$15.5m spend on US advice

Conflict of interest fear

TWO retired US admirals and three other senior American navy staff are being paid a multimillion-dollar package to secretly help steer Australia’s future naval needs.

Their involvement in shaping our defences, including the procurement of nuclear-powered submarines under the AUKUS-pact, and Hunterclass frigates, has sparked claims of conflicts of interest and concern with access to national security.

In all, the ADF has had six former US admirals, three US Navy civilian chiefs and three ship-building executives on its books since 2015, at a combined cost of $15.5m.

Former US Navy secretary Donald Winter was, as at September 2021, purportedly paid $9000 a day plus expenses by Australia to advise then-prime minister Scott Morrison in AUKUS talks.

Some of the Americans also had consulting roles with US shipbuilders and the US Navy at the same time they were advising the ADF.

One former officer had to resign this year from working with the Australian Government on the AUKUS submarines because he was also board chairman for the firm building the same submarines.

Two of the key figures on contract were retired US vice-admirals William Hilarides and Thomas Eccles. Mr Hilarides, a former commander of a nuclear-powered attack sub, sits on Australia’s Naval Shipbuilding Expert Advisory Panel and is paid via a contract between the Australian Government and US consulting firm Burdeshaw Associates. He declined to comment and referred queries to Defence.

Four of the six on the advisory panel are American, including former US Navy shipbuilding deputy assistant secretary Gloria L. Valdez.

Another of the US hires, former Admiral Kirkland Donald, told The New York Post the RAN and USN shared national security interests and confirmed all approvals and clearances were granted by both governments.

The contracts had been kept quiet by both governments, but Washington released details under pressure from The Washington Post.

Australia’s military, and specifically its RAN fleet, is small but its importance is growing as China continues to assert its influence and presence in the Indo-Pacific.

Defence has dismissed concerns over alleged conflicts of interest or security disclosures.

“A range of advisers have been engaged by Defence to provide expert advice through forums such as the Naval Shipbuilding Expert Advisory Panel on the performance of the naval shipbuilding enterprise, acquisition of nuclear powered submarines and other issues,” a spokeswoman said.

“Relevant foreign government approvals are in place to support these engagements.

“Appropriate security, confidentiality and conflict of interest arrangements are also in place.”