❓ A WA parliamentary question scrutinises the Minister's awareness of Carnegie Clean Energy's financial instability when authorising a $2.6m payment for the Albany Wave Energy project, questioning the rationale behind the reduced payment and seeking transparency.
AnsweredQoN 4398Legislative Assembly
Asked
27 November 2018
Member
Portfolio
Regional Development; Agriculture and Food; Minister Assisting the Minister for State Development, Jobs and Trade
QuestionView source ↗
I refer to the Albany Wave Energy project, and ask: (a) was the Minister aware of the pending release of Carnegie Clean Energy Limited’s Financial Report for year ending June 2018 at the time of authorising a payment of $2.6m as a renegotiated first milestone payment to Carnegie; (b) was the Minister aware of Carnegie Clean Energy Limited’s Financial Report for year ending June 2018 when she met with Carnegie to discuss the resignation of the CEO on 3 October 2018; (c) was the Minister aware of Carnegie Clean Energy Limited’s Financial Report for year ending June 2018, when she released her final decision confirming payment of $2.6m to Carnegie on 5 October 2018; (d) at the time of the final decision to confirm payment of $2.6m to Carnegie, was the Minister aware of the annual financials audit opinion that “the existence of material uncertainty may cast doubt about the groups ability to continue as a going concern.”; (e) what components of the first milestone payment to Carnegie as described in the Financial Assistance agreement were not met, thereby leading to a renegotiated payment of $2.6m and not $5.2m; and (f) will the Minister table agency advice in respect to her decision to pay Carnegie $2.6m as a renegotiated first milestone payment?
AnswerView source ↗
Answered
12 February 2019
Responded by
Minister representing the Minister for Regional Development; Agriculture and Food; Minister Assisting the Minister for State Development, Jobs and Trade
Response time
3 days
(a) The decision to authorise payment was made by the Department of Primary Industries and Regional Development (DPIRD) as the contracting party.
(b) The Minister was aware of Carnegie’s financial situation prior to the meeting with Carnegie’s Chairman and new CEO, held on 2 October 2018 (not 3 October as stated in the question).
(c) Refer to (a) and (b). The final decision to confirm payment was made by DPIRD.
(d) The Minister was aware of the financial challenges facing Carnegie at the time that the final decision to confirm payment was made.
(e) DPIRD was satisfied that Carnegie had commenced site development activities but did not believe that the aspect of the milestone relating to procurement of the common-user infrastructure had been demonstrated.
(f) The decision to pay Carnegie $2.625 million as a renegotiated first milestone payment was made by DPIRD and, as such, there is no agency advice to table.
(b) The Minister was aware of Carnegie’s financial situation prior to the meeting with Carnegie’s Chairman and new CEO, held on 2 October 2018 (not 3 October as stated in the question).
(c) Refer to (a) and (b). The final decision to confirm payment was made by DPIRD.
(d) The Minister was aware of the financial challenges facing Carnegie at the time that the final decision to confirm payment was made.
(e) DPIRD was satisfied that Carnegie had commenced site development activities but did not believe that the aspect of the milestone relating to procurement of the common-user infrastructure had been demonstrated.
(f) The decision to pay Carnegie $2.625 million as a renegotiated first milestone payment was made by DPIRD and, as such, there is no agency advice to table.
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