The Australian National Audit Office (ANAO) has released a scathing review of a Morrison-government-era health and hospital grant funding program.
The funding processes for the $2 billion Community Health and Hospitals program, which was set up prior to the 2019 election, have been deemed "ineffective and fell short of ethical requirements".
"The Department of Health and Aged Care's (Health's) effective administration of the funding arrangements under the Community Health and Hospitals Program (CHHP) was undermined by deliberate breaches of the Commonwealth Grants Rules and Guidelines and failure to advise government where there was no legislative authority for grant expenditure." the report reads.
"Projects funded under grant agreements with Primary Health Networks and non-government organisations were designed, assessed, established and managed in a manner that was largely inconsistent with the Commonwealth Grants Rules and Guidelines."
The review found 171 projects were attached to the program, but only two were found to be "highly suitable" under the criteria and almost half were based in marginal electorates.
ANAO has made four recommendations in the report, including improving systems for reporting of non-compliance with finance law, ensuring grants are being awarded according to guidelines, and establishing a quality assurance process.
The Department of Health and Aged Care has agreed to all recommendations.
Health Minister Mark Butler says the review highlights a consistent lack of transparency around grants schemes administered by the Morrison government.
"This program exemplifies the Morrison government's time in office — one plagued with waste and rorts. A government that was all announcement and no delivery.
"The Morrison government ran roughshod over cabinet processes, government departments and, ultimately, the Australian people. This report shows that health funding was no exception," Mr Butler said.
Mr Butler has ordered a review of the remaining projects to ensure the money is spent properly.
"This taxpayer money was so poorly allocated that years later, at a time when Medicare and the health system are under such strain, just half of the $2 billion has actually been spent."
"I've directed my department to run the ruler over the remaining projects that have stalled to ensure that Australians get value for money."
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