Mark Butler: Anthony Albanese stands by Health Minister over wife Daniela’s $23m storm

Anthony Albanese has rallied in defense of his health minister after it was revealed that a company where Mark Butler’s wife worked would benefit from a $23.4 million government investment in cybersecurity.

Mr Butler was part of the federal budget committee which in the latest federal budget allocates funding to the Council of Small Business Organizations Australia (COSBOA) to help protect businesses against cyber threats.

Daily Mail Australia revealed that his wife, former journalist Daniela Ritorto, worked part-time as a “senior consultant” at COSBOA’s “delivery partner” 89 Degrees East.

While Ms. Ritorto’s employee profile is still on the website, Mr. Butler said in question time that she no longer works for the company.

Deputy Opposition Leader Sussan Ley asked for more details about the situation during Question Time on Thursday.

Mr Albanese defended his cabinet colleague and insisted that ‘the ERC [expenditure review committee] does not take into account that level of detail. It was never considered.

“It’s up to them which contractors they use to deliver a program.”

After his brief statement, the opposition booed, with one member of parliament yelling, “Is that it?”

Ms. Ley repeated her question, asking Mr. Butler why he did not withdraw from any decision-making regarding the grant.

Mr Butler said he takes the mandatory code of conduct ‘very seriously’, which is why he has listed Ms Ritorto’s role in his register of interests.

‘ Her assignment contract until the end of 2021 had ended due to the birth of our child. There has never been a case for me for a decision on that company.

“If that were to happen, I would manage with long-term agreements about possible conflicts.”

The Cyber ​​Wardens initiative, which has been awarded a government grant, names 89 Degrees East as a ‘founding partner’.

Ms Ritorto was recently on maternity leave after giving birth to a son in February 2022.

The connection between the two companies – which is readily available online – was reportedly not made clear during spending committee discussions over funding.

As such, Mr. Butler was never aware of or concerned about any potential conflict of interest.

A spokesperson for Mr Butler’s office said on Wednesday night: ‘When the measure in question was brought before the ERC there was no mention of the involvement or possible involvement of 89 Degrees East.

‘The minister had nothing to say.’

89 Degrees East posted back in January about his involvement in the project. The budget announced that cash funding was due May 9.

At Senate Estimates on Tuesday night, Treasury Secretary Katy Gallagher said the contract awarded to COSBOA was negotiated with labor ministers.

She said, “It was a government decision to fund this,” before adding that it was “part of the standard budget process.”

Justifying the decision to award the funding, Senator Gallagher described COSBOA as “the top small business group.”

“They are the obvious choice to lead a program like this, but there has to be a process around the details of this grant. That has yet to be completed.’

The Cyber ​​Wardens program will create up to 60,000 small business jobs within three years, positions primarily tasked with preventing cyber scams and attacks.

Senator Gallagher was called out at the grant hearing, but maintained her belief that Labor had made the right choice in allocating the money.

Australia has been described as a ‘hacker’s haven’ following breaches at both Optus and Medibank in recent months.

As a result, Labor has invested significantly in cybersecurity, with $101.6 million allocated over five years for multiple projects.

But there are concerns about the decision-making process behind the funding in light of 89 Degrees East’s ties to both Labor and COSBOA.

According to ministerial standards, all official decisions involving a minister must be free of bias or “irrelevant considerations.”

“Ministers should take into account the pecuniary and other private interests of their family members, to the best of their knowledge, as well as their own interests, when considering whether a conflict or apparent conflict arises between private interests and official duty.”

The Government Expenditure Review Committee is made up of some of the most senior members of the Government including; Mr Albanese, Treasurer Jim Chalmers, Secretary of State Penny Wong, Deputy Prime Minister Richard Marles and Chancellor of the Exchequer Katy Gallagher.

Mr Butler has been a member of the House of Representatives since 2007 and was a minister in the Gillard and Rudd governments before being assigned the health role under Mr Albanese.

He and his wife got married in 2021 after three years of dating.