Audit of new reef funding a priority, says top bureaucrat

A top environmental bureaucrat has urged an investigation into a $444 million grant to a Great Barrier Reef charity.

Controversy surrounds a $444 million grant to a Great Barrier Reef charity. Picture: Getty Images

Australia’s top environmental bureaucrat has urged the Auditor-General to fast-track an investigation into the awarding of a $444 million grant without tender to a Great Barrier Reef charity, as Environment Minister Josh Frydenberg detailed the “extensive process” behind the decision.

Mr Frydenberg yesterday told parliament that he had recommended to cabinet’s expenditure review committee the partnership with the Great Barrier Reef Foundation on the basis of the charity’s track record, its past work with government, and initial due diligence by his department.

But Labor ramped up its attack over the grant that was awarded before the government received a detailed proposal from the charity. “Why is this Prime Minister so careless with taxpayers’ money?” Bill Shorten told parliament.

Mr Frydenberg said he approved the grant based on the recommendation of his department that it offered value for money, would protect the reef, and was consistent with governance and accountability rules. “There was an extensive process of my department working together with the foundation,” he said.

Environment Department secretary Finn Pratt yesterday wrote to Auditor-General Grant Hehir, urging him to bring forward a proposed audit of the arrangement.

“Given the intense public and media interest over the last few weeks, I consider such an audit has become a priority and ask that you consider approving it going ahead and starting as soon as practicable,” Mr Pratt wrote.

The head of the Great Barrier Reef Foundation, which had just six full-time staff when it received the funding windfall, yesterday said she was unaware the department had conducted initial due diligence into its ability to administer the funding.

“I wasn’t (contacted). I wasn’t aware that the diligence process was under way, no,” foundation managing director Anna Marsden told ABC radio.

Ms Marsden said the foundation learned on April 9 it would receive the money and “afterwards we had to do an application”.

The Australian can reveal the department did not seek endorsement for the proposal from the board of the Great Barrier Reef Marine Park Authority, the peak oversight body for the reef.

Authority chairman Russell Reichelt, who is also on the foundation’s board, knew about the grant for “a few weeks” before it was made public.

But his spokeswoman said Dr Reichelt did not share the information with the authority’s board because it included “cabinet-in-confidence budget details”.

Labor environment spokesman Tony Burke said: “This deal, from beginning to end, has been an inappropriate and dodgy use of taxpayers’ money.”

The foundation spent just 57.5 per cent of the funds it raised from 2007 to 2017 on “science investments”, with the remainder going to employee benefits, office space and other business costs.