Audit reveals confusion on $2 billion fund
Helen Coonan
An asset consultant was paid $10,000 for around three weeks’ worth of work on how to appropriately invest the $2 billion contained within the Commonwealth’s $2 billion Communications Fund.
However, the Australian National Audit Office (ANAO) has revealed that despite suggestions by the Department of Communications, Information Technology and the Arts, the fund was ultimately not permitted to be invested in instruments falling outside the Financial Management and Accountability (FMA) Act.
The audit report revealed that the department had suggested to the then minister, Senator Helen Coonan, that the relevant legislation should enable a broad range of instruments to be purchased, rather than being limited to fixed interest and like products, in order to retain flexibility so as to not limit the future investment strategy of fund.
The ANAO noted that the proposed broad range of investments represented a significant departure from the categories of conservative investments authorised by the FMA Act.
It said that the Department of Treasury had raised issues about the broad range of investments being proposed by the department.
The audit report noted that the monies were ultimately invested consistent with the FMA Act and in the last Federal Budget the new Labor Government moved to have the Communications Fund folded into the Rudd Labor Government’s new Building Australia Fund.
AUTHOR
Mike Taylor
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