Coalition’s entire program could face independent investigation following request for audit taking in Sydney’s Westconnex and the Perth Freight Link
The Coalition’s entire infrastructure program could be subject to an independent investigation after the Labor party requested an audit into claims that the handling of Melbourne’s East West Link project reflected “systematic failures”.
Labor’s call follows a scathing report by the Australian National Audit Office (ANAO), which found the Abbott government had inflated the deficit during its first year in power by transferring $1.5bn to Victoria for the now-scrapped tollway project despite “clear advice” that the payments were premature. Continue Reading…
This audit examined whether the state had effectively managed the East West Link (EWL) project by assessing the total costs of the project, appropriateness of advice supporting key project decisions and the lessons for future major projects. The audit included 10 government agencies.
Over the life of this costly and complex project, advice to government did not always meet the expected standard of being frank and fearless. This highlights a risk to the integrity of public administration that needs to be addressed. The report makes recommendations to the Department of Treasury & Finance to provide guidance for development and delivery of major projects and for the Department of Premier & Cabinet to emphasise requirements for frank and fearless advice from the public sector.
Acting Auditor-General Dr Peter Frost tabled the East West Link Project report today. This audit examined whether the state had effectively managed the East West Link (EWL) project by assessing the total costs of the project, appropriateness of advice supporting key project decisions and the lessons for future major projects.
Peter Frost said, ‘The EWL project was terminated in June 2015 with more than $1.1 billion paid, or expected to be paid, by the state for little tangible benefit. This cost includes expenditure on the planning, development, procurement and termination of the project and will be partially offset by future proceeds from the sale of properties acquired for the project. Continue Reading…
The sum is a result of so-called “traffic guarantee” clauses inserted in the contracts for building the stretch of the M3 from Clonee to Kells and the N7 Limerick Tunnel.
The clauses mean the State pays more to the motorway operators when fewer cars or trucks use the roads.
According to an internal Department of Transport briefing document, the guarantees were introduced to address the worst case scenario of “what if no cars drive on the road” and were needed to attract bidders for the public private partnerships.