The Prime Minister Julia Gillard has announced oversight and accountability measures to oversee delivery of flood recovery programs.

A new Reconstruction Inspectorate has been established to increase scrutiny and accountability of rebuilding projects.

The Former Federal Finance Minister John Fahey has been appointed as Chair of the Reconstruction Inspectorate.  He will report directly to the Natural Disaster Recovery Cabinet sub-committee.

Other members will include Martin Albrecht, former Managing Director of Thiess and Matt Sheerin from Deloitte.

The Inspectorate will:

  • Scrutinise rebuilding contracts
  • Directly inspect projects to ensure they are meeting progress milestones
  • Investigate complaints or issues raised by the public
  • Work directly with state reconstruction agencies to develop contractual frameworks, tendering processes and project management systems
  • Scrutinise requests for reimbursement by local government for projects completed for the purposes of reconstruction
  • Examine high value or complex projects prior to execution

While the Inspectorate will be able to review any relevant project, it will have a particular focus on high value, complex contracts. The Inspectorate will not replicate the function or responsibilities of decision-making bodies such as the Queensland Reconstruction Authority. 

The roles, responsibilities and powers of the Inspectorate will be incorporated into the terms of any national partnership agreement or other agreement which delivers reconstruction funding from the Commonwealth.

The Inspectorate will be supported as necessary by others with expert knowledge of relevant fields, for example quantity surveying, construction management and contract law, as necessary.

In other measures, the states will be to required to provide independently audited financial statements to support any claim for infrastructure rebuilding, including verification of spending against any advance payments made. These statements must be certified by the Auditor-General.

The arrangements will be formalised in a National Partnership Agreement that will be signed by the Commonwealth and the relevant State Governments.

The Government will appoint former Chairman and CEO of UBS Australia, Mr Brad Orgill and Glenys Beauchamp, Secretary to the Department of Regional Australia, Regional Development and Local Government, to the board of the Queensland Reconstruction Authority.

A dedicated task force will be established to provide support for reconstruction work following the recent floods and cyclone. The task force, which is expected to operate for the next two years, will provide specialist assistance and advice to Federal Ministers involved in the flood recovery efforts and other relevant Commonwealth bodies including the Reconstruction Inspectorate.