Damning report on failure of process for a multi-million-dollar expenditure of taxpayers’ funds
REPORT VINDICATES “PATHETIC ATTEMPT”
An independent audit commissioned by the Inspector General of Water Compliance1 has vindicated concerns raised by Shadow Water Minister, Perin Davey that were slammed as a “pathetic attempt” at distraction by embattled Minister Tanya Plibersek.2
Senator Davey wrote to the Inspector General in March 2023 raising concerns about the management of market sensitive information by the Department of Climate Change, Energy, the Environment and Water and subsequently the Minister. There was no accusation of actual wrongdoing, rather the potential for information to be misused.
In responding to Senator Davey’s correspondence3, the Inspector General noted serious concerns that the Department, who became a significant participant in the multi-billion-dollar water market through the Labor Government’s purchase program, was also responsible for developing policy and setting and reforming water market rules.
“My concerns have been vindicated with the audit finding the Department’s Water Group information barriers are not effective and it is unclear how information barriers were applied or communicated with staff prior to the Government announcing the opening of a tender process,” Senator Davey said.
Senator Davey explained, it is a requirement of the Basin Plan that anyone who holds market sensitive information must not participate in market activities and any agency that has access to market sensitive information must have Chinese wall arrangements in place.
“In this case it has been found that the Department’s information barrier arrangements were not effective in supporting compliance with Basin Plan requirements,” she noted.
“Furthermore, other protocols such as policies and procedures, managing conflicts of interest and training were only found to be partially effective.
“This is an absolutely damning report about failure of process for a multi-million-dollar expenditure of taxpayers’ funds.
“The policy framework did not outline key controls, training held prior to market announcements were poorly attended and conflict of interest declarations were made after market announcements.
“If it weren’t so serious you would send it to the scriptwriters of Utopia for an episode – ironically the star of which owns shares in a company that participates in the water market.
“To make matters even more interesting, the Inspector General noted that staff assisting him are also employed by the Department making an internal audit impossible,” Senator Davey noted.
“I applaud the Inspector General for maintaining his impartiality and independence by seeking external consultants to look into this very serious matter,” she said.
1 Audit - Controls Supporting Compliance with Basin Plan Requirements (igwc.gov.au)2 Heat on Tanya Plibersek as water cop urged to wade in over ABC ‘leak’ | The Australian
