Bridget McKenzie’s former chief of staff was warned by a staffer the sport grants scheme could be detrimental to the government, Sky News understands. Political Editor Andrew Clennell spoke at length with the whistleblower, who told Sky News when they raised their concerns they were told “this is how the minister wants to do it and we have to abide by that”. The minister’s office said Ms McKenzie would not comment on “purported conversations between staff in her office” but did not deny the accuracy of the claims. Ms McKenzie has been under pressure to resign from her frontbench post after an Auditor-General report outlined a $100 million sports grant programme was used by the government to hand cash to sports clubs in marginal seats ahead of the 2019 election. Mr Clennell was also made aware of a report commissioned from the Department of Health by the minister – at a $160,000 cost to the taxpayer – into the economic and social effects of shooting. However, when handed down the report said: “it is not possible to say from the data whether hunters and shooters have these attributes because they engage in hunting and shooting, or for another reason”.

A former staffer in Sports Minister Bridget McKenzie’s office has revealed they raised concerns about the sport grants program that has now mired Ms McKenzie in scandal - and got shut down.

This afternoon, Sky News political editor Andrew Clennell revealed he had spoken to the whistleblower, who said concerns were raised internally about the Community Sport Infrastructure Program in late 2018.

The former staffer raised “major” concerns about the administration of the program with Ms McKenzie’s then chief of staff.

They said the Minister was exposed by the methodology being used to hand out the grants and it could turn into a scandal.

According to the whistleblower, Ms McKenzie’s chief of staff replied: “We have to do what the Minister wants.”

“This is how the Minister wants to do it, and we have to abide by that,” the staffer was told.

Ms McKenzie’s office told Clennell the Minister would not comment on “purported conversations between staff in her office”, and all grants approved under the program were within the rules.

She has been under pressure to resign in the wake of an Auditor-General report which concluded the $100 million grants program was used to pour taxpayer money into marginal seats targeted by the Coalition at last year’s election.

The audit found that in the third round of the program, 73 per cent of projects given funding were not recommended by Sport Australia.

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Prime Minister Scott Morrison has asked his head of department Philip Gaetjens to investigate whether any part of Senator McKenzie’s handling of the $100 million Community Sport Infrastructure Program breached ministerial standards.

Mr Gaetjens’ report is expected to be given to Mr Morrison this week, most likely before the Prime Minister’s appearance at the National Press Club on Wednesday.

Over the weekend, The Australian reported two of Mr Morrison’s own staffers were involved in handling funding applications under the grants program before presenting them to Ms McKenzie prior to the election.

Mr Morrison has rejected suggestions funding allocations originated from his office.

Nine newspapers also reported Ms McKenzie signed off on more than $1 million in grants for shooting clubs and associations, potentially opening her up to further allegations of conflicts of interest.

Ms McKenzie, a keen shooter herself, has repeatedly refused to step down from her leadership role in the Nationals Party and from the government frontbench.

Mr Gaetjens was given the additional task of looking at whether Ms McKenzie breached rules in regard to her non-declaration of the membership of a Victorian gun club which received $36,000 from the program.

The Minister has argued she did not need to declare the membership as it was a gift provided to her in January 2019 and round two funding from the program became available in December 2018.

And, as the gift was valued at less than $300, it did not meet the threshold for declaration, she said.

Nationals leader and Deputy Prime Minister Michael McCormack has defended his deputy and called out his colleagues for speaking anonymously to the media and positioning themselves to replace Ms McKenzie.

Labor argues Ms McKenzie has breached three ministerial standards: observing fairness in making official decisions; using taxpayer resources “through the lawful and disinterested exercise of the statutory and other powers available to their office”; and declaring and registering any personal interests.

- with AAP