Auditor-General asked to investigate the $4.8bn Urban Congestion Fund

The Auditor-General will be asked to urgently investigate the $4.8bn Urban Congestion Fund.

Urban Infrastructure Minister Paul Fletcher. Picture: Getty Images

The Auditor-General will be asked to urgently investigate the $4.8bn Urban Congestion Fund, amid concerns the Morrison government’s maladministration of the Commuter Car Park Projects fund is just the “tip of the iceberg”.

A scathing report from the Australian National Audit Office in late June, revealed that the $660m commuter carpark fund, which was ­established within the UCF, was not effective, with almost 90 per cent of projects being in ­Coalition-held or targeted seats, and none of the 47 carpark projects selected by the department.

Signed by opposition infrastructure spokeswoman Catherine King and opposition cities and urban infrastructure spokesman Andrew Giles, their letter to the Australian National Audit Office has asked the Auditor-General to examine more than 100 infrastructure projects not considered in the original report.

“Given that this report examined only one component of the Urban Congestion Fund, I now ask that you consider undertaking a broader inquiry into the entirety of the fund,” the letter states.

“It is our clear belief that this ­inquiry should be undertaken as a matter of urgency, particularly given that the 2021-22 (federal) budget outlines plans to spend over $2bn out of this fund over the next two years.”

So far, 177 projects have been selected for funding under the UCF, 43 of which are commuter carparks that were examined by the Audit Office.

In his initial report, Auditor-General Grant Hehir found that there had been a lack of engagement with then minister Alan Tudge’s office and state and local governments that increased the risk the selected projects would not “deliver the desired outcomes at the expected cost to the Australian government”.

As The Australian revealed, the lack of assessment saw the cost of the carpark projects blow out by at least $70m. This included carparks in Berwick in Victoria, and Panania and Woy Woy in NSW, with the latter two ballooning out by more than 522 per cent and 434 per cent respectively.

Urban Infrastructure Minister Paul Fletcher has committed to implement all six recommendations made by Mr Hehir, which include requiring the Department of Infrastructure to undertake sufficient inquiries to demonstrate that funding candidates are eligible for approval.

The most recent budget ­forecast the UCF would spend $775.6m over the 2021-22 financial year and $1.36bn in 2022-23.

Ms King said the carpark fund was just the “tip of the iceberg”.

“Taxpayers need transparency about where this money is being spent and why,” Ms King told The Australian.

“You don’t need to be a genius to know what is going to happen next. Money will flow to Liberal seats, not to the communities that need it the most.

“With an election on the horizon, the Prime Minister plans to spend $2.1bn through the Urban Congestion Fund over the next two years alone.

“There is nothing stopping him rorting this fund, just as he did with the car parks.”

In a statement, a spokesman for Mr Fletcher said that he expected 90 per cent of the 177 projects to be under ­construction or completed by the end of 2022.

“While Labor spends its time calling for inquiries and political pointscoring, the Morrison government will continue to deliver game-changing infrastructure for our cities and regions,” he said.