A scathing report by the NSW Auditor-General has been released, calling Transport for NSW (TfNSW)’s controversial decision to acquire contaminated land at Camellia “poorly informed”.
The audit, released by NSW Auditor-General Margaret Crawford, was requested by Transport Minister Andrew Constance in November last year, following damning revelations of a dodgy land deal at 4-6 Grand Avenue, Camellia.
TfNSW paid Grand 4 Investments $53.5 million for the contaminated six-hectare site in 2016 and assumed liability for addressing its environmental and contamination issues.
This was despite the vendor paying $38.15 million for the land just seven months prior.
Once cleared of asbestos, arsenic and chromium contaminants, the site will make way for a stabling and maintenance facility for the Parramatta Light Rail.
The clean up bill will cost $116 million – more than double the original estimated price.
The audit found that TfNSW conducted an “ineffective process” when it purchased the site and that its internal policies and procedures to guide the transaction were, and continue to be, insufficient.
“TfNSW did not obtain a formal valuation of the site, nor did it assess the financial impact of environmental remediation before the purchase,” the report stated.
“TfNSW did not have sound probity management controls in place for the transaction, and decision-making was rushed and poorly informed.
“These omissions from TfNSW’s application of due diligence over the use of public money mean that TfNSW is unable to demonstrate that the acquisition represented value for money for the state.
“TfNSW has identified that the acquisition was at increased risk of fraudulent activity and financial loss but has not investigated whether these risks were realised.”
The Auditor-General has made seven recommendations to address the issues, which included ensuring deficiencies identified are not affecting TfNSW’s ethical stewardship of public resources, and that an independent investigation is conducted to see if this deal was affected by fraudulent activity or misconduct.
Other recommendations called for better compliance controls, the reworking of acquisition policy framework and the improvement of accountability and transparency.
In response, TfNSW Secretary Rob Sharp said he acknowledges the deficiencies in the management of the acquisition.
“TfNSW is committed to making the necessary changes to ensure its property and acquisition program meets the community’s expectations regarding integrity, rigour and value for money,” he stated in a letter to Ms Crawford.
“I accept the report’s recommendations that are directed to the agency and TfNSW will develop a program of work to address their implementation.”
This program will be developed for TfNSW’s June Audit & Risk Committee and is to be provided to the Auditor-General by June 30.
Troy Dodds is Parra News' Managing Editor and Breaking News Reporter. He has more than 20 years experience as a journalist, working with some of Australia’s leading media organisations. In 2023, he was named Editor of the Year at the Mumbrella Publish Awards.