Eighteen months after I raised concerns with the Commonwealth Inspector-General for Water Compliance about how the Department of Climate Change, Energy, Environment and Water handles sensitive water market information, an independent audit has found those concerns valid.
When I wrote to the Inspector General, the Minister for the Environment and Water, Tanya Plibersek described our concerns as “pathetic”.
Rather than being “pathetic”, the Inspector General agreed, noting the department became a significant participant in the water market through its purchase program and water holdings, while also acting as a policy agency involved in setting and reforming the water market rules.
The audit he then commissioned found “serious failures and concerns regarding the potential risk of wrongdoing”.
It makes it clear Section 12.52 of the Basin Plan requires the department to have information barrier arrangements in place, yet those in place were found to be “not effective in supporting compliance with Basin Plan requirements”.
Information barrier arrangements provide the public and parliament with assurance that market sensitive information is not misused.
Effectively they are designed to prevent insider trading or market manipulation.
The audit was also riddled with extremely concerning findings including misleading statements and failure to require conflict of interest declarations.
It is inexcusable that the audit has found a government embarking on a multibillion-dollar water buyback program, did not have procedure.
No one from the department has been held accountable for the failure to ensure processes were in place to ensure the integrity of the water markets and the government’s spending.
The Australian National Audit Office must take up where the Inspector-General for Water Compliance left off and open an investigation into the appalling handling of the Bridging the Gap tender which we now know saw the Government pay 20-30 per cent above the market rate.
With another water buyback tender closing last week for 70GL it is imperative water market participants and taxpayers have faith the government isn’t engaged in practices that undermine the integrity of the water market.
The minister must assure Australians that she has taken steps to ensure there can be no misuse of market sensitive information or halt further buybacks until such time as that occurs.
ENDS