An audit has uncovered significant issues with a $558,000 publicly funded grant awarded to Australians for Indigenous Constitutional Recognition (AICR) by the Tasmanian Community Fund (TCF). The grant, intended to support the Yes vote in the Voice referendum, was marred by inadequate documentation and procedural flaws, according to the report released this week.
In June of last year, the TCF board approved the grant for AICR, which utilized $120,000 for a national media campaign encompassing television ads, social media, opinion pieces, and press releases. An additional $51,000 was spent on video production and media consulting. The audit reveals that half of the grant was allocated to “information about the referendum,” including workshops and promotional materials for libraries, while $100,000 of the grant remained unspent.
The auditor-general’s report highlights that the TCF board, responsible for distributing public funds for community purposes, had endorsed the Yes campaign in February 2023 without documenting the rationale behind their support. Furthermore, the board failed to seek advice on the appropriateness of a state entity backing a referendum outcome.
The report notes, “The TCF’s position statements supporting the Yes vote could have created a perception that any subsequent funding decisions were not objective.” It also criticizes the board for not documenting its conflict-of-interest policies and for lacking transparency in its decision-making processes.
TCF directors have expressed strong disagreement with the audit findings, disputing claims of insufficient evidence and procedural shortcomings. Director Alex McKenzie acknowledged that while documentation could have been improved, he rejected the notion that the board’s decision-making lacked rigor. He emphasized the board’s long-standing support for grants benefiting Tasmanian Aboriginal communities and asserted that the media campaign was focused on Tasmania.
The grant, which accounted for 7 percent of the TCF’s revenue for 2022-23, was awarded during a period of broad political support for the Yes campaign, prior to the Liberal party’s withdrawal of backing. The board has obtained legal advice, contending that the audit office denied them procedural fairness and that no conflict of interest existed.
In response to the audit, Community Services Minister Roger Jaensch announced that the government will consider legislative changes to improve oversight and governance of the TCF. “The use of public funds for political purposes does not meet community expectations,” Jaensch stated. “The government and the Tasmanian community expect a high degree of diligence, transparency, and accountability in the use of public funds.”
Jaensch has requested “urgent advice” to align the TCF board’s accountability and governance with other statutory boards, with plans to introduce legislative changes by the end of the year.
The decision to award the grant has sparked public interest and scrutiny, with Tasmanian Liberal senator Jonathon Duniam referring the matter to the auditor. Duniam criticized the board’s actions, stating, “The TCF is not a treasure chest for activists and their causes, but a fund to support Tasmanians in need.”
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