The Liberals want an audit of any ACT projects that have used Commonwealth money in the past six years (such as the Molonglo River bridge project). Photo: ACT Government.
Union interference in a major Territory project – which led to serious corrupt conduct findings and a minister’s resignation – has seen the Canberra Liberals call for an audit of all Commonwealth monies used by the ACT Government for infrastructure projects.
Leader Mark Parton and Liberal Senate candidate Nick Tyrrell want Finance Minister and ACT Labor Senator Katy Gallagher to back their call.
The pair sent her a letter asking her to support an Australian National Audit Office (ANAO) performance audit of Commonwealth infrastructure and grant funding administered by the ACT Labor Government over the past six years.
They also want guarantees that Commonwealth funding agreements require assurance on procurement integrity.
“What [the Integrity Commission report’s] finding establishes … is that a procurement inside the ACT Government’s orbit was deliberately corrupted,” the pair wrote.
“That raises a fair and serious question for federal taxpayers, and it is one only you can answer.”
They argued the ACT Government administered a “very large volume” of Commonwealth money, pointing to almost $400 million towards light rail stage 2, along with contributions to the Monaro Highway, William Hovell Drive, Molonglo River bridge and other projects.
“As Finance Minister you are responsible to the Parliament for the integrity of the Commonwealth Procurement Framework and for value for money on Commonwealth outlays,” Mr Tyrrell and Mr Parton wrote.
“You cannot certify that federal taxpayers are receiving value for money on funding you cannot see, administered by a government that has now been found to have corrupted a procurement.
“This is not a partisan request. It is a request that the Commonwealth satisfy itself, on behalf of the taxpayers who fund these projects, that the conduct found in one procurement has not occurred in others.”
The minister was asked to respond by 8 August.
Integrity Commission Michael Adams KC told budget estimates that he didn’t regard the CFMEU’s involvement in the procurement of the $18.2 million Campbell Primary School expansion project as a one-off.
He also stated that while previous presentations may have been made by unions, that didn’t necessarily mean they were successful.
Mr Parton said the only responsible way forward was to check whether interference had in fact been successful in other projects.
“This Labor Government awarded a $577 million light rail contract with no competitive tender, buried its business cases for years, and refused Freedom of Information access to its own project costings,” he said.
“That is a pattern of secrecy, and secrecy is exactly what lets this kind of conduct go unchecked.”
Mr Tyrrell said Ms Gallagher’s position meant she was the person best placed to push the ANAO to act.
“Canberrans deserve to know their money is clean, and so does every taxpayer in Sydney, Melbourne and Brisbane whose taxes help build this city,” he said.
“The minister should back an audit. If she will not, she should explain why not.”
Mr Parton and Mr Tyrrell said they would make the minister’s response public.
Commonwealth funding for land transport infrastructure is administered under the National Land Transport Act 2014 and is governed by the Federation Funding Agreement Schedule Land Transport Infrastructure Projects (FFAS) 2024-2029.
Such projects are also under the Public Governance, Performance and Accountability Act 2013.
Region was informed by an Australian Government spokesperson that Mr Parton and Mr Tyrrell would receive a response from Federal Infrastructure Minister Catherine King.
“The Albanese Government has a zero tolerance for criminal behaviour in the construction industry. That’s why the government took the strongest possible action by placing the CFMEU into administration, and that important work is continuing,” they said.
“We are committed to cleaning up the industry because there is no place for criminal behaviour on construction sites.
“We have strengthened funding agreements with states and territories to provide assurances that any allegations of criminal behaviour on Commonwealth-funded projects are reported to the relevant authorities.
“Anyone who has evidence of criminal behaviour is strongly encouraged to raise their concerns with the relevant agencies.”
Several changes have been made to the ACT’s procurement rules since the 2019 Campbell Primary School modernisation project.
Region contacted the ANAO for comment.
Original Article published by Claire Fenwicke on Region Canberra.
