MP denies grant claims
LEICHHARDT MP Warren Entsch faces a grilling from the Auditor-General over how a company linked to the wife of his campaign director won a $2.4m federal handout to expand the family pharmacy business in Cairns.
Federal Labor’s regional services spokesman Stephen Jones has referred concerns about an alleged conflict of interest in the handling of the grant for investigation by the Australian National Audit Office.
The Australian Federal Police has confirmed it was looking into a separate complaint of alleged fraud and misconduct over the handout to QRX Group 1 under the $220m Regional Jobs and Investment Package.
Labor MP Jones, in a letter sent to the Commonwealth Auditor-General Grant Hehir, said “it is better for all parties” that the allegations be investigated by specialist and independent bodies.
Mr Jones said concerns had been raised about a conflict of interest associated in the chain of decision making and how the QRX Group project may not meet the objectives of the RJIP program.
“It has been alleged that a conflict arises because (Mr Entsch’s campaign director Trent Twomey) of the chair(man) of the TNQ RJIP Committee which was established to identify investment priorities for the region,” he said.
“Mr Twomey also has a fi- nancial interest in the QRX Group 1, through his wife who is a one-third shareholder of that company,” he said.
“This situation has raised concerns that the Cairns local investment plan was written to facilitate the awarding of this grant to QRX Group 1.
“Separate allegations have been made that the proposed project is not capable of creating the jobs which are central to the design of the scheme.”
Both Mr Entsch and Mr Twomey deny any wrongdoing.
The Australian Federal Police, in a statement, said: “The AFP has been made aware of allegations regarding the inappropriate awarding of a government grant.
“The AFP is reviewing material provided by an individual to determine an appropriate course of action.
“While this is under way, no further comment will be made.”
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