A key crossbencher has publicly questioned the Coalition granting millions of dollars to a charity linked to Governor-General David Hurley, around the same time Scott Morrison was secretly given power over a host of ministries.
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Jacqui Lambie network senator Tammy Tyrrell has joined a push to disallow the $18 million Australian Future Leaders Program, announced in the 2022 budget, which Mr Hurley personally lobbied the former prime minister over.
Speaking in Senate question time on Tuesday, Senator Tyrrell questioned whether the current government was reviewing the decision, saying it was "written up and approved a lot faster than normal".
"It's a foundation with no website. It appears to have no office, no staff, and no previous record," she said.
"When the grant was approved, there was no competitive process and merits review wasn't done ... The Governor-General might think it's a great idea, but with all due respect there's no detail, let alone transparency."
Senator Tyrell is part of a group of parliamentarians, including Greens senator David Shoebridge and independent MP Monique Ryan, which has moved to disallow the grant due to insufficient transparency.
Labor Senate leader Penny Wong said the funding would be reviewed "along with a number of measures" announced under the Coalition.
Senator Tyrrell noted media reports claiming the funding allocation overlapped with Mr Morrison's secretly assuming control over five key portfolios, which Mr Hurley signed off on and did not make public.
"I'm not suggesting [Mr Hurley] has done anything wrong, but aren't you worried about the public perception that creates?" she asked Senator Wong.
Senator Wong stressed the scandal would be investigated by former High Court justice Virginia Bell, but said she was "not in a position" to answer whether it was linked to the foundation funding.
Under the disallowance process, the government has 15 sitting days to bring the motion up for debate. If it does not do so, the grant is automatically scrapped.
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Prime Minister Anthony Albanese has consistently defended Mr Hurley over the saga, insisting he acted on advice of the government of the day.
Speaker Milton Dick on Monday confirmed he had rejected a push from the Greens to have Mr Morrison referred to the parliamentary privileges committee.
Labor could also scrap its funding in the October budget, which falls in the 15-day period.