By Lucy Cormack and Tom Rabe
The Perrottet government has handed the corruption watchdog a copy of a scathing investigation which found an intervention by the office of the then-deputy premier John Barilaro diverted funding for a $100 million bushfire recovery program away from Labor-held electorates.
The Department of Premier and Cabinet provided the report exposing serious transparency failures to the Independent Commission Against Corruption (ICAC) on Friday morning, sidestepping NSW Labor leader Chris Minns who had earlier threatened to do the same.
John Barilaro leaves the Downing Centre Local court on Friday after assault charges were dismissed on mental health grounds.Credit: Kate Geraghty
A damning report by the auditor-general released on Thursday revealed that instead of following guidelines, the office of the then-NSW Nationals leader devised their own rules to fast-track money to areas hit by the 2019 Black Summer catastrophe – a switch that meant 96 per cent of projects funded were in Coalition-held seats.
Minns issued the former deputy premier a 24-hour ultimatum to explain the reasons behind the 2021 decision or have the matter referred to ICAC by Labor. The Labor leader’s office was drafting a letter to the ICAC on Friday afternoon.
“These are very troubling, independent revelations that seem to indicate for the first time, I think, in Australian history, the politicisation of rebuilding disaster grants for the people of this state,” Minns told reporters.
“If the culture of the government at the end of the day allows pork-barrelling on a giant scale, and you politically benefit from the manipulation of taxpayer funds, you have to take responsibility ... there needs to be an explanation.”
Prime Minister Anthony Albanese, former NSW Supreme Court judge Anthony Whealy, KC and Barilaro’s former colleagues were among other high-profile critics to express concern over the apparent politicisation of the disaster relief program.
“Quite clearly, it shouldn’t be politicised ... we all have a responsibility to deliver where it’s needed, not to deliver politically,” Albanese said.
The prime minister added that he believed the former federal Coalition government’s allocation of funding after the Northern Rivers floods had been politicised.
Whealy, who is a former assistant commissioner of the ICAC, backed Minns’ call for a corruption probe on Friday and said the watchdog need not wait for a referral.
“If it was a deliberate decision made for political gain it would easily fall within the definition of corrupt conduct in the ICAC legislation,” he told the Herald. “I say, prima facie, the auditor-general report reveals sufficient evidence to warrant an initial investigation by ICAC into the matter.”
The auditor-general’s report found Barilaro’s office did not follow guidelines but instead created its own rules to fast-track money to areas hit by the disaster. The office ruled there would be a $1 million threshold on projects without any documentation or records of conversations.
That change ultimately meant 21 out of 22 projects above the $1 million threshold would be funded in Coalition seats. Any projects under that figure were excluded without explanation.
Andrew Constance, a former NSW government minister and member for the South Coast seat of Bega which was heavily impacted by the Black Summer bushfires, said victims deserved answers.
Then-senior NSW Liberal MP Andrew Constance was personally caught up in the Black Summer bushfires.Credit: Sydney Morning Herald
“[Barilaro] needs to explain it,” he said. “Fire-affected communities deserve answers today. I understand it’s a politically-charged environment with an election on, but everyone needs to keep in mind that those who have been directly affected don’t need a gob full of politics.”
A spokesman for Premier Dominic Perrottet, who was treasurer at the time of the program rollout, said the Department of Premier and Cabinet had provided the auditor-general report to ICAC “for their information”.
He added that Perrottet had already acted to address pork-barrelling, including a strengthened Grants Administration Guide in September last year which require officials to prepare consistent guidelines for grant programs, eligibility and assessment criteria and the assessment process.
“The Labor Party should not politicise ICAC and listen to the recent advice from ICAC chief commissioner John Hatzistergos when he said, ‘It is inappropriate to weaponise a referral to the commission for attention or political advantage’,” the spokesman said.
‘I couldn’t imagine a scenario where John Howard, during the Millennium drought, cherry-picked National and Liberal Party electorates to give financial help.’
NSW Opposition Leader Chris Minns
The spokesman did not directly address the issues raised in the report about Barilaro’s office.
The auditor-general’s report is likely to raise fresh questions about pork-barrelling, which has plagued the Coalition since the 2019 election when it emerged the government spent the majority of a $250 million program in Liberal and National-held seats.
Barilaro has yet to respond to a request for comment about the bushfire grants. The Herald also approached him on Friday to comment on Minns’ ultimatum.
Minns said the former deputy premier must respond to the damning report.
“I couldn’t imagine a scenario where John Howard, during the Millennium drought, cherry-picked National and Liberal Party electorates to give financial help. I don’t think any leader in any party has ever done this before, and we need answers.”
Minns also acknowledged revelations that Barilaro had sought support to apply for the recently vacated chief executive position of embattled lobby group ClubsNSW, describing the bid as ridiculous.
“It’s a matter for ClubsNSW. But he’s absolutely not the person to lead that organisation or any independent organisation, in my view.”
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