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The Auditor-General responded on 2 May 2022 to correspondence from Senator Rex Patrick dated 5 April 2022, requesting that the Auditor-General conduct an investigation to examine the process in making statutory and other senior appointments across the whole government over the six months preceding the application of caretaker conventions prior to the 2022 Federal election.
2 May 2022
Senator Rex Patrick
Senator for South Australia
By email: Senator.Patrick@aph.gov.au
Dear Senator Patrick
Appointments to government bodies prior to the 2022 Federal election
I am writing in response to your letter of 5 April 2022 requesting an audit of Australian Government statutory and other senior appointment processes in the six months preceding the application of the caretaker period.
In April and May 2019, the Australian National Audit Office (ANAO) presented a series of audits that reviewed whether the boards of four corporate Commonwealth entities had established effective arrangements to comply with selected legislative and policy requirements, and adopted practices that support effective governance:
The observations from this series of audits are outlined in the ANAO’s May 2019 edition of Audit Insights and includes key messages that may be relevant for the operations of other boards as well as broader governance arrangements in Commonwealth entities. Specifically in relation to appointment processes, the ANAO assessed the extent to which the entities complied with the relevant legislative requirements for the membership and appointment of board members. The ANAO identified that there would be benefit in the selected boards engaging with their respective portfolio department and ministers in relation to the skill requirements for future board appointments to achieve the optimum skill mix.
The ANAO is currently conducting a further series of audits examining the effectiveness of the governance boards of the following three entities, due to table in the Parliament in June 2022:
In addition, the ANAO has commenced work on an information report on public sector governing boards membership reporting, due to table in June 2022. The objectives of this information report are to:
In the context of this work the ANAO has and is undertaking relating to appointments, I will consider the matters you have raised as part of the development of the ANAO’s Annual Audit Work Program 2022–23.
Yours sincerely
Grant Hehir
Auditor-General
Mr Grant Hehir
Auditor-General
Australian National Audit Office
GPO Box 707
Canberra ACT 2601
Dear Grant
I write regarding the recent announcements concerning appointments to the Administrative Appeals Tribunal (AAT), The Australia Council board, Murray-Darling Basin related bodies and the National Disabilities Insurance Agency Board.
It has been brought to my attention that recent appointments to the AAT include people with links to the Liberal Party, including those with no legal experience and who otherwise appear to lack special knowledge or skills relevant to the duties of a senior member or member of the AAT as required by the Administrative Appeals Tribunal Act 1975.
I note that a recently departed NSW Minister has been appointed to the Australia Council board.
I further note the concerns of Murray-Darling Basin stakeholders in the appointment of a former Liberal National Party MP from the northern basin in reviewing the delivery and reliability of water rights across the southern basin.
Finally, a former Victorian Liberal Premier has been appointed to the National Disability Insurance Agency board.
More broadly it is far from clear whether the processes leading to a range of recent Government appointments of statutory and other offices, obviously made in a rush before the imminent Federal election, are consistent with the Government's Merit and Transparency Policy.
Accordingly, I am asking you to investigate the process in making statutory and other senior appointments across the whole government over the six months preceding the application of Caretaker Conventions prior to the 2022 Federal election.
I would recommend that such a review by your office should include advertising of roles, candidate shortlisting and due diligence in respect of the qualifications, experience, background and appropriateness of the appointments.
Yours sincerely
REX PATRICK
5/4/22