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The federal government has pulled taxpayer funding from Australia’s top disaster relief organisation after an internal revolt over allegations of fraud and misuse of funds plunged it into voluntary administration.
Disaster Relief Australia was feted 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 the Black Summer bushfires.
But in December, this masthead revealed claims that Disaster Relief Australia (DRA) inflated membership numbers, used opaque recruitment practices, prioritised marketing over missions, and pushed out whistleblowers who raised concerns.
In a letter to volunteers on Thursday, Freeman said the federal government had suspended its taxpayer funding.
“The reason behind DRA funding being suspended is both National Emergency Management Agency [NEMA] and Business Grants Hub are aware of the allegations of fraud and misuse of government funding claims made by a very small group of individuals against our organisation,” Freeman, the DRA chair, said.
“However, an independent investigation did not substantiate, on the available and relevant evidence, allegations of organisational or management level fraud, misuse of funds, or irregular or inappropriate hiring processes.”
Last year, eight whistleblowers claimed DRA had lost its way as a veteran-led organisation by inflating membership numbers, engaging in wasteful spending, and fostering a culture of censorship and retribution.
DRA said at the time it had 6700 volunteers registered to assist in emergencies. Internal documents revealed that only 2503 were ready to deploy.
DRA volunteer Rhonda Sheil, a former emergency nurse, said she was “bloody angry” after she claimed DRA told her not to remove the names of volunteers who had stopped working with the organisation because it needed to justify its funding, putting volunteers and communities at risk in disaster zones.
The claims by Sheil and several other whistleblowers, including former army chaplain Chris Graeme-Drury, triggered an investigation by the National Emergency Management Agency, which remains ongoing.
“In November 2025, DRA employees made serious allegations about the management of DRA, including the potential misappropriation of Australian government grant funding,” a National Emergency Management Agency spokesperson said.
“Upon receipt, NEMA commenced actions under the Commonwealth Fraud and Corruption Control Framework to assess and investigate those allegations.”
The spokesperson said DRA’s move into voluntary administration was disappointing and that the decision to withhold funding did not constitute findings against DRA.
But Freeman said DRA could not continue to operate without millions of dollars in government funding. Fort Restructuring has been appointed to manage the voluntary administration, which will impact 90 employees and thousands of volunteers.
“We understand and appreciate this period, and uncertainty will be unsettling for the many veterans and volunteers who have selflessly given their time, knowledge and skills to help communities in Australia and beyond,” Fort’s administrator Mark Robinson said.
Freeman said the decision was reversible if the federal government recommitted funding and DRA intended to resolve the situation as quickly as possible.
“This is incredibly disappointing and disruptive for us all,” he said. “We assure you that we have done all within our power to try and avoid reaching this situation and will continue to work with the National Emergency Management Agency via the administrator to resolve the matter.”
In a statement, the DRA Redress and Complaints Group, formed by the whistleblowers, said that when they attempted to resolve their concerns internally, they were ignored. They rejected claims that they were responsible for the organisation’s move into voluntary administration.
“From these challenges, there remains hope that something stronger can emerge – an organisation rebuilt on transparency, integrity, and respect for the volunteers and staff who form the backbone of disaster response in Australia,” they said.
Fort expects to hold its first creditors meeting on March 24.
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Eryk Bagshaw is an investigative reporter for The Sydney Morning Herald and The Age.He was previously North Asia correspondent. Reach him securely on Signal @bagshawe.01Connect via X or email.
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