Sports rorts affair (2020)

Last updated

The "sports rorts" affair, also called the McKenzie scandal, [1] is a scandal involving the Sport Australia's Community Sport Infrastructure Program that engulfed Senator Bridget McKenzie, the then Minister for Sport in the Morrison government commencing in February 2019.

Contents

On 15 January 2020, the Australian National Audit Office published a report into the Community Sport Infrastructure Program titled 'Award of Funding under the Community Sport Infrastructure Program'. The report had two main conclusions: the award of grant funding was not informed by an appropriate assessment process and sound advice and the successful applications were not those that had been assessed as the most meritorious in terms of the published program guidelines. [2] The outcomes of the report resulted in extensive media coverage due to Minister McKenzie using her ministerial discretion to favour marginal or targeted electorates in the allocation of grants in the lead up to 2019 Australian federal election. [3] [4] [5] [6]

The scandal was compared to the sports rorts affair in 1993–1994 that resulted in the resignation of Ros Kelly, Minister for Sport in the Keating government. [7] [8]

Background

The Community Sport Infrastructure Grant Program was established by the Turnbull government as part of its 2018 Australian federal budget, which allocated A$27.9 million for the program. [2] The December 2018 Mid-Year Economic and Fiscal Outlook (MYEFO) and 2019 Australian federal budget allocated a further A$30.3 million and A$42.5 million to the program with the total allocation of A$102.5 million.

The aim of the program was for more Australians to have access to quality sporting facilities, encouraging greater community participation in sport and physical activity. [2] Sport Australia was given the responsibility for administering the program and its guidelines identified three aspects with appropriate weightings: community participation (50%); community need (25%); and project design and delivery (25%). [2] However, Sports Australia did not establish a framework for assessing the three aspects inline with the program objectives. The decision-making process involved Sport Australia assessment panel assessing applications, all eligible applications subjectively assessed as meeting the criteria were submitted to the Sport Australia board for its endorsement and the Minister for Sport identified as the final funding decision-maker as to the extent the proposal met the program objectives. Applications opened on 2 August 2018 and closed on 14 September 2018. Sport Australia received 2056 project proposals seeking more than A$396.6 million in Australian government funding. Funding totalling A$102.5 million was approved for 684 projects, which due to the large number and great variety, were assessed in three rounds completed in December 2018, February 2019 and April 2019. [2]

The program came under media and the Australian Labor Party Opposition attention when Georgina Downer, Liberal Party of Australia candidate for Mayo was photographed in presenting a mock cheque for A$127,373 to the Yankalilla Bowling Club in February 2019. [9] This presentation was not approved either by the Government or Sports Australia, but was the initiative of the candidate as part of her electioneering. The Shadow Attorney-General, Mark Dreyfus requested that the Australian National Audit Office (ANAO) investigate the management of the program. [2]

ANAO report

The Australian National Audit Office (ANAO) on 15 January 2020 released its report titled "Award of Funding under the Community Sport Infrastructure Program". The ANAO found there were two processes in awarding grant: Sport Australia providing ranking lists based on three factors which were subjectively assessed, and the minister's office later produced a list based on its subjective assessment that the proposal was more in line with the programs objective, with a colour-coded spreadsheet highlighting types of electorates. [10] [11] The report found that in the first round, 91 of the projects (41%) approved by the Minister were not on the preliminary list endorsed by the Sport Australia board. In the second round, 162 (70%) of the projects initially recommended were not included, and in the final round 167 (73%) of the approved projects had not been initially recommended by Sport Australia. [12] [13] ANAO also found that while the guidelines identified the Minister in an approval role, there are no records that evidence that the Department of Health or Sport Australia advised the Minister on the legal basis on which the Minister could undertake an approval role. [2] The report recommended that Sport Australia improve its grants management for high demand programs and improve conflict of interest guidelines. [2]

Consequences of ANAO report

The ANAO report led to extensive media coverage and its outcomes were compared to the 1993–1994 sports rorts affair within the Keating government

McKenzie's response to the report was that it was "a very popular program that funded 684 projects right across the country to help get people up and moving" and "all projects selected for funding were eligible to receive it." McKenzie also highlighted that the final list of approvals was not a Sports Rort, as the outcome was "reverse pork-barrelling" because Labor seats benefited from her ministerial intervention. [14] Australian Labor Party spokesman for sport Don Farrell called for Senator McKenzie to resign and made the following comments about grants awarded in April 2019, just weeks out from the May 18 election "more than 400 grassroots sports club had their applications, which were highly regarded by Sport Australia, thrown out by this government so they could funnel money into marginal seats instead." [15]

McKenzie resigned as deputy leader of the Nationals and from her ministerial portfolio on 2 February 2020, after a report by the Secretary of the Department of Prime Minister and Cabinet found that she had breached ministerial standards by not declaring her membership of one of the clubs which had received funding under the program. [16] The planned deputy leadership contest culminated into a larger National leadership spill, resulting in the resignation of Nationals MP Matt Canavan from the cabinet and the resignation of Llew O'Brien from the Nationals party room.

Gaetjens report

Prime Minister Morrison commissioned an investigation by the Secretary of the Department of the Prime Minister and Cabinet. The resulting report, handed down in early February 2020, indicated that there was "no basis for the suggestion that political considerations were the primary determining factor" and did not unduly influence the decision-making process; though what influence this report (known as the Gaetjens report) found political considerations actually had is unknown. Morrison said the Gaetjens report was a cabinet document and therefore would not be made public. [17]

Labor, Greens and the crossbenches in the Senate demanded the release of the report. On 12 February 2020, the Senate voted down a motion which would have stripped Senate government leader Mathias Cormann of his ability to represent the Prime Minister in the chamber until 6 March, unless the government tabled the report. [18] [19]

John Hewson, who as the failed Liberal Opposition leader led the attack on then Sports Minister Ros Kelly in the 1993–94 sports rorts affair which led to Kelly's resignation, condemned Prime Minister Morrison's disregard for the auditor general's report into the sports grant program. He described this current sports saga as even worse than the 1993–94 sports rorts affair and joined in calling for Senator McKenzie's resignation. [20] Hewson had months earlier revealed that he was no longer a member of the Liberal Party meaning he did not face any repercussions for this criticism of the Prime Minister. [21]

Senate Select Committee on Administration of Sports Grants

In February 2020, the Senate established Select Committee to inquire into and report on the administration and award of funding under the Community Sport Infrastructure Grants. [22] The Committee accepted submissions and held several hearings. An interim report was released in December 2020. Final report was tabled in Parliament in March 2021. [22] The final report examined and made recommendations in relation to Sport Australia's processes and authority in relation to the grants, the role of the Prime Minister's Office in the grants process and development of a coordinated national policy framework for community sport infrastructure. [23]

See also

Related Research Articles

<span class="mw-page-title-main">Centenary House</span>

Centenary House was a building in Canberra, Australia. It consisted of five levels and was located at 19 National Circuit, Barton.

The Australian Government Department of Agriculture and Water Resources was a government department that existed between 2015 and 2019, which was responsible for developing and implementing policies and programs that contribute to strengthening Australia's primary industries, delivering better returns for primary producers at the farm gate, protecting Australia from animal and plant pests and diseases, and improving the health of Australia's rivers and freshwater ecosystems.

Roslyn Joan Kelly AO is a former member of the Australian House of Representatives, having represented the Division of Canberra from 18 October 1980 to 30 January 1995. She was a minister in the governments of Bob Hawke and Paul Keating.

The Natural Heritage Trust (NHT), or National Heritage Trust Account was set up in 1997 by means of the Natural Heritage Trust of Australia Act 1997, with the main objective of conserving the "natural capital infrastructure" of Australia. Money from the NHT Account must be spent on the environment, sustainable agriculture and natural resources management (NRM). Since its establishment, a considerable number of community groups and organisations have received funding for environmental and natural resource management projects, delivered via a number of different initiatives since 1997. As of June 2020, the NHT account is funding a program known as Phase Two of the National Landcare Program. The original National Landcare Program was launched in 1992, but in 2014 merged with the Caring for our Country program.

<i>Environment Protection and Biodiversity Conservation Act 1999</i> Environmental law in Australia

The Environment Protection and Biodiversity Conservation Act 1999(Cth) is an Act of the Parliament of Australia that provides a framework for protection of the Australian environment, including its biodiversity and its natural and culturally significant places. Enacted on 17 July 2000, it established a range of processes to help protect and promote the recovery of threatened species and ecological communities, and preserve significant places from decline. The Act is as of June 2020 administered by the Department of Agriculture, Water and the Environment. Lists of threatened species are drawn up under the Act, and these lists, the primary reference to threatened species in Australia, are available online through the Species Profile and Threats Database (SPRAT).

<span class="mw-page-title-main">Mathias Cormann</span> Secretary-General of the OECD

Mathias Hubert Paul Cormann is a Belgian-born Australian politician and diplomat who currently serves as Secretary-General of the Organisation for Economic Co-operation and Development (OECD), having assumed the office on 1 June 2021.

<span class="mw-page-title-main">Australian National Audit Office</span> Supreme audit institution of Australia

The Australian National Audit Office (ANAO) is the supreme audit institution of Australia, functioning as the national auditor for the Parliament of Australia and Government of Australia. It reports directly to the Australian Parliament via the Speaker of the House of Representatives and the President of the Senate. Administratively, the ANAO is located in the Prime Minister and Cabinet portfolio.

The "sports rorts" affair was the name by which Australian media and political commentators came to refer to events during the second Keating ministry in late 1993 and early 1994, where the then Sports Minister, Ros Kelly, was unable to appropriately explain the distribution of federal sporting grants to marginal electorates held by the governing Australian Labor Party. On 28 February 1994, Kelly resigned from her position under consistent pressure from the Australian Democrats and the Liberal opposition about the matter. Ultimately, the controversy also led to her resignation from Parliament and, at the resulting by-election on 25 March 1995, the government lost the normally safe Labor seat of Canberra.

<span class="mw-page-title-main">Michael McCormack (Australian politician)</span> Australian politician (born 1964)

Michael Francis McCormack is an Australian politician who served as the 18th deputy prime minister of Australia from 2018 to 2021 under Prime Ministers Malcolm Turnbull and later Scott Morrison. He was also Minister for Infrastructure, Transport and Regional Development, having previously served as Minister for Defence Personnel and Minister for Veterans' Affairs from 2017 to 2018. McCormack has been a member of the House of Representatives since 2010, representing the Division of Riverina in New South Wales. He was a newspaper editor before entering politics.

<span class="mw-page-title-main">Bridget McKenzie</span> Australian politician (born 1969)

Bridget McKenzie is an Australian politician. She is a member of the National Party and has been a Senator for Victoria since 2011. She has held ministerial office in the Turnbull and Morrison governments, also serving as the party's Senate leader since 2019.

<span class="mw-page-title-main">David Littleproud</span> Australian politician

David Kelly Littleproud is an Australian politician who has been the leader of the National Party since May 2022. He has represented the Queensland seat of Maranoa since the 2016 federal election and was a cabinet minister in the Turnbull and Morrison governments.

<span class="mw-page-title-main">46th Parliament of Australia</span> 2019–2022 meeting of the Australian Parliament

The 46th Parliament of Australia was a meeting of the legislative branch of the Australian federal government, composed of the Australian Senate and the Australian House of Representatives. The 2019 federal election gave the Coalition of the Liberal and National Parties control of the House, originally with a three-seat majority, allowing their leader Scott Morrison to stay in office as the 30th Prime Minister of Australia. The 46th Parliament was opened in Canberra on 2 July 2019 and was dissolved by the Governor General David Hurley on 11 April 2022.

<span class="mw-page-title-main">Second Morrison ministry</span> Australian government ministry led by Scott Morrison

The second Morrison ministry was the 72nd ministry of the Australian Government. It was led by Prime Minister Scott Morrison. The second Morrison ministry succeeded the first Morrison ministry following the 2019 Australian federal election. The ministry was announced on 26 May 2019 and was sworn in on 29 May. Following the Coalition's defeat at the 2022 election, the ministry was succeeded by the Albanese ministry on 23 May 2022.

<span class="mw-page-title-main">Department of Agriculture (Australia, 2019–20)</span> Short-lived agency of the Australian government

The Australian Department of Agriculture was an Australian Government department in existence between May 2019 and February 2020, which was responsible for developing and implementing policies and programmes that contribute to strengthening Australia's primary industries, delivering better returns for primary producers at the farm gate, protecting Australia from animal and plant pests and diseases, and improving the health of Australia's rivers and freshwater ecosystems.

<span class="mw-page-title-main">2020 National Party of Australia leadership spill</span>

A leadership spill for the federal leadership of the National Party of Australia was held on 4 February 2020, and was called by the Member for Wide Bay, Llew O'Brien.

The Car park rorts affair was the result of a series of grants that the Australian federal government made to build near train stations. It was later revealed that many of the projects were located almost exclusively in Liberal held seats, or in marginal seats. It followed the revelations in the sports rorts affair.

<span class="mw-page-title-main">Scott Morrison ministerial positions controversy</span> Scott Morrison ministerial positions controversy

The Scott Morrison ministerial positions controversy, also known as the Morrison ministries scandal, was a major political scandal in Australia involving the government of Prime Minister Scott Morrison. The scandal developed following the 2022 Australian federal election, when it was revealed that Scott Morrison, while the Prime Minister of Australia, had himself secretly appointed to five ministerial positions without the knowledge of the public or his own government. An inquiry, ordered by Prime Minister Anthony Albanese, and led by Virginia Bell, recommended legislative changes to prevent such a consolidation of centralised decision making occurring in the future.

<span class="mw-page-title-main">Doncaster Park and Ride bus station</span> Bus station in Melbourne, Australia

Doncaster Park and Ride is a park and ride bus station and future busway station located in Melbourne, Australia. It serves the suburb of Doncaster and situates next to the Eastern Freeway, and opened in January 2003. On some official sources and signage of the station, the "and" in its name is replaced by a "+" symbol, making it Doncaster Park + Ride.

References

  1. ↑ Tsikas, Mick (2 February 2020). "Remembrance of rorts past: why the McKenzie scandal might not count for a hill of beans". The Conversation. Retrieved 28 February 2020.
  2. 1 2 3 4 5 6 7 8 "Award of Funding under the Community Sport Infrastructure Program". Australian National Audit Office. 15 January 2020. Retrieved 18 January 2020.
  3. ↑ Speers, David (18 January 2020). "Bridget McKenzie's sport grant cash splash is a particularly brazen example of pork-barrelling". ABC News. Retrieved 18 January 2020.
  4. ↑ Martin, Sarah (15 January 2020). "Coalition gave out $100m in pre-election grants favouring targeted seats, audit office says". The Guardian. Retrieved 18 January 2020.
  5. ↑ Masters, Roy (17 January 2020). "'It's not me': Executive in government cash splash report stays anonymous". Sydney Morning Herald. Retrieved 18 January 2020.
  6. ↑ Packham, Ben (16 January 2020). "Bridget McKenzie attacks 'ridiculous' Labor claims on $100m grants". The Australian. Retrieved 18 January 2020.
  7. ↑ Waterford, Jack (17 January 2020). "How rorting sports grants became a bipartisan game". Canberra Times. Retrieved 18 January 2020.
  8. ↑ Knaus, Christopher (17 January 2020). "Explainer: Bridget McKenzie is digging in over calls to resign but does her defence stack up?". The Guardian. Retrieved 18 January 2020.
  9. ↑ Smee, Ben (24 February 2019). "Call for investigation after Georgina Downer presents cheque to bowling club". The Guardian. Retrieved 18 January 2020.
  10. ↑ Lawson, Kirstenn (16 January 2020). "Bridget McKenzie has nowhere to hide in sports grants scandal". Canberra Times. Retrieved 18 January 2020.
  11. ↑ Probyn, Andrew (28 January 2020). "Sport Australia complained to Minister about political interference in grants scheme". ABC News. Retrieved 4 February 2020.
  12. ↑ Snape, Jack (15 January 2020). "Bridget McKenzie defends actions after audit finds 'biased' use of sports grants". ABC News. Retrieved 4 February 2020.
  13. ↑ Snape, Jack (1 February 2020). "Six secrets of the Government's 'dodgy' sport grants hidden in the leaked spreadsheet". ABC News. Retrieved 4 February 2020.
  14. ↑ Karp, Paul (16 January 2020). "Labor calls on Bridget McKenzie to resign over sport grants for marginal seats". The Guardian. Retrieved 18 January 2020.
  15. ↑ Molloy, Shannon (16 January 2020). "Government under fire for election-eve $100 million splashed in marginal seats it needed to win". News.com.au. Retrieved 18 January 2020.
  16. ↑ Bridget McKenzie quits frontbench over report she breached ministerial standards ABC News, 2 February 2020. Retrieved 8 February 2020.
  17. ↑ Speers, David (9 February 2020). "A government report has been locked away — but it wasn't the only thing kept from voters this week". ABC News. Retrieved 13 February 2020.
  18. ↑ "Cormann survives Senate crossbench's gag motion". Sky News. 12 February 2020. Retrieved 13 February 2020.
  19. ↑ Coch, Lukas (12 February 2020). "Pauline Hanson stymies bid to hobble Mathias Cormann". The Conversation. Retrieved 13 February 2020.
  20. ↑ Hall, Eleanor (3 February 2020). "Hewson condemns PM's handling of sports grant scandal". ABC News.
  21. ↑ Archived at Ghostarchive and the Wayback Machine : Adam Bandt and former Liberal leader John Hewson talking Climate Emergency on Sky AM Agenda. YouTube .
  22. 1 2 "Select Committee on Administration of Sports Grants". Parliament of Australia. Retrieved 26 April 2022.
  23. ↑ "Select Committee on Administration of Sports Grants: List of Recommendations". Parliament of Australia. Retrieved 26 April 2022.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.