Murray-Darling Basin water management faces 'unique fraud risks', audit reveals

Ernst & Young report previously withheld from the public says $3.2bn water fund poses serious risks

The commonwealth faces "unique fraud risks" arising from its management of the $3.2bn portfolio of environmental water in the Murray-Darling Basin, an internal audit has found.

The audit, written by Ernst & Young, and previously withheld from the public, found the Commonwealth Environmental Water Holder (CEWH) and the near $3.2bn worth of water it controls, was at risk of being defrauded by state agencies, individual officers within those agencies and private landholders.