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Canberra Today 16°/18° | Friday, March 29, 2024 | Digital Edition | Crossword & Sudoku

Auditor slams integrity and probity of Land Development Agency processes

Dr Maxine Cooper

ACT Auditor-General, Dr Maxine Cooper, has presented a performance audit report Certain Land Development Agency Acquisitions.

“Transparency, accountability and rigour have been lacking in the processes used by the Land Development Agency for the acquisition of three properties and two businesses considered in the audit,” Maxine said.

“Without these the integrity and probity of the acquisition process cannot be demonstrated.

“The Land Development Agency acquired:

  • Block 24, Section 65, City (land adjacent to Glebe Park) – for $3.8 million
  • Block 13, Section 33, Acton (Mr Spokes Bike Hire) – for $1.1 million (and $1.00 for the associated business and $52,338 for owners’ costs associated for the preparation of the deed of surrender)
  • Block 16, Section 33, Acton (Dobel Boat Hire) – for $1.0 million and Lake Burley Griffin Boat Hire (a business which operated under a sub-lease from Dobel Boat Hire) – for $575,000 (and $10,000 as a contribution for legal and accounting fees and $16,387 to settle unpaid rent payable to Dobel Boat Hire)

“Administrative issues related to sourcing professional advice, procurement for contractors and the approval process for making acquisitions were identified.

“While the number of acquisitions considered were few, given the significance of the findings I am considering undertaking a broader audit on the Land Development Agency,” said Dr Cooper.


The LDA has welcomed the findings:

The Auditor General’s Performance Audit into Certain Land Development Agency Acquisitions tabled today in Legislative Assembly has been welcomed by LDA CEO David Dawes.

The audit into three land purchases related to the City to the Lake project has highlighted the need for improvement in the LDA’s processes to ensure the highest level of accountability and transparency.

“Earlier this year the Auditor General referred a public interest disclosure to the LDA for investigation. Given the nature of the disclosure I decided to refer the matter back to the Auditor General for a comprehensive and impartial investigation. The Auditor General subsequently chose to conduct a performance audit,” Mr Dawes said.

“Although I am satisfied, as is the LDA Board, that the outcomes achieved for these acquisitions were reasonable, appropriate and necessary, it was apparent that the processes used to facilitate these purchases were in need of improvement.

“The LDA has already taken steps to strengthen our processes to improve accountability and transparency and welcomes the recommendations in the Auditor General’s report.

“I look forward to implementing further changes to make the LDA’s processes even stronger and more transparent as we continue to deliver the housing opportunities that Canberra needs while providing a return to government for the benefit of the ACT community.”

Since the audited land acquisitions occurred in early to mid 2015 the LDA has made significant structural, staffing and process changes that address and in some cases go beyond, the Auditor General’s findings and recommendations.

These changes include:

— Restructure of the City to the Lake project team and its composition and establishment of robust governance arrangements.
— Centralisation of processes for obtaining valuations to ensure high standards and consistency.
— Re-establishment of ‘in-house’ Corporate and Governance services to support the effective operation of the LDA.
— Increased procurement training for all staff.

In addition the former Australian Auditor-General, Mr Ian McPhee, has been engaged to undertake a Governance Framework Review for the LDA and the broader Economic Development.

“The Auditor General has recognised the difficulties of making commercial purchases in an open market transaction and has highlighted a number of process improvements that need to be made to ensure accountability during these complex transactions,” Mr Dawes said.

“The purchase of the properties involved was essential for the implementation of the City to the Lake project. I am satisfied the prices paid for these acquisitions were reasonable, appropriate and necessary to allow this key government priority to progress.”


The Liberals’ Alistair Coe is calling on the Chief Minister to resign:

Today’s damning Auditor-General’s report into Certain Land Development Agency Acquisitions demonstrates that Andrew Barr has been complicit or grossly negligent with regards to serious issues in the LDA. As a result, the Canberra Liberals believe he’s unfit to be Chief Minister and are calling on him to resign, Deputy Leader of the Opposition Alistair Coe said today.

“The report reveals major failings of the LDA with regards to highly questionable deals involving land next to Glebe Park in the City, Mr Spokes Bike Hire and Dobel Boat hire,” Mr Coe said.

“The LDA has been central to Andrew Barr’s Chief Ministership and he has failed to keep it in check. He has presided over:

  • Manipulation of documents requested under Freedom of Information.
  • A lack of transparency, accountability and rigour in process at the LDA.
  • Major issues around integrity and probity at the LDA.

“This report lifts the veil on the dealings of the LDA for all to see. Given the seriousness of the findings a wider investigation will be conducted,” Mr Coe concluded.

“Andrew Barr is the responsible Minister and his management demonstrates that he’s either been complicit or grossly negligent. He must resign, he is unfit to lead,” Mr Hanson concluded.

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Thank you,

Ian Meikle, editor

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