Taxpayer funding pulled from disaster response team after allegations of fraud
The federal government has withdrawn taxpayer funding from Australia’s largest disaster relief agency after a civil unrest over allegations of fraud and misuse of funds dragged the agency into voluntary administration.
Australian Disaster Relief was welcomed by Prime Minister Anthony Albanese and led by two of Australia’s most decorated military commanders, Major General Andrew Freeman and Brigadier David Smith. In 2022, it was awarded a $38 million federal government grant to run hundreds of disaster relief operations across Australia, including responses to the Lismore floods, Cyclone Jasper and Black Summer bushfires.
However, in December this imprint It revealed allegations that Disaster Relief Australia (DRA) inflated membership numbers, used opaque recruitment practices, prioritized marketing over missions and pushed out whistleblowers who raised concerns.
In a letter to volunteers Thursday, Freeman said the federal government is suspending taxpayer funding.
“The reason behind the suspension of DRA funding is both the National Emergency Management Agency and [NEMA] and Business Grants Hub is aware of allegations of fraud and misuse of government funding claims made against our organization by a very small group of individuals,” said Freeman, DRA president.
“However, an independent investigation was unable, based on available and relevant evidence, to substantiate allegations of fraud, misappropriation of funds, or irregular or improper recruitment processes at the organizational or management level.”
Last year, eight whistleblowers claimed The DRA had lost its way as a veteran-led organization by inflating membership numbers, engaging in wasteful spending, and encouraging a culture of censorship and punishment.
DRA said at the time that 6,700 volunteers were registered to assist with emergencies. Internal documents revealed that only 2503 was ready for deployment.
DRA volunteer Rhonda Sheil, a former emergency nurse, said she was “very angry” after claiming DRA told her not to remove the names of volunteers who stopped working with the organization because it had to justify its funding and was putting volunteers and communities in disaster areas at risk.
The allegations by Sheil and several other whistleblowers, including former Army chaplain Chris Graeme-Drury, triggered an ongoing investigation by the National Emergency Management Agency.
“In November 2025, DRA staff made serious allegations about DRA management, including misuse of Australian government grant funding,” a National Emergency Management Agency spokesperson said.
“Following receipt, NEMA initiated actions under the Commonwealth Fraud and Corruption Control Framework to assess and investigate these allegations.”
The spokesman said the DRA’s transition to voluntary administration was disappointing and the decision to suspend funding did not constitute a finding against the DRA.
But Freeman said DRA cannot continue operating without millions of dollars in government funding. Fort Reconstruction has been appointed to manage the volunteer administration, which will affect 90 employees and thousands of volunteers.
“We understand and appreciate this period, and the uncertainty will be troubling for the many veterans and volunteers who selflessly give their time, knowledge and skills to help communities in Australia and beyond,” said Mark Robinson, director of the Fort.
Freeman said the decision could be reversed if the federal government recommits funding and the DRA aims to resolve the situation as quickly as possible.
“This is an incredibly disappointing and devastating situation for all of us,” he said. “We assure you that we have done everything we can to avoid this situation and will continue to work with the National Emergency Management Agency, through the administrator, to resolve the matter.”
Eryk Bagshaw is an investigative reporter for The Sydney Morning Herald and The Age. He was previously a North Asia correspondent. Reach him securely on Signal @bagshawe.01Connect with: X or email.
