The wife of the health minister is employed by a company that will benefit from a $23.4 million investment in cybersecurity.
Mark Butler is a member of the spending review committee, along with the Prime Minister, Treasurer and senior Labor ministers, tasked with allocating funding in the 2023-2024 budget.
Questions have been raised about a contract handed out by the group to the Council of Small Business Organizations Australia (COSBOA), to help protect businesses against cyber threats.
The program lists company 89 Degrees East as a ‘founding partner’ and COSBOA describes the company as a ‘delivery partner’.
Mr Butler’s wife, journalist Daniela Ritorto, is listed as a “senior consultant” who is currently on maternity leave on the 89 Degrees East website.
Her role with the company is also listed on Mr. Butler’s register of interests.
Daily Mail Australia understands that the link between the two companies – which is readily available online – has not been made clear during discussions in the spending committee over funding.
As such, Mr. Butler was never aware of or concerned about any potential conflict of interest.
Mr. Butler and his wife got married in 2021 after three years of dating
89 Degrees East posted about its involvement in the project way back in January and is listed as a “founding partner” on the Cyber Wardens website
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 about its involvement in the project back in January and is listed as a “founding partner” on the Cyber Wardens website.
The budget announcing the cash financing was on 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.’
Daily Mail Australia understands that the link between the two companies – which is readily available online – has not been made clear during discussions in the spending committee over funding. As such, Mr. Butler was never aware of or concerned about any potential conflict of interest
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.
A senior opposition staffer said Mr Butler must confirm whether he had any involvement in the allocation of funds to a company that had such close ties to whoever was allocated the funding.
Mr Butler is a close ally of Prime Minister Anthony Albanese, who is also a member of the spending control committee
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.”
Mr Butler is a close ally of Prime Minister Anthony Albanese, who is also a member of the spending control committee.
The committee is made up of some of the government’s most senior members 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.