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Request for audit
Grant funding from the Connections Project
Response provided
Responded: Tuesday 27 November 2018
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The Auditor-General responded on 27 November 2018 to correspondence from Senator Hanson-Young dated 26 October 2018, requesting that the Auditor-General conduct an investigation to examine the use of grant funding from the Connections Project.
Auditor-General's response
27 November 2018
Senator Hanson-Young
Australian Green’s Senator for South Australia
By email: Senator.Hanson-Young@aph.gov.au
Dear Senator Hanson-Young
Thank you for your correspondence of 26 October 2018 in which you raise concerns in relation to grant funding administered as part of the Goulburn-Murray Water Connections Program (Connections Program) in 2011.
The Connections Program is being delivered in two stages by Goulburn-Murray Water, a Victorian statutory Corporation, under agreements with the Victorian Department of Environment, Land, Water and Planning (DELWP). The Commonwealth Department of Agriculture and Water Resources (DAWR) has advised that the first stage of the Connections Program was fully funded by the Victorian Government and the second stage is substantially funded by the Commonwealth Government, under an arrangement between DAWR and DELWP.
DAWR have informed me, on advice from DELWP, that the matter you raised was initiated in 2010 and relates to stage one of the Connections Program.
I note that stage one of the Connections Program was part of an investigation by the Victorian Ombudsman in 20111.
Considering that no Commonwealth funding was provided for stage one of the Connections Program, and the external review that has already been undertaken by the Victorian Ombudsman, I have decided not to conduct an audit of the matter you’ve raised. You may wish to refer the matter to the Victorian Auditor-General’s Office.
Yours sincerely
Grant Hehir
Auditor-General
1 https://www.ombudsman.vic.gov.au/Publications/Parliamentary-Reports/Investigation-into-the-Foodbowl-Modernisation-Proj
Correspondence from Senator Hanson-Young
Transcript of letter from Senator Hanson-Young
Friday, October 26, 2018
Mr Grant Hehir, Auditor General
Australian National Audit Office GPO Box 707
Canberra ACT 2601
Dear Mr Hehir,
I write to you in relation to the concerning reports that a National Party executive received $850,000 in grant funding from the Victorian-Australian Government administered Connection Projects in 2011. It has been reported in today's Sydney Morning Herald and other publications that this money was granted for drought-proofing projects but has not been spent as it was intended.
I have enclosed a copy of the article for your reference.
Drought is a serious issue in Australia, and one that has particular significance today. As farming communities are struggling to grow crops and feed stock, it is greatly concerning to learn that drought-efficiency projects that were funded in 2011 have not been delivered. We may be seeing a different situation on our farmland across the country now had it been appropriately managed.
The journalists who broke the story have made reference to leaked files that document the delivery of the grant and the consequent dispute between Nationals Treasurer Peter Schwartz and Goulburn Murray Water.
In light of these allegations, I write to request you as Auditor-General investigate the matter.
If you have any questions please do not hesitate to contact my office. I am also available to meet you to discuss this issue further if you wish.
Yours sincerely,
Sarah Hanson-Young
Australian Greens Senator for South Australia
Note: Senator Hanson-Young's correspondence included an attachment with the media article Top Nat banked drought funds. Sydney Morning Herald 26/10/2018.