State government bypasses standard assessment process for $84 million in sports grants

Premier Peter Malinauskas says the local sporting club upgrades had been assessed by Labor when the party was in opposition. (ABC News: Lincoln Rothall)

South Australian public servants responsible for assessing sporting grants had no oversight of more than $80 million in grant funding handed out by the state's new Labor government just weeks after taking office.

An ABC analysis of the 72 sporting grants, announced in the state budget, shows 69 of them were made to seats the Labor Party held or gained at the election, prompting accusations of pork-barrelling.

The Office of Recreation, Sport and Racing (ORSR) yesterday confirmed it has not assessed the $84 million in grants for sports club upgrades allocated in the state budget.

In a statement to ABC News, a spokesperson for the government agency said the projects were considered "election commitments". 

"As this was not allocated through a formal grant program, rather as election commitments, ORSR did not conduct an assessment process," the spokesperson said.

It also confirmed as there was no formal grant program, the scheme was not open for all sporting clubs to apply.

SA's Office of Recreation, Sport and Racing says it has not assessed the $84 million in grants for sports club upgrades allocated in the state budget. (ABC News: Ben Pettitt)

Premier Peter Malinauskas said the local sporting club upgrades had been assessed by Labor when the party was in opposition.

"Now having formed government we ensure that the budget realised that expenditure and naturally the budget goes through a cabinet process," he said.

Opposition Leader David Speirs wants the scheme to be investigated by an independent body.  (ABC News: Rory McClaren)

Opposition Leader David Speirs said it was not an appropriate way for sports grants to be managed.

Funding allocated to marginal seats

More than half of the money from the program has been allocated to marginal electorates Labor was either trying to hold or win at the election on March 19.

Only two non-Labor-held seats have had projects funded. 

Programs in Whyalla, Kangaroo Island and on the Fleurieu Peninsula were the three regional areas to receive cash.

"We've now got Labor back to their old tricks. Very, very disappointing," Liberal Riverland MP Tim Whetstone said. 

Treasurer Stephen Mullighan hands a $3 million cheque to the West Lakes Sports Club. (Supplied)

Labor MPs are standing by the program, including Tony Piccolo who has had two projects funded worth a combined $5.8 million.

"I consulted and engaged with my community and, of course, I went to bat for my community as like a good MP should," he said.

Energy Minister Tom Koutsantonis said the program was Labor "fulfilling its election mandate". 

"Now there's always a difficult balance here but I think we got the balance right."