AUDITOR-GENERAL Maxine Cooper has presented the report on the Sale of ACTTAB.
“The sale of ACTTAB successfully realised $105.5 million for the Territory. This far exceeded expectations. The sale was undertaken in a timely manner. Tabcorp was selected as the successful purchaser with the appropriate experience, capacity and integrity to operate a wagering business,” Maxine said.
“Although a successful sale was achieved, the high standard of probity that would be expected for such a complex, large and high risk sale was not evident. There was a lack of transparency due to poor documentation. Some processes were inadequate, including there being no finalised risk plan and the one that was produced being developed too late to influence processes.”
The ACTTAB sale process involved two stages: Stage 1 – Expression of Interest, involving five interested parties; and Stage 2 – the Bid, involving two potential purchasers.
“There were inadequacies in the Expression of Interest stage due to the poor quality, and the inadequate assessment, of some evaluation criteria. However, the assessment of Bids was effectively undertaken.
“Correcting the inadequacies, although important in terms of probity, may not have changed the result. However the inadequacies could have been relatively easily avoided.”
One recommendation was made to assist future sales and procurements. It focused on risk management, evaluation criteria, probity and the role of the probity advisor in complex, high value or high risk sales and procurements, and documentation and record keeping.
UPDATE: The Liberal’s Brendan Smyth is less than impressed with these findings:
“These findings are a damning indictment on the Government’s handling of the ACTTAB sale,” said Mr Smyth.
“In this deal, Tabcorp was awarded a 50 year license with zero tax on tote earnings, and less than 1% on sports bookmaking license. While just across the border in NSW, the TAB paid 19% and 10% in respectively.
“The Government has set a dangerous precedent with their handling of this sale. If they got it this wrong, how can you trust them with the assets sale program for Capital Metro?
“When it comes to selling the Territory’s publicly owned assets, the end does not justify the means.
“The Auditor-General’s findings are nothing more than further proof of the ACT Government’s contempt for Canberrans who are faced with ever increasing taxes, charges, and rates to pay for their follies,” said Mr Smyth.
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