The Australian National Audit Office will probe Australia's fruitless bid for the 2022 World Cup to determine whether any taxpayer funds ended up in the pockets of FIFA officials.
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The federal health department, which has responsibility for the $46.5 million in public money spent on the bid, has also sought further information from Football Federation Australia to assure itself that public funds were not used for a $500,000 payment that was allegedly stolen by former FIFA vice-president Jack Warner.
The Australian Federal Police is assessing allegations that Mr Warner stole the money, which FFA paid in 2010 into a football association bank account Mr Warner controlled, ostensibly for a stadium upgrade in Trinidad and Tobago.
Mr Warner, a former president of the Confederation of North, Central American and Caribbean Association Football, was indicted by United States authorities on wire fraud, racketeering and money laundering charges last month.
Health department deputy secretary Andrew Stuart told a Senate hearing on June 2 that the $500,000 payment had come from FFA's funds and not the public money provided to the federation for the World Cup bid, which had been "fully acquitted".
But in a letter to the Senate Community Affairs committee dated June 19, Mr Stuart wrote that the department had sought further information from FFA in relation to the payment.
"The department holds very detailed acquittals of funds expended from the Australian government grant ... the department is not aware of any evidence of co-mingling of funds. However in light of the issues raised the department is corresponding with FFA to obtain further assurance in relation to the payment to CONCACAF," Mr Stuart wrote.
Qatar was awarded the hosting rights to the 2022 World Cup in December 2010.
Mr Stuart wrote that he learned of an Australian National Audit Office investigation into the bid when he contacted the office, following the Senate hearing, to offer assistance to any possible review.
"The ANAO independently determined to undertake a review and the Department of Health is fully co-operating with the ANAO as well as the Australian Federal Police," he wrote.
The revelation came as the Senate voted for an inquiry to bolster laws against bribery and corruption.
The motion for the inquiry was initiated by independent senator Nick Xenophon and seconded by Palmer United Party senator Zhenya "Dio" Wang.
The inquiry will be chaired by Labor senator Sam Dastyari, who was also instrumental in setting up the inquiry.
The terms of reference for the inquiry specifically include bribery involving international sporting bodies.
Senator Xenophon said the inquiry would examine why it was so difficult to prosecute Australian companies and organisations for bribery and corruption overseas.
"Overseas jurisdictions are showing the way here, including incentives for self-reporting once a company has discovered internal corruption as well as monetary incentives for whistle-blowers. On the other side, the inquiry will examine more latitude for authorities to negotiate agreements and plea bargains, rather than just have the big stick of a criminal prosecution," he said.
