Northern Territory government denies media event to mark the first concrete pour was staged but Labor senator and MPs ask auditor general to investigate

This article is more than 4 years old

This article is more than 4 years old

The federal Labor party has written to the auditor general requesting the funding of a Northern Territory hospital at the centre of an alleged government media stunt be examined.

The Palmerston hospital project, which has $110m in federal funding, came under scrutiny this week when the NT government was accused of staging a media stunt at the construction site. The health minister, John Elferink, invited media to attend the first concrete pour last Friday, only for the hole to be filled in and covered up in the days following.

The NT government denied the event was staged and said construction site managers Lend Lease filled it in for “public safety” but did not answer questions on why it was dug in the first place or who made the decision.

On Friday, Labor senator Nova Peris and MPs Catherine King and Warren Snowdon said they had requested the auditor general look into the funding of the hospital, which appeared to have had “no meaningful construction” take place despite progress payments of $56m.

“Despite promises by the CLP that construction would begin in 2014, the only work that has occurred at the site appears to have been a hole being dug, part filled with concrete, cameras invited for a media event with the CLP minister, and then the hole filled over,” read the statement.

“In spite of this, Department of Health officials this week told Senate Estimates they have accepted evidence from the NT government that work on the site has commenced, clearing the way for a $35m payment.”

Labor has requested the auditor general conduct a performance audit into the project agreement but a spokesman for the office said it had not been received yet.

A copy of the letter, seen by Guardian Australia, asks the auditor-general to consider legislation around grant payment strategies and verifying milestones before payments are made.

The Department of Health told Senate estimates on Wednesday that payments totalling $56m based on construction milestones had been paid to the NT government based on evidence of construction commencement but were not linked to this particular event.

“The federal government has paid $56m to the CLP government to dig a hole and fill it in,” Peris said on Wednesday.

The next payment of $20m is scheduled for May, the current deadline for complete construction of the hospital base, and the federal minister for health, Sussan Ley, said no funds would be released until project milestones were reached.

NT government paid $56m by Coalition 'to dig a hole and fill it in' at hospital site Read more

“The federal government continues to support the Palmerston hospital project – as evidenced by our $110m investment,” Ley told Guardian Australia in a statement on Wednesday.

“Our number one focus is to ensure this essential health infrastructure for the territory is finished on time and on budget and the commonwealth will continue to keep a close eye on progress to ensure this happens.

“Any impacts as a result of delays will be borne by the NT government.”