The Western Australian Police Force is under intense scrutiny after a report revealed taxpayers could be left more than $10 million out of pocket due to a costly lease agreement for a luxury private jet. The deal, intended to transport police and government officials, has been labelled a significant financial misstep.
A Costly Aviation Contract
In 2020, the WA Police entered into a lease for a Dassault Falcon 900LX jet, a high-end, long-range aircraft. The contract was signed with National Jet Express, a company later acquired by Alliance Airlines. The jet was to be used for official travel, including transporting the police commissioner and other senior officials, as well as for emergency evacuations from remote areas.
However, the aircraft was used far less than anticipated. According to reports, it flew only 71 hours in the 2022-23 financial year, a fraction of the expected usage. Despite the low utilisation, the state government was locked into paying millions under the lease terms. The original five-year deal was worth approximately $27 million.
The Financial Fallout for Taxpayers
The situation escalated when the government decided to terminate the lease early. To exit the contract, the state had to pay a substantial settlement. This, combined with the already sunk costs of the underused lease, has created a massive potential loss.
Official documents indicate the total financial hit could exceed $10 million. This figure includes the termination costs and the difference between the lease payments made and the value derived from the aircraft. The revelation has sparked anger among taxpayers and political opponents, who question the due diligence and financial management behind the deal.
Shadow Police Minister Peter Collier described the situation as a "scandalous waste of taxpayers' money." He criticised the government for entering into such an expensive contract without a clear, ongoing need for the aircraft, especially when commercial flight options were available for many of the routes.
Government Response and Ongoing Scrutiny
In response to the controversy, a WA Police spokesperson stated that the lease was initially entered into for "operational requirements," including the need for secure and flexible travel during the COVID-19 pandemic. They emphasised that the decision to terminate was made to reduce costs once the specific operational need diminished.
The state government has defended its actions, stating it acted to minimise further losses by ending the agreement. However, the Auditor General for Western Australia is now examining the lease. This independent audit will assess the procurement process, the management of the contract, and the overall value for money achieved, with findings expected to be made public later this year.
This incident raises serious questions about the procurement of expensive assets by government agencies. It highlights the risks of long-term lease agreements for highly specialised equipment when demand is uncertain. The $10 million potential loss serves as a stark reminder of the accountability required when spending public funds.
