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The Auditor-General responded on 20 March 2020 to correspondence from Senator Larissa Waters dated 25 February 2020, requesting that the Auditor-General consider the process followed in approving the Adani Carmichael Coal Mine and Rail Project when conducting the audit Referrals, assessments and approvals of controlled actions under the Environment Protection and Biodiversity Conservation Act 1999.
20 March 2020
Senator Larissa Waters
Australian Greens Senator for Queensland
By e-mail: senator.waters@aph.gov.au
Dear Senator Waters
Commonwealth environmental approvals process for the Adani Carmichael coal mine
I am writing in response to your letter of 25 February 2020 requesting that I consider the process followed in approving the Adani Carmichael Coal Mine and Rail Project (2010/5736), particularly the approval of the groundwater management plans, in the scope of the in-progress performance audit Referrals, assessments and approvals of controlled actions under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act).
The objective of the audit is to assess the effectiveness of the Department of Agriculture, Water and the Environment’s administration of referrals, assessments and approvals of controlled actions under the EPBC Act. To form a conclusion against this objective, the following high-level criteria has been applied:
The audit will include an examination of referrals, assessments and approvals selected on a sample basis, consistent with ANAO Auditing Standards. The audit, due to be tabled in May 2020, is now in the report preparation phase.
Given that the audit is well progressed, and the previous scrutiny of the Adani Carmichael Coal Mine and Rail Project by the Federal Court, through freedom of information requests, and the Parliament through Senate Estimate hearings, I have decided not to extend the scope of the current audit.
Yours sincerely
Grant Hehir
25 February 2020
Mr Grant Hehir
Auditor-General
Australian National Audit Office
Barton ACT 2600
By email: grant.hehir@anao.gov.au
Dear Auditor-General
Commonwealth environmental approvals process for the Adani Carmichael coal mine
I write regarding the current performance audit being undertaken by ANAO regarding "Referrals, assessments and approvals of controlled actions under the Environment Protection and Biodiversity Conservation Act 1999” (‘EPBC Act Audit’).
I request that this audit consider the process followed in approving the Adani Carmichael Coal Mine and Rail Project (2010/5736), particularly approval of the groundwater management plans, in light of recent information regarding political donations.
On 3 February 2020, the Australian Electoral Commission published the 2018-2019 donor returns. Significantly, those returns reveal that Adani Group companies (via Adani Mining Pty Ltd and Carmichael Rail Network Pty Ltd) donated $247,000 to the Liberal and National parties. Of this amount, $12,500 was donated in the week prior to the decision by the former Environment Minister, Hon Melissa Price MP, to approve Adani’s groundwater management plans and $200,000 was donated in the month following that decision.
The Minister’s approval was made despite a scathing report from the CSIRO and Geoscience Australia that concluded:
The ABC at the time reported that Minister Price was under pressure from colleagues in the Queensland Liberal-National Party to approve the groundwater management plan before the Federal election was called (see https://www.abc.net.au/news/2019-04-09/adani-gains- commonwealth-groundwater-approval/10984134).
The 2018-19 AEC donor returns raise important questions about the integrity of the assessment. I request that the EPBC Act Audit specifically review the approvals granted by Minister Price in April 2019, including an examination of how scientific advice was considered and governance arrangements to ensure that approval decisions were not influenced by irrelevant considerations.
Yours sincerely,
Larissa Waters
Australian Greens Senate Leader
Spokesperson for Democracy, Mining & Resources