THE Joint Committee of Public Accounts and Audit (JCPAA) authorised an Order to be issued on June 27 to Mr John Magerison requiring him to answer questions put to him on April 26, 2023, and summonsing him to appear before the committee in a public hearing this Friday,  July 28..

However, the part of this Friday’s public hearing into procurement at Services Australia and the NDIA which was to hear from John Margerison can no longer proceed.

Mr Margerison’s lawyer has informed the committee that Mr Margerison is now resident overseas, having severed all ties with the country of Australia many weeks ago. Mr Margerison’s lawyer has not disclosed Mr Margerison’s whereabouts.

Further, as Mr Margerison claims via his lawyer to now be located and resident overseas, he now considers himself outside the jurisdiction of the Parliament.

Committee Chair, Julian Hill said the JCPAA would consider the letter from Mr Margerison’s lawyer at its next private meeting.

Mr Hill said, “That Mr Margerison’s lawyer now claims he has left and severed all ties with Australia is a somewhat surprising turn of events indeed. Mr Margerison’s whereabouts remains a matter of great mystery.

“Notwithstanding Mr Margerison’s refusal to fully address the questions put to him in April and appear this Friday, the JCPAA will continue to conduct this inquiry in a proper fashion. The committee will make findings based on the evidence before it. It remains within the JCPAA’s power to recommend referrals to other investigative bodies with additional resources and powers.”

The remainder of the hearing – which relates to the JCPAA’s inquiry into annual performance statements – is unaffected and will proceed.

Further information is available on the inquiry website.

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THE committee will be holding a public hearing tomorrow for an inquiry into the National Redress Scheme.

Commencing from 11am AEST, the committee will hear evidence from organisations providing redress support services. The program is available on the Committee's website.

The inquiry is looking into a range of areas, including:

• The experience of First Nations applicants and applicants with disability in their dealings with the scheme.
• Accessibility, performance and effectiveness of support services and legal advice for survivors and their advocates.

Committee Chair Senator Catryna Bilyk said, "Submissions to the inquiry highlighted issues such as communication challenges, cultural safety, distance from services and a high demand for services.

"Navigating the process can be difficult. The committee is interested to hear about how accessibility could be improved and what strategies could help improve awareness of the National Redress Scheme."

A further public hearing is planned on Tuesday July 11, 2023. Details are expected to be announced soon.

Full details of what the inquiry is examining can be found in the terms of reference on the Committee’s website. An easy English guide is also available.

Public hearing details

Friday 7 July 2023
11am to around 3:30pm (Canberra time)
Committee Room 2R1, Parliament House, Canberra
Listen online at www.aph.gov.au/News_and_Events/Watch_Parliament

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THE Joint Committee of Public Accounts and Audit (JCPAA) has tabled its report on the administration of Commonwealth grants. Four Auditor-General reports and three additional grant programs were considered in this inquiry which informed eight recommendations which, if adopted, will significantly strengthen the processes and transparency around Commonwealth grant awards.

Chair of the JCPAA, Julian Hill MP said, “Clear and concerning evidence of serial non-compliance with the Commonwealth Grants Rules and Guidelines (CGRGs) and program guidelines was presented. The requirements are not overly complex or onerous yet both the letter and the spirit of rules were routinely disregarded by Ministers and officials.

”Instead of transparently allocating public funds, the previous government pursued industrial scale rorting for blatantly partisan purposes. Rorting grants programs in this way not only wastes money, but also degraded public trust. The committee was especially appalled to receive evidence that politicisation of regional grants programs corroded public trust to the point some councils stopped applying due to the belief they would never get a fair go.

“Principles of fairness, a competitive process by default, transparency, and value for money were simply disregarded and records of critical decisions were not made or kept," Mr Hill said.

“It's difficult to know what is more perplexing. That the previous government did what they did with billions of dollars of taxpayer dollars? Or that they still do not acknowledge that what they did was utterly wrong.

“If the first step to recovery is to admit there is a problem, then it is clear from their attitude to this inquiry that the Liberal and National Parties are still in denial," he said.

“It is simply not good enough for those trying to defend the egregious behaviour revealed through the inquiry to say ‘no illegality was identified’ when assessment processes were repeatedly, systematically and systemically perverted. Especially so when funding decisions repeatedly resulted in ridiculously partisan outcomes. Just because you can do something, doesn’t mean you should.

“Dismissing legitimate criticism of the Liberals’ industrial scale rorting of grant programs as 'politically motivated' is peak irony."

Mr Hill said, “Ministers can and should apply their own critical judgement to and are perfectly entitled to accept or reject departmental advice. What the committee does not accept however is the lack of transparency under the previous government. Ministers are not ‘gods’ and are subject to the law and the rules and must record properly and fully documented reasons.”

The committee is recommending changes to the CGRGs to ensure that competitive processes are used by default and election commitments are clearly defined, that the roles of stakeholders are clarified, that ministerial funding approvals against agency recommendations are clearly recorded and reported promptly to the Minister for Finance, and that any ‘other factors’ by which grants will be assessed are fully transparent.

The committee’s inquiry focused in particular on instances of non-compliance with the CGRGs which are intended to achieve fairness, a competitive process by default, transparency of decision-making, and value for money.

The identified issues included an emerging trend towards non-competitive grant processes, a lack of a definition of election commitments, inadequate records of decisions taken by officials and ministers, and the use of unspecified ‘other factors’ in grants assessments. The committee also considered the future application of the CGRGs to non-corporate Commonwealth entities.

The committee’s report also examined the current use of centralised grants hubs to administer these programs and noted the Auditor-General’s findings that they have only been partly effective in delivering on the intended efficiencies and cost-savings. The committee concurred with the Auditor-General’s recommendations that more effective future planning and performance measures, and improved data quality, were needed for the hubs and has requested that the Department of Finance provide future updates on their implementation.

The committee’s report is available on the Committee website.

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THE Joint Standing Committee on Treaties will hold a public hearing today into the agreement between Australia and the Republic of Serbia on Social Security.

Committee Chair, Josh Wilson MP said, "A social security agreement provides for two countries to share responsibility for paying social security benefits to people who move between countries."

People who move between countries may not make contributions to a social insurance scheme ordinarily sufficient to receive a benefit, or may not satisfy residence requirements for a benefit. Additionally, even when a person may otherwise meet the requirements for a benefit, some countries will only pay benefits to citizens or residents, or reduce the rate of payments to non-residents.

Social security agreements require the payment of a benefit in the other country on a non‑discriminatory basis; specify alternative means by which a person may satisfy residence or contribution requirements to qualify for a benefit; and establish a method for calculating the rate of payment.

Mr Wilson said, "Australia currently has social security agreements with 31 countries. The committee looks forward to examining the provisions of this treaty and hearing from witnesses as to its potential benefits."

The committee will take evidence from officials from the Department of Social Services, the Treasury, and the Department of Foreign Affairs and Trade.

Public hearing details

Date: Thursday 6 July 2023
Time:  3.30pm
Location: Committee Room 1R3 and by videoconference

The hearing can be viewed on the APH website and the program for this hearing is available on the Committee website, along with further information about the inquiry.

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