Fed: Govt attacks Audit office report into property sales

AAP General News (Australia)
08-01-2001
Fed: Govt attacks Audit office report into property sales

CANBERRA, Aug 1 AAP - An independent report has criticised key aspects of the government's
property sales program, saying more could be done to protect taxpayers' interests.

But the Auditor-General's report has been rejected by the Department of Finance and
Administration which has refused to implement any of the report's seven recommendations.

The report, by the Australian National Audit Office (ANAO), examined the Commonwealth
Estate Property Sales Program which raised $983 million from the sale of 56 properties
in the three years to April 2001.

It said the department viewed its role as implementing "a property divestment program
endorsed by ministers and that it was not charged with the role of protecting the overall
interest of the Commonwealth".

This prompted the ANAO to highlight several areas for improvement, including that the
department review the success fees paid to advisers on current market valuations for assets.

It also said the allocation to outside advisers of responsibility for lease negotiations
and sale management, where success fees were calculated on the total proceeds from sale,
ought to be reviewed.

The department should also review all contracts with outside advisers to ensure contract
commitments were fully documented and effectively managed, it said.

It should also develop a way to assess sale and leaseback transactions to ensure the
financial interests of the commonwealth were protected.

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KEYWORD: PROPERTY

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