A two $2 billion health program has been slammed by the audit office. 

A scathing review by the Australian National Audit Office (ANAO) has described the former Morrison government's Community Health and Hospitals Program (CHHP) as “ineffective and fell short of ethical requirements”. 

The program, established in December 2018 before the 2019 election, aimed to fund projects that support patient care and reduce the strain on hospitals. 

However, the ANAO found that grants were awarded to health projects that did not comply with the rules for Commonwealth funds, and almost half of the funded projects (45 per cent) were in marginal seats.

The audit report revealed several alarming findings. 

Out of the 63 projects funded through national partnership agreements, 34 were selected without a supporting expression-of-interest proposal or assessment against eligibility criteria. 

Additionally, six projects, which were misaligned with program objectives, were still funded. 

The Health Department even resorted to monitoring media coverage to keep track of projects selected for funding in the lead-up to the 2019 election.

Independent MP Helen Haines compared the report's revelations to the previous sports funding scandal, stating; “This could be sports rorts for hospitals”.

The audit office also criticised the Health Department for breaching grant rules and guidelines, lacking executive oversight, and failing to advise the government when there was no legislative authority for grant expenditure.

Health Minister Mark Butler condemned the former government's handling of the program, describing it as “one plagued with waste and rorts”. 

He pointed out that only slightly over half of the allocated funding had been spent in the past four years and vowed to review stalled projects to ensure Australians receive value for money.

The ANAO report highlighted specific problematic grants, such as a $4 million grant to the Esther Foundation, which is now in voluntary administration, a $5 million grant to the Lord Somers Camp sporting organisation in Victoria, and a $25 million project to expand the Peel Health Campus in Western Australia, situated in Liberal MP Andrew Hastie's seat.

This scandal has prompted calls for major changes to Commonwealth grants. 

Monique Ryan, a federal MP, labelled the former government's actions as “potentially corrupt” and demanded stronger integrity measures for the grants system. 

The Centre for Public Integrity has echoed these concerns and called for increased parliamentary scrutiny, greater transparency, and independent expert assessment to prevent political intervention in grant allocation.

Reports say that some politicians are considering referring the matter to the National Anti-Corruption Commission.

For many, the ANAO report serves as a stark reminder of the urgent need for comprehensive reforms in the grants system to ensure the responsible and ethical use of taxpayer money.