Scott Morrison refers Bridget McKenzie’s handling of sports grants program for investigation

Scott Morrison has referred former sports minister Bridget McKenzie’s handling of the $100m sports grants program to his department to investigate whether ministerial standards were breached.

In a statement on Wednesday, Morrison revealed that last Friday he referred the auditor general’s scathing report into the $100m community sport infrastructure grant program to the department of the prime minister and cabinet “for advice in relation to any actions in the application of the statement of ministerial standard”.

“The prime minister is awaiting the secretary’s advice and will continue to follow due process,” the statement said.

Earlier, the attorney general Christian Porter defended McKenzie after the revelation she approved a $36,000 grant to a shooting club of which she is a member, claiming being a “paper member” of a club raises no probity issue.

Guardian Australia reported on Wednesday that more than $1m in sports grants was handed to nine clubs that boast senior Coalition MPs as members or patrons, including the $35,980 grant to the Wangaratta Clay Target Club, which is not listed on McKenzie’s register of interests.

McKenzie told the Age that since her membership of the club was a “gift” in January 2019 and valued at less than $300 a declaration to the Senate was “unnecessary”.

Morrison confirmed that “the matters raised in the media today have also been referred”.

Earlier on 6PR Radio, Porter clarified that he is “not investigating or reviewing” the community sport infrastructure grant program, but rather has sought legal advice from the Australian Government Solicitor about McKenzie’s authority to approve grants.

Related: Sport grants: more than $1m given to nine clubs linked to Coalition MPs

The Australian National Audit Office said that it was “not evident to the ANAO what the legal authority was” for McKenzie to approve grants, but Porter suggested the minister may have had an “overarching” ability to direct Sport Australia.

On Wednesday Anthony Albanese renewed Labor’s calls for McKenzie to resign. The shadow health minister, Chris Bowen, said there was “no excuse” for McKenzie’s conduct, and accused Scott Morrison of being “up to his neck in it” because he refused to sack her.

Before the latest revelation, McKenzie’s position had been backed by Morrison, the Liberal deputy leader, Josh Frydenberg, and Nationals colleague David Littleproud.

Porter said he “did not know the individual circumstances” but noted it is “not unusual for a local member to be a member or patron of a club that might get a grant”.

“In this case of course the local member was also a minister – as to the procedures of that particular grant I don’t have the information to comment.

“The situations are different depending on your level of involvement – being a mere patron or a paper member of a club is different from having a very active role in a club.”

Porter said it was “fair” of the auditor general to advise better conflict of interest policies, but noted that recommendation was directed at Sport Australia.

Porter acknowledged that McKenzie had “brought in considerations that were different” to Sport Australia, but argued ministers can exercise “executive authority” to depart from recommendations and take a “slightly different” view in selecting from eligible projects.

The auditor general’s report found that 70% of projects approved by McKenzie in the second round in March 2019 were not recommended by Sport Australia, rising to 73% in the third round in April 2019.

Porter then argued the sports grants did not constitute “rorts” or “pork barrelling” because they did not favour one side of politics over the other, with more Labor seats awarded grants than if McKenzie had not intervened.

“Having ministerial authority and oversight on those things is completely fair and reasonable – and all of these projects were deemed to be eligible.”

Related: Bridget McKenzie's sports grants program may be unconstitutional, expert warns

Porter said there was a “clear distinction” between McKenzie deciding her own ranking of projects and a minister awarding a grant to an ineligible project, as he said occurred in the Ros Kelly affair, without proper record keeping.

Porter said he did not believe there was “something here that requires some further level of attention in terms of probity … based on what I’ve seen”.

Earlier on Wednesday, the Liberal MP Tim Wilson told Sky News it was “ultimately a decision for the National party about who is deputy leader” but said it was up to McKenzie how to allocate funding between eligible projects.

ABC News Breakfast revealed that Somers Yacht Club received $172,606 and its treasurer Tim Brock had thanked the health minister Greg Hunt’s office for “work behind the scenes” to help win the grant.

“What we do is – like all MPs – and what all MPs should be doing is fighting for and advocating for projects within their electorate,” Hunt said.

Hunt said MPs should support worthy projects by writing letters of support and “making the case for them”.

McKenzie is likely to face renewed scrutiny when parliament resumes in February, with minor parties the Greens, Pauline Hanson’s One Nation and Centre Alliance offering to support a Senate inquiry into the program.