deputy Prime Minister on Friday claimed the Australian National Audit Office (ANAO) had found the Coalition only funded eligible sports infrastructure projects, in contrast to “damning” findings against Ms King — including that she funded ineligible applications when Regional Services Minister.

“She funded so many ineligible projects that she received a damning report,” Mr McCormack said, so “Labor needs to be a little bit careful when it starts pointing the finger at us.”

Prime Minister Scott Morrison and Deputy Prime Minister Michael McCormack arrive for Question Time. (Picture: AAP Image/Mick Tsikas)

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Mr Morrison recently told the National Press Club the ANAO found Ms King “gave money to ineligible projects”.

However, Ms King yesterday said the ANAO report into the $226 million Regional Development Australia Fund showed she had not given money to ineligible projects.

“The prime minister and his deputy are so desperate to deflect from their involvement in rorting government grants programs they have resorted to lying,” a spokesman for Ms King said.

Labor’s Catherine King is under fire over how she allocated money to government-funded projects while a minister. (AAP Image/Lukas Coch)

The attack further undermines the government’s justification of Bridget McKenzie’s handling of sports grants. It comes after ANAO executive director Brian Boyd revealed on Thursday 43 per cent of the projects funded by the Nationals senator were ineligible.

Mr Boyd’s comments were a surprise because the ANAO’s report on the sports grants scheme, released in January, had said no applications assessed as ineligible by Sport Australia were awarded grant funding.

But under questioning by Liberal Eric Abetz at a Senate inquiry, Mr Boyd revealed many “late applications were taken on board, which were ineligible”, as were hundreds “where the project had started before the funding agreement was in place, which is also ­ineligible”.

Ms McKenzie was forced to resign from the ministry and as Nationals deputy leader over the saga.