The Morrison government should fund all projects recommended by Sport Australia but rejected by then-minister Bridget McKenzie in the sports rorts scandal, a parliamentary inquiry has recommended.
The Senate inquiry examining the $100m Community Sports Infrastructure Grant program released its report on Thursday. It calls for clubs that missed out due to McKenzie’s ministerial intervention – which the auditor general found skewed the program towards marginal and target seats – to receive funding belatedly.
The Labor-controlled upper house committee, chaired by Anthony Chisholm, concluded there was “overwhelming evidence” the government used the program to gain political advantage – although Coalition senators disagreed.
“The evidence available to the committee indicates clearly the prime minister’s office, and likely the prime minister, were aware of the use of electorate information to identify projects in marginal and targeted electorates well before the first grant recipient was announced,” the majority report said.
The Labor and Greens senators cited the fact that nine of the 10 electorates that received the most funding were identified as marginal or target seats.
It noted Scott Morrison’s office provided input on grant recipients, and that 15 versions of a colour-coded spreadsheet sorting grants by electorate passed between the PM’s office and McKenzie’s office.
During the third round of the program, the prime minister’s office requested revisions to the list of approved projects due to certain projects being funded through other grant programs, the report stated.
Although access to unredacted versions of the colour-coded spreadsheet was blocked, most of the committee concluded that consideration of projects by electorate turned the program into a “$100 million pre-election slush fund”.
Other than a conflict of interest with one grant recipient that prompted her resignation, McKenzie has consistently denied any wrongdoing in the administration of the program.
Morrison has denied any formal role in the program, arguing that McKenzie was the ultimate decision-maker for grants.
The majority report concluded there were “significant unanswered questions” about the program due to “obstruction and lack of transparency by the government”.
It cited 20 instances where the government blocked access to documents by claiming release would harm the public interest or breach cabinet confidentiality or the privacy of sports grants applicants.
The committee recommended a further review of Sport Australia and other agencies’ powers to make grants.
It recommended the Senate attempt to force the government to release documents including:
The legal advice about Sport Australia’s authority to make the grants.
The full list of applications recommended for funding by Sport Australia.
The Gaetjens report clearing McKenzie of all wrongdoing except the conflict of interest.
A talking points document written by McKenzie’s senior adviser to prepare for a meeting with the prime minister to lobby to expand the program.
McKenzie denies ever having seen the document which, the Australian National Audit Office revealed to the inquiry, set out how expanding the program from $30m to $100m could help fund 109 more projects in marginal and target seats.
On Thursday, a Senate motion to force the production of documents was blocked 30 votes all.
In the minority report, Liberal Eric Abetz and National Matt Canavan said the program was an “outstanding success”, noting that Labor had never opposed any of the successful grant recipients receiving funding.
It said the inquiry had been a “highly politicised and weaponised exercise”.
The dissenting senators said marginal and target seats “were not more successful in having grants awarded than other seats” and there was “no evidence” McKenzie’s decisions were skewed towards them.
The $100m program is the subject of a federal court challenge from Beechworth Lawn Tennis Club which argues McKenzie lacked the legal authority to make sports grants.
