Macarthur MP, Dr Mike Freelander, has reiterated the need for a national Integrity Commission.
Speaking in the wake of revelations the federal government had paid almost $30 million for 12 hectares of farming land with a market value of $3 million, Dr Freelander said it “reeks of incompetence’’.
“I am most disappointed by revelations that the Federal Government has grossly overpaid for land for the development of Western Sydney Airport’s second runway,’’ he said.
“Labor stands for integrity and transparency in Government – we have consistently called for the creation of a National Integrity Commission, and will continue to fight to see that it is established,’’ Dr Freelander said.
The Australian National Audit Office (ANAO) investigated the 2018 transaction between the department of infrastructure and the Leppington Pastoral Company, which is owned by the Perich family, the Macarthur region’s billionaires.
The government paid $2.4 million per hectare.
The auditor-general, Grant Hehir, decided to investigate after the department of infrastructure – for annual reporting purposes – listed the value of the land $3.065 million, close to a tenth of the price it had paid 11 months earlier.
The government wanted to buy what is known as the “Leppington Triangle land’’ and use it for a second runway at Western Sydney Airport in 30 years’ time – if it was needed.
The land acquisition process was undertaken by the Western Sydney Unit within the Department of Infrastructure, Transport, Regional Development and Communications.
The ANAO investigation found that decision-makers “were not appropriately advised on the land acquisition”.
“Formal briefings omitted relevant information, such as: the purchase price; that the price exceeded all known market valuations of the land and the method of acquisition,’’ said the ANAO report which was published on Monday.
“Advice from the department on value for money was inadequate and unreliable.
“Decision-maker approval was not evident for some of the actions taken.
“A subsequent departmental review of the acquisition process lacked rigour and did not provide a reasonable basis for concluding that the transaction was settled for an appropriate value,’’ the report said.
“The Coalition Government must be appropriately scrutinized for this failure to responsibly manage taxpayer’s money,’’ says Dr Freelander.
“Time and time again, the Coalition has demonstrated that they are not the responsible economic managers that they profess to be.
“They have a history of blowing the Treasury’s funds, and awarding lucrative government contracts in the most irresponsible of ways.
“The Coalition Government consistently fails to invest in infrastructure and services for Macarthur and South West Sydney.
“It is disappointing that they cannot provide our community with the investment that we desperately need to drive job creation and economic growth, but can manage to accidently overpay millions of dollars for a parcel of land,’’ Dr Freelander said.
A spokesperson from the Department of Infrastructure, Transport, Regional Development and Communications said the department “acknowledges the findings of the ANAO and has agreed to all recommendations contained in the report.
“The key findings of the audit relate to the administrative activities of officials of the department two years ago.
“The department has launched an investigation of staff conduct in the matter and will follow the due process of a formal investigation with an independent investigator.”
