Molhoek said evidence pointed to serious governance failings, unresolved conflicts of interest and complaints that he alleged were not resolved in a timely manner by the former government.<\/p>\n
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The committee referred 10 allegations to the Crime and Corruption Commission for investigation.<\/p>\n
Molhoek said the scheme was administered by a not-for-profit company, owned by two of Australia\u2019s largest bottlers, \u201ceffectively handing them monopoly control\u201d.<\/p>\n
He said COEX held substantial retained earnings, with no clear policy for using those funds for environmental or charitable purposes.<\/p>\n
\u201cInstead it appears those reserves have been used to reduce the bottlers\u2019 own contribution rates, effectively transferring value from Queenslanders back to the beverage manufacturers that controlled the scheme,\u201d he said.<\/p>\n
\u201cLet\u2019s be clear, it\u2019s everyday Queenslanders, mums, dads and kids who pay for this scheme.<\/p>\n
\u201cThey cover the costs of the refunds as they are all built into the wholesale price of every drink they buy<\/a>.\u201d<\/p>\n Molhoek said COEX\u2019s commercial relationship with Circular Economy Systems (CES), a joint venture between its two founding members, Coca-Cola and Lion, had received significant and increasing payments, and it also provided the payment technology underpinning the program, giving it access to large amounts of consumer data.<\/p>\n He said the broader community benefit was \u201coverstated\u201d, with the scheme generating $2.5 billion in revenue, with less than 40 per cent given to Queenslanders through refunds, and less than 2 per cent directly going to charities.<\/p>\n Molhoek said it appeared the problems were \u201cbaked into\u201d the scheme\u2019s structure from the start, and COEX was appointed without an open tender process.<\/p>\n The committee made 21 recommendations, including stricter oversight, ministerial approval of a plan to invest surplus revenue, mechanisms to improve recycling rates, ways to increase bottle recycling in workplaces and unit blocks, and more reverse vending machines.<\/p>\n It also recommended the minister consider expanding the eligibility of containers in the scheme. Milk and juice bottles are excluded, but wine and spirit bottles were added in 2023<\/a>.<\/p>\n