Questions are being raised about why a foundation which appears to have no staff or office has had $18 million set aside for it by the federal government.
This year's budget included the establishment of a multi-million-dollar scheme known as the Australian Future Leaders Program.
The budget papers show the government plans to provide $18 million over five years from 2021-22, and an additional $4 million per year after that.
Under questioning during Senate estimates, John Reid from the Department of Prime Minister and Cabinet (PMC) confirmed the money would be handed to a foundation called The Australian Future Leaders Foundation Limited.
Mr Reid said it appeared the foundation had no office, website or staff, apart from its directors Chris Hartley and Julie and Andrew Overton.
He also confirmed there had been no tender process.
"We are currently negotiating an agreement with that foundation to deliver the program," he said.
"We have done a range of due diligence on Mr Hartley and on the program he is proposing to support."
NSW Labor senator Tim Ayres questioned how the money could be handed to a foundation that was established last year and had no public record of previous leadership experience.
"They have put the cart before the horse, they have delivered the money without having any evidence that it's going to deliver real results for Australians."
ASIC documents show the foundation was established in April last year and it registered as a charity with the Australian Charities and Not-for-Profits Commission (ACNC).
It lists a Barangaroo address as its registered office, but that address is currently occupied by a law firm.
In the December budget update, the government amended the tax law to list the foundation as a deductible gift recipient (DGR), which means it can receive donations that are tax deductible and backdated to July 2021.
Labor questioned whether the process to approve the DGR status was quicker than usual.
While Mr Reid could not answer that specific question, he outlined what he knew about the process.
"PMC was involved in discussions about its status … I understand they applied for DGR status," he said.
Department of Treasury manages DGR applications and the ABC has approached it for comment.
Program first proposed to Governor-General
Mr Reid said PMC started setting up the program after Mr Hartley outlined his proposal to Governor-General David Hurley, whose office discussed it with the department.
"That's a program we've been working with the office of the official secretary to the Governor-General on, and it will be delivered in collaboration with that office," he told Senate estimates.
The terms and conditions of the funding agreement between the Department of the Prime Minister and Cabinet and the Australian Future Leaders Foundation have not been settled but Mr Reid outlined what the program was likely to include.
"This is modelled on a couple of similar leaders forums elsewhere in the Commonwealth, notably Canada and I think India, which will draw together young leaders from both the public and the private sector and link them with mentors and mentoring arrangements to give them access to both business and government at a high and senior level to ensure that they are being developed and given the right levels of mentoring," he said.
Finance Minister Simon Birmingham insisted the proposal came through the "normal policy proposal processes".
"I remember the proposal crossing my desk at a point in time because it's unusual to see a proposal … that cites the Governor-General," he said.
In a statement to the ABC, a spokesman for the Office of the Official Secretary to the Governor-General confirmed that both the office and the Governor-General had been involved in the design of a new leadership initiative over the past two years.
"The Governor-General met Mr Chris Hartley, the Executive Director of the Australian Future Leaders Program in July 2020," the statement said.
"The Governor-General does not have a relationship with Mr Hartley (other than discussions about the Australian Future Leaders Program and briefly meeting in 2019 around the 100th anniversary of the Peace Rowing Regatta).
"The Governor-General supports the Australian Future Leaders Program and intends to serve as its inaugural Patron.
"It is important to note that the Governor-General is not involved in government funding decisions. Similarly, the Governor-General has not been involved in the establishment of, and has not and will not be involved in the administration of, the Australian Future Leaders Foundation.
The Governor-General's office said the design had been informed by extensive consultation with more than 100 stakeholders and it had the support or 13 university vice-chancellors.
Despite the foundation being operational for just one year with no evidence of work it has completed in that time, the Governor-General's official secretary, Paul Singer, backed Mr Hartley's credentials during an appearance before Senate estimates.
"He (Mr Hartley) has been involved with the Commonwealth Study Conference … he's been involved in similar leadership programs in Malaysia," he said.
"He's been an active contributor to a program that's been run here in Australia in the past which has had similar characteristics to this program but not the depth and the breadth of the program that has been suggested in this format."
Mr Singer indicated the foundation was in the process of finalising its board and he was aware of who had been approached but he would not list names.
He also said he was not aware of the foundation having any other staff or an office, but both the Prime Minister's Office and opposition had been consulted.
Senator Ayres said it was the government's job to determine if proposals were worthy of money and in this case he questioned its decision.
"It's absolutely apparent that this work hasn't been done in this scenario.
The Prime Minister's Office said neither the Prime Minister nor his office had met with Mr Hartley but it said in a statement it supported the program.
"The program aims to develop mid-career leaders and an alumni network for future leaders in Australian business, government, education and not-for-profits. The program lead will design it in close consultation with PMC," a spokesman said.
