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The government voted down my inquiry into local government corruption despite concerning evidence being presented to them.

Recent royal commissions into aged care, institutional abuse and banking practices only came about after much opposition. Look how much evidence surfaced when people were able to come forward to tell their stories. This inquiry is urgently needed.

Original Inquiry: https://www.malcolmrobertsqld.com.au/government-dodges-corruption-investigation/

Transcript

As a servant to the people of Queensland and Australia, I wish to further discuss the corruption that continues in Queensland local government. This corruption is ripping off hundreds of millions of dollars of Commonwealth and state taxpayers’ money. These moneys are being redirected, not spent on their intended purposes, not spent at all or corruptly provided to persons in exchange for overvalued materials and services. Emergency Management Australia, EMA, administers the National Disaster Relief and Recovery Arrangements, the NDRRA, and the Disaster Recovery Funding Arrangements, the DRFA, funding on behalf of the Australian government. Seventy-five per cent of the funds are from the Australian government, and the remainder is reimbursed by the Queensland state government. The Queensland Reconstruction Authority, QRA, and Emergency Management Queensland, EMQ, coordinate disaster funding in Queensland. Queensland councils received $5.4 billion in NDRRA funds from 2011 to 2019. This may be a billion-dollar scandal.

Recent royal commissions into aged care, institutional abuse and banking practices only came about after much opposition. Look how much evidence surfaced when people were able to come forward to tell their stories. This inquiry is urgently needed. The councils and the Local Government Association of Queensland facilitate a system where contractors make huge profits from road-building by fraudulently claiming payments and stripping 40 to 60 per cent out of NDRRA funding as private profits. These practices are widespread across Queensland. At the heart of this local government corruption has been the Local Government Association of Queensland, the LGAQ, a private company that has a special relationship with the Queensland government and is not obliged to go to tender when contracting with councils.

This lack of transparency breeds corruption. What makes the LGAQ unique is the special statutory provisions that make the LGAQ virtually unaccountable for their actions. Under rule 234 of the Local Government Regulation 2012 a council is exempt from calling contracts to tender or calling quotes if the contract is entered into under an LGA arrangement. Can you imagine that? This includes a contract made with the LGAQ. Every contract the LGAQ enters involves a substantial fee being paid to the LGAQ. I will say that again. Every contract the LGAQ enters involves a substantial fee being paid to the LGAQ. It is classic cartel arrangement prohibited in any other state except Queensland, where it is legalised by rule 234.

Some of this information has been disclosed in the Queensland state parliament and directly to the CCC, which inexplicably declined to investigate. Many complaints to the CCC about a council are sent back to the council to investigate itself; actual CCC investigation is rare. A research paper prepared by Professor Timothy Prenzler into the complaints sent to the CCC found that less than two per cent of complaints were investigated and the other 98 per cent largely disappeared. Why?

After I alerted the Senate that I wished to put a motion to support a Senate select committee inquiry into this corruption, the LGAQ sent representatives to Canberra to try to stop the inquiry. Some mayors contacted the office of the local government minister, Mr Coulton, objecting to the inquiry. What are they afraid of? What do these mayors all have to hide? What do they think an inquiry will reveal? Is this an admission of guilt? A council with nothing to hide would welcome an opportunity to show how well it uses public money. Yet, when the motion was put to the vote, the government, Labor and the Greens voted against this anticorruption motion.

This was quite stunning. The government wishes to introduce an integrity bill, yet voted against an anti-integrity motion. The Greens believe the lies that complaints brought to the CCC had been investigated and found to be without substance. This is false. Key witnesses were never contacted, let alone questioned. Key locations were never inspected or visited. How could the Greens say this constituted an investigation? Crossbench senators Jacqui Lambie and Rex Patrick know I’m right and supported my motion. I thank these senators for their integrity. The mechanics of the corrupt practices are known and have been brought to the attention of the authorities. I call on the Senate to do the right thing. I will continue exposing this corruption and continue to seek a Senate select committee to protect taxpayers’ money and to restore integrity.

Through the Local Government Association of Queensland (LGAQ) Ltd the deep corruption that had been culturally entrenched in Ipswich and Logan Councils, is ingeniously and systemically infecting many other Queensland councils.

Senator Malcolm Roberts lodged a Senate motion this week calling for a Select Committee on Corruption in Queensland Local Government to be established to address the gross misuse of Commonwealth and State Disaster Funds, under the procurement practices of LGAQ Ltd and Queensland councils.

Senator Roberts said, “Evidence shows that around 50% of the funded disaster money is siphoned into areas that currently avoid detection and is not used for the benefit of the community.”

“Listening to many contractors and staff state-wide has uncovered a depth of dishonesty with public money that law-abiding citizens will find it hard to believe, but it is true.”

The National Disaster Relief and Recovery Arrangements (NDRRA) is the agency through which councils receive disaster recovery funding. From 2011 – 2019 all Queensland councils received a blockbuster $5.339 billion, 75% from the federal government and 25% from the state.

The LGAQ’s unfettered existence benefits from two statutory provisions. Firstly rule 234 of the Local Government Regulations 2012 exempts a Council from calling for quotes or contractors to tender if the contract is entered using the LGAQ as an intermediary. 

This practice, considered unlawful collusion in all states except Queensland, allows LGAQ’s procurement entity Local Buy, to award disaster recovery projects to “anointed contractors” that can be encouraged to inflate prices, use substandard materials and deliver inferior workmanship to maximise profit.

The other problem is s591 of the Industrial Relations Act 1999, that exempts LGAQ Ltd from appointing an independent auditor to inspect financial records.

Senator Roberts stated, “Access to large sums of disaster money, rule 234 and exemption from financial auditing, allows immunity from scrutiny and transparency creating a hot bed of systemic corruption.

A 2019 audit of Queensland Councils by the QLD Audit Office identified $793 million worth of assets – including roads – missing from public registers of 44 councils during 2017-2019.  The report stated that overspending, incomplete asset registers and systemic poor internal controls were widespread across Queensland Councils making fraud easy to do.

Queensland’s state government and the Crime and Corruption Commission are aware of these alleged corrupt practices and have inexplicably declined to investigate.

Senator Roberts added, “A Senate Committee will ensure an independent investigation, void of political interference, into these corrupt practices. “Every Queensland council should welcome the scrutiny to give rate payers reassurance their council’s governance and fiscal management are both moral and legal.”