Sports rorts triggered alarm ‘from the start’

Concerns about ­Bridget McKenzie’s involvement in a controversial $100m grants program were raised from the scheme’s inception.

­Nationals deputy leader Bridget McKenzie and Prime Minister Scott Morrison speaking to the media earlier this month. Picture: AAP

A Sport Australia insider has ­revealed concerns about ­Nationals deputy leader Bridget McKenzie’s involvement in a controversial $100m grants program were raised “consistently” from the scheme’s inception.

Lifting the lid on what the government agency knew, the insider told The Australian that the alarm was raised from the outset because — for the first time in Sport Australia’s history — ministerial ­approval was required to green-light grants.

A damning report from the Auditor-General, Grant Hehir, confirmed that apart from three grant programs implemented in 2018–19, Sport Australia’s board was not aware of previous schemes “in recent history that needed ministerial approval”.

The Australian understands concerns regarding the rollout of the Community Sports Infrastructure Grant program were raised from when the scheme’s application process first opened on ­August 2, 2018. They continued to mount throughout the administration of the scheme’s three rounds of funding allocations.

Senator McKenzie was delivered a further blow on Tuesday by the leaking of documents from March 2019 that flagged Sport Australia’s concern at her management of the grant program and how her office administered the funds. The ABC said it had ­obtained a spreadsheet prepared by the minister’s office in 2018 with a colour-coded breakdown of what party held the seats where potential projects were based.

Senator McKenzie is under pressure to resign over the scandal, with the head of the Prime Minister’s department, Philip Gaetjens, investigating whether ministerial rules were broken. Scott Morrison distanced himself from the scandal on Wednesday as he faced a slew of questions on the saga in his first major address of the year at the National Press Club.

The Prime Minister said the ­allegations raised in the Australian National Audit Office report were a “serious matter”, but rejected claims his office directed Senator McKenzie where to award funding. “All we did was provide information based on the repre­sent­ations made to us — as every prime minister has always done,” he said.

However, he conceded that while no rules were broken, some of the grants could have gone to more deserving projects.

“There are many, many, many more worthy projects in this area. I agree with that,” he said.

Mr Hehir’s inquiry found the former sports minister ignored recommendations by Sport Australia on which applications to ­approve before the election without apparent legal authority, favouring marginal and targeted seats. While Sport Australia’s ­initial checks weeded out non-­compliant applications, ensuring no ineligible groups were awarded funds, the report revealed Senator McKenzie’s office conducted a parallel assessment process to ­approve projects.

Mr Morrison on Wednesday denied taxpayer funds had been used for political benefit.

“That’s not why I did it and that’s not why the government did it,” he said.

Nationals frontbencher Darren Chester refused to publicly support Senator McKenzie on Wednesday. “The greatest deficit we face right now in Australian politics has nothing to do with the budget, it’s a deficit in the trust between us and the public we represent,” he told the ABC.