A parliamentary inquiry has described a Minns government scheme that allowed Labor candidates in the 2023 election to allocate $400,000 to projects in their potential seats as an 'election slush fund'. The inquiry into the Local Small Commitments Allocation (LSCA) program found that John Graham, the minister responsible, misled parliament on multiple occasions.
Key Findings of the Inquiry
The non-government-controlled committee alleged that former MP Cherie Burton, now a senior adviser to the premier, and staffer Paul Mills made false statements under oath and should be considered for prosecution. Under the LSCA, Labor candidates in 93 lower house electorates each nominated projects worth $400,000. After the Minns government was elected in March 2023, projects were funded regardless of whether candidates won their seats. By mid-2023, 642 projects worth over $37 million had been approved.
Program Defended as Anti-Pork Barrelling
Labor witnesses told the inquiry the program was designed to combat 'pork barrelling' because projects were funded regardless of election results. However, inquiry chair Abigail Boyd criticized the government's defense, stating that the most accurate description is a 'publicly-funded Labor party election slush fund'. The only criterion was that a Labor candidate thought a project was a good idea, including $100,000 allocated to sporting clubs that supported their campaigns.
Audit Office Findings
The Audit Office of NSW found the grants scheme was 'effectively administered' but noted only 17 of 93 Labor candidates had conflict-of-interest assessments, with others relying on verbal communication from the party. It recommended better guidance and conflict-of-interest processes.
Allegations of Misconduct
The parliamentary inquiry alleged that the premier's office 'unlawfully redirected' $6.4 million from originally nominated projects. It also claimed that changes were made to the electorate of Sydney after consultation with independent MP Alex Greenwich, who denied wrongdoing. The report accused Burton of being a 'hostile and unreliable witness' and coaching Mills to give non-answers.
Ministerial Breaches
The report alleges that Graham breached ministerial obligations and misled parliament, including claims that all commitments were made before the election and that agency advice prevented conflict-of-interest assessments. A witness contradicted this, stating that advice allowed assessments but Graham directed otherwise.
The inquiry recommended amending the state's Electoral Act to prevent unethical campaign promises and pork barrelling. Graham rejected the report as a 'desperate political hatchet job', while a government spokesperson referred to the audit office's assessment and dismissed the allegations as conspiracy theories.
