The Auditor-General’s report on the John Grant affair, while clearing Wayne Swan and Kevin Rudd, is highly critical of Treasury, and one wonders what the ANAO would have found if it had longer to consider the issue.
Rudd and Swan first. This is total exoneration. The most aggressive investigators in the Commonwealth, the process obsessives most likely to find the least skerrick of impropriety or misjudgement, the appearance of them or even the potential for them, has cleared the Prime Minister and, particularly, the Treasurer. It has even explained away why material was being sent to Swan’s home fax — at the instigation of Treasury officials.
Swan, who look in diabolical trouble at the height of the affair in June, must be feeling utterly vindicated. Those of us who claimed he had a case to answer have, indeed, got their answer.
Treasury, however, has not emerged unscathed. Treasury has covered itself in glory in its handling of the economic crisis and Secretary Ken Henry is the Government’s economic go-to man who has not put a foot wrong in the Government’s eyes.
But now he faces a report where words like “imprudent” and “inadvisable” have been used about his Department, and extensive criticism made of its handling of OzCar. And that’s before we get to the self-admitted behaviour of Godwin Grech.
As Treasury says, much of the ANAO’s criticisms of Treasury’s administrative processes — and the ANAO will ALWAYS criticise the processes of any agency it examines, no matter what — can be sheeted home to Grech. Poor records of representations were kept, for example, and that was Grech’s overall responsibility, even if it wasn’t his job to keep files up to date — that’s what you have staff for. There was also poor record-keeping in relation to the decision to “direct source” the services of third party providers, a no-no under Commonwealth Procurement Guidelines.
But the ANAO report also suggests a department eager to please, and be seen to please, its political masters, in assisting car dealers referred by the Treasurer, and in doing so acting unwisely. It is easy to see how Treasury officials, thinking they were doing the right thing and unaware their actions would later be scrutinised in the most charged of political environments, thought it not unwise to casually note to Ford Credit representatives that John Grant was a friend of the Prime Minister’s.
The revelation may not have even been intended to encourage Ford Credit to assist him; it may have been a conversational remark — but in hindsight it was indeed “imprudent”, and yet again demonstrates that public officials are supposed to be boring and process-focussed for a reason.
For its part, Treasury has copped to much of the ANAO’s criticisms. “Treasury accepts the conclusion by the ANAO that there were significant weaknesses in implementation of the OzCar facility.” But it is clear Treasury wants to put the blame mostly on Grech. It noted “that this conclusion needs to be considered in the context of issues which have been raised concerning Mr Grech’s conduct… it does appear that weaknesses outlined in the Audit Report … were substantially contributed to by actions of an individual officer.”
And Treasury in effect rejects the ANAO’s criticism that the area handling OzCar was not adequately resourced, saying additional resources wouldn’t have made any difference.
Given the workload on Grech clearly made him snap, that’s a judgement that many would question.
A nicely balanced article BK. It would have been easy to drive a knife into Turnbull or the Libs over this one, which they deserve in my opinion.
I read the Auditor General’s report this morning, and paid careful attention to Grech’s lengthy commentary in Appendix 1. It seems pretty clear to me that Grech was behaving in a way – sloppy administration, wheeling and dealing, dabbling in politics – which had worked well for him, perhaps been encouraged, under the patronage of the previous government.
There were some warning signs that Treasury, on the face of things should have picked up, the Walter Mitty behaviour, the failure to submit documents for renewal of his Secret clearance, his health issues. We don’t know the full story there, however, and Grech is shaping up to be a very unreliable witness.
I don’t necessarily accept that Grech’s workload was responsible for him “snapping”, but his depression, retrospectively diagnosed, according to his statements, might in part have related to his loss of informal stature after the change of government. Mind you, if I had his health problems, that would be enough to depress me.
As a political pessimist, and one-time ministerial chief-of-staff, I was afraid for the worst in respect of the Treasurer and PM, but they have come through as behaving according to the principles they espouse. Let’s hope that continues. A pattern of competence and probity seems to be emerging here.
Yes, a very finely balanced article BK but I tend to agree with EVAN BEAVER. A discrete kick in the guts for Malcolm Turnbull wouldn’t have gone astray.
EDWARD RUSSELL has a very fine understanding of the mentality of the wretched Godwin Grech. What a devastating scenario for a wee little man whom the Liberal Party had made feel important; possibly for the first time in his life.
With John Howard as PM Godwin could assure himself he was vital to the very running of the country. A change of government and he’s back to square one. And he is bitter.
Shakespeare would have had a field day with this story.
I agree with Evan and Edward. Surely Turnbull and Abetz recognised the Walter Mitty elements to Grech, if not, his willingness to step outside protocols at dire costs for a career public servant. I’d like to ask Turnbull and Abetz why their radars weren’t working or are there a swag of partisan public servants running amok in a service heavily ‘politicised’ by Howard. Questions about Treasury certainly hover – does the buck stop with Henry or Swan? Can’t wait for the next sitting.
seems to me this culture of doing whatever it takes to please the minister or PM has arisen after a decade of liberal rule.