Government under scrutiny over $444 million grant

The federal government decided to give the Great Barrier Reef Foundation nearly half a billion dollars of taxpayer money, without having to go through a tender process.

The grant was handed out in a bid by the government to protect Australia’s Great Barrier Reef, but without the organisation being asked if they wanted it or how they would spend the money.

Labor and Greens senators have teamed up to quiz officials on why the money was allocated to the small foundation rather than the Great Barrier Reef Marine Park Authority or the Australian Institute of Marine Science.

Labour Senator, Anthony Chisholm, demanded accountability from government officials during Senate estimates hearings on Monday, saying: “You’ve forked out $450 million to this group that have 10 staff.”

The Greens Senator, Richard Di Natale, questioned why the money wasn’t given directly to the authority.

Government Minister, Simon Birmingham, backed the allocation, saying the foundation had the expertise to handle large sums, but after a record contribution it would be expected there would be some expansion of its resources to handle it.

Environment Department Secretary, Finn Pratt, denied a characterisation by Labor Senator Kristina Keneally that the grant was the result of an “unsolicited tender” from the foundation.

But the department took questions on notice, unable to say whether there was any open invitation or opportunities for other organisations to put forward plans.

“It does appear the department cannot answer basic questions how this massive allocation of money came to go to one foundation,” Keneally said.

Earlier Pratt said the Great Barrier Reef Foundation was in talks with the department about its plans to spend money over six years.

Great Barrier Reef Foundation Managing Director, Anna Marsden, said the foundation “presents a great opportunity for a new era of cooperation and we recognise there is a lot of interest from delivery partners, current and potential, to understand where they can play a role.”

The grant agreement will include provisions for collecting funds if the foundation experiences financial difficulty.