A 2008 decision by then-Treasurer Andrew Barr to sell a government-owned swimming pool for $180,000 has ballooned into a multi-million dollar financial burden for the ACT government, according to a recent audit report.
The Original Sale
In 2008, the ACT government sold the former Civic Olympic Pool site to a private developer for $180,000. The pool had been closed since 2007. The sale was approved by Andrew Barr, who was the Treasurer at the time.
Escalating Costs
The audit reveals that the government has since spent over $3 million on legal fees, remediation, and other costs related to the sale. The total financial impact is expected to exceed $10 million, including lost revenue and ongoing liabilities.
According to the audit report, the government failed to adequately assess the risks associated with the sale, leading to costly legal disputes and environmental cleanup obligations.
Audit Findings
The audit, conducted by the ACT Auditor-General, criticized the government's handling of the sale. It stated that "the sale process lacked transparency and failed to protect the public interest." The report also noted that the government did not conduct proper due diligence on the buyer or the site's environmental condition.
Political Fallout
Opposition politicians have seized on the report, calling for an inquiry into Barr's role in the sale. Shadow Treasurer Mark Parton said, "This is a staggering waste of taxpayer money. Andrew Barr sold a valuable public asset for a pittance, and now we are all paying the price."
Chief Minister Barr has defended the decision, arguing that the sale was made in good faith and that the subsequent costs were unforeseen. "At the time, this was a sound financial decision. We could not have predicted the legal challenges that arose," Barr said.
Broader Implications
The case highlights the risks of privatizing public assets without thorough risk assessment. The ACT government has since revised its asset sale guidelines, but the financial damage from this sale continues to mount. The audit recommends that future sales include comprehensive risk analysis and greater transparency.
