Aussie Corruption Watchdog to Evaluate Grant Spending Amid Pork Barrelling Allegations

South Australia's anti-corruption watchdog, ICAC, will commence an evaluation into state Labor's controversial grants administration program. (photo courtesy of ICAC)

An anti-corruption commission will carry out a surface-level examination of how South Australian grant funds are being distributed and whether they potentially favoured Labor Party-held seats.

The state Labor government was notified by the state’s Independent Commission Against Corruption (ICAC) that it will start its “evaluation” of the program.

It follows a 2022 report revealing that $84 million was distributed to Labor-held seats just weeks after they won office, according to the Australian Broadcasting Corporation (ABC).

In a statement (pdf) published on Jan. 25, ICAC’s Commissioner Ann Vanstone K.C., said the evaluation would examine the practices and policies meant to guard against corruption.

“This function is widely performed in public administration, with programs varying significantly in their purpose, monetary value, and beneficiaries,” Vanstone said.

“Grants administration is a function that is vulnerable to corruption.

“It involves the distribution of significant sums of public money to support business and innovation, provide emergency relief, aid projects and enrich communities.

“Without robust processes and supervision, grants programs can be exploited by the public officers administering them and by grants recipients.”

In response, South Australian Premier Peter Malinauskas said he was not worried by the watchdog’s announcement saying that ICAC was “simply doing an evaluation” of policies and procedures across a wide area.

“We think that’s a good thing … they’ve done this a number of times over the years including for Safe Work,” Malinauskas said.

A government spokesperson said that “the state government welcomes the evaluation,” reported The Advertiser.

“This is the ninth such evaluation undertaken by ICAC,” he said.

“We will closely consider any recommendations which seek to improve the practices, policies and procedures of government agencies.”

SA’s Contentious Sports Program

In 2022, an ABC analysis found 69 of the 72 sporting grants were made to seats held or gained by Labor at the SA March 19 state election.

Additionally, more than half of the money was allocated to marginal electorates Labor was attempting to hold or win.

For instance, programs in Whyalla, Kangaroo Island, and on the Fleurieu Peninsula were three regional areas to receive funding.

Then and current state Minister of Transport Tom Koutsantonis said the program was an example of Labor “fulfilling its election mandate.”

“There is a question here between electoral mandate and what some other people are calling pork barrelling,” he said in June 2022.

“Now there’s always a difficult balance here but I think we got the balance right.”

What is Pork Barrelling?

Pork barrelling is where public resources are distributed to targeted electors for partisan purposes.

Under Section 326 of the Commonwealth Electoral Act 1918 (Cth), a person shall not receive or obtain, nor offer or agree to ask, any property or benefit with the intention of influencing or affecting a vote or candidature or a political party at a federal election. The penalty is 2 years or 50 penalty units.

But, this does not apply to “a declaration of public policy or a promise of public action.”

“This means a declaration of public policy or a promise of public action is exempted—bribery is prohibited, but announcing a policy that some people might perceive to be a bribe is not,” according to Australia’s Institute of Internal Auditors (IIA).

“Ministers can expose themselves to allegations of wrongdoing when they exercise discretion and ignore departmental advice on the merits of program applications, and the departure is unjustified or the justification is implausible.”

ICAC a Toothless Tiger?

The passing of controversial changes to ICAC’s powers in the state’s parliament in 2022 has meant that the watchdog can no longer initiate its own investigations on matters of public interest.

Vanstone had criticised the move saying that the watered down laws “decimated” her ability to investigate corruption.

Moreover, the SA premier Peter Malinauskas has said that an evaluation by ICAC was unlikely to lead to deeper investigations of election promises by Labor.

“When you make an election commitment you go to the people of South Australia and you seek their endorsement for the delivery of it and having received that mandate at last year’s state election, we’re making sure we’re delivering on those election commitments,” he said.

In her statement, Vanstone said she would “in the coming days” write to a number of public authorities seeking details of the grants they administer and the processes they employ.

“Those responses will inform our subsequent activities, which will include reviewing specific grants programs, conducting interviews and inviting submissions.

“The [ICAC] plays an important role in preventing and minimising corruption in public administration.”

Deputy Opposition Leader John Gardner said while he did not want to comment on the evaluation, he said that ICAC “very rarely” issues public statements such as the one published by Vanstone.

“I think goes to the gravity and seriousness of the work that ICAC does,” Gardner said.

The report is expected to be delivered to parliament by the end of the year.

The Office of South Australia’s Premier, Peter Malinauskas, has been contacted for comment.