Reef grant admin could cost $86m, audit finds

A SCATHING audit of a $443 million government grant to protect the Great Barrier Reef has revealed that administrative overheads could chew through $86 million of public funding.

A new report by the Australian National Audit Office revealed the Queensland Government was snubbed for the Federal Government grant, which was handed to a private foundation run by oil and airline executives without going to tender.

The federal Environment Department was given just 11 days to finalise the “bespoke grant’’ to the Great Barrier Reef Foundation last year.

Public servants even helped the foundation write its funding proposal.

The ANAO audit, tabled in Federal Parliament yesterday, found the department “applied insufficient scrutiny to the likely administration costs”, which could total $86 million.

It also warned that “conflict-of-interest risks were not adequately addressed’’, as public servants worked with foundation staff to draw up grant guidelines.

The ANAO said the Environment Department had identified the Queensland Government as a potential re- cipient for nearly $500 million in taxpayer funding to protect the reef.

But the department decided the foundation would be more likely to raise extra cash from private donors.

The department also ruled out giving the money to the Australian National Parks Fund, the World Wildlife Fund, Greening Australia or the Australian Marine Conservation Society.