Infrastructure Minister Catherine King has declined to express confidence that federally funded projects in the ACT are free from corruption, while Finance Minister and ACT Labor senator Katy Gallagher accuses the Liberals and David Pocock of playing politics on the issue.
Ms King defended her decision not to order an independent audit in the wake of corruption findings involving the CFMEU, as demanded by the Canberra Liberals.
"States and territories [must] report to me if there are any incidences of criminal activity on federally funded code projects," Ms King told reporters in Parliament House on Monday.
"We receive those reports regularly. They're reported in Senate estimates, and I am very confident that the systems we have in place and the requirements that are in place under those federated agreements are right."
When pressed by The Canberra Times on whether she was "confident that there's no corruption in federally funded ACT projects," the minister would not directly answer.
"I'm confident that the reports that I get from the ACT government in relation to federally funded infrastructure projects comply with the FFA [Federation Funding Agreements] as they are required," she said.
The Australian Financial Review asked the minister why the territory would "say there's corruption, given the CFMEU exercises such control over the ACT government?"
She repeated her earlier response about the jurisdictions being required to "report where there have been incidences of criminal activity [or] reports to them."
"I'm confident we are continuing to build that system," Ms King said.
The Liberals' request for an independent probe aimed to establish whether union influence had cost taxpayers more in the ACT on federally funded projects, after the ACT Integrity Commission found the former head of the Education Directorate and then education minister Yvette Berry's former chief of staff had engaged in serious corrupt conduct in the handling of a school expansion tender.
The investigation found a top public servant and senior ministerial staffer had acted corruptly to favour the interests of the CFMEU in the awarding of the tender.
Ms Berry was cleared of wrongdoing by the corruption watchdog but resigned from cabinet, taking responsibility for her staffer's actions.
Senator Gallagher referred a letter from ACT Opposition Leader Mark Parton and Liberal ACT Senate candidate Nick Tyrrell, backed by ACT independent senator David Pocock, demanding an audit of all federal infrastructure spending, to Ms King.
Liberal ACT Senate candidate Nick Tyrrell accused Senator Gallagher, whose office had referred all questions on the issue to Ms King as the minister in charge, of "dodging the difficult questions."
"On the potential for corruption in federally funded projects, Senator Gallagher continues to dodge accountability to taxpayers in Canberra, and nationally," Mr Tyrrell said.
Senator Gallagher later told ABC Canberra breakfast host Ross Solly that "the arrangements in place are very strict."
"I'm out and about all the time on construction sites," she said.
"I've been visiting the National Security Office precinct here in the last little while. I haven't had concerns raised with me about Commonwealth projects."
Senator Pocock said that, given the findings of the ACT Integrity Commission's Operation Kingfisher investigation, "I think it's entirely appropriate for the federal infrastructure minister to initiate an independent audit of all Commonwealth-funded infrastructure projects in the ACT."
"Unfortunately, there aren't that many," he said.
"While the minister may point to the processes she has in place, I think it's important to acknowledge that community trust has been undermined and an independent audit would be an important step in restoring that."
Senator Gallagher said the Kingfisher report related to "an ACT government-funded project" and that "my political opponents are trying to make a political issue about a project that had no Commonwealth funding."
"Projects that have Commonwealth funding attached to them, we run the ruler over those."
Integrity Commissioner Michael Adams told a recent ACT budget estimates hearing it would be "unreal" to think a union's intervention that led to its preferred contractor being handed work on a primary school upgrade, despite it costing more, was the first time they had tried.
Federal funding agreements state that "any allegations or instances of criminal behaviour or corruption" must be "reviewed and reported to the appropriate regulator" by the state or territory in charge of the project.
Ms King introduced this requirement in 2024 after the Coalition raised concerns.
Up until May this year, there were 63 such reports of alleged unlawful behaviour on federally funded infrastructure projects nationally, including corruption and fraud.
Opposition transport and infrastructure spokesperson Bridget McKenzie has been seeking an updated figure through Senate estimates.
