'Many unanswered questions': Committee members say ACT rural land deals should be referred to integrity commission

The referral was recommended by the Liberal members of the public accounts committee but Labor members rejected a referral to the ACT's anti-corruption watchdog.

This followed an ACT Legislative Assembly inquiry which examined the $43 million acquisition of nine rural properties in west Canberra by the LDA between 2014 to 2017.

The LDA was previously responsible for delivering ACT's development program but was split into two entities - the Suburban Land Agency and City Renewal Authority - three years ago.

In one deal, the LDA had paid $7 million for a property, known as Milapuru, despite it being valued for $4 million. In another, the LDA supported the subdivision of a block, known as Fairvale, after it had previously intended to purchase it in full.

The LDA purchased the blocks after board members voiced alarms the territory could run out of greenfield land by 2031, this was despite a lack of evidence land on the western edge was suitable.

The inquiry was spurred by a scathing audit report in 2018 that found many of the deals had failed the agency's tests for land acquisition.

Committee chair Vicki Dunne tabled the report to the assembly and was particularly critical of the conduct of the LDA. She said there were "many unanswered questions".

"What happened under the land development agency was dodgy," she said.

"Some people may say there had been corruption involved."

A report with the committees findings and recommendations was presented to the ACT Legislative Assembly on Thursday morning.

The committee's 149-page report found the LDA had not followed established planning policies when acquiring blocks and the agency had proceeded with the acquisition without the authority of cabinet.

Framework required the LDA to determine a link between the acquisitions and relevant planning documents or policies. The LDA was unable to do this because an investigation into future development on the western edge, planned in the 2012 planning strategy, had not been undertaken.

As well, the report found the LDA was not familiar with the legislation it needed to comply with and did not make "reasonable efforts" to be informed of it.

The committee handed down six recommendations, five were unanimously supported.

It recommended legislation be introduced that would oblige the boards of territory authorities to comply with relevant legislation and that advisory documentation should be created to assist the boards of territory authorities to meet obligations.

Another recommendation was agency responsibilities should be divided. This would mean the need for future land would be determined by one statutory body and another agency would be responsible for the release and sale of territory land.

Labor backbenchers and committee members Bec Cody and Tara Cheyne did not support a recommendation the land deals should be referred to the ACT Integrity Commission.

But Mrs Dunne told the assembly she would send a letter to the Integrity Commission regardless.

"The committee doesn't have the investigatory powers that it needs to delve into the fine detail and that is why we have created another integrity arm, the Integrity Commission," she said.

"Notwithstanding an unanimous recommendation, I did make the point to the committee members... irrespective of whether the letter is signed off by the chair of the public accounts committee or Vicki Dunne, the member for Ginninderra, there will be a letter going to the Integrity Commission referring this report."

Mrs Dunne also accused the Labor members of changing their minds at the "last minute". This was adamantly denied by Ms Cheyne, in her address to assembly on the report.

"It was not a last minute flip-flop or anything like that, it was something we rarely discussed because we said we would keep coming back to it and indeed there was some consideration given to it," she said.

"Ultimately, the government members did not come to a position where they felt this was a recommendation this could be agreed to."

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It is the second land deal where Liberal members of the public accounts committee recommended a referral to the ACT Integrity Commission. The other was the 2014 Dickson land swap.

A finding was also rejected by the Labor committee members.

Liberal committee members put forward a finding that Chief Minister Andrew Barr, who was the minister responsible for the LDA at the time, was involved on two occasions in the approval of the land acquisitions. But the committee had no evidence on whether Mr Barr considered the LDA's acquisitions consistent with ACT government policy.

Mrs Dunne and Deputy opposition leader Nicole Lawder also criticised Labor committee members of back-flipping on support for the finding after it had been amended. Again, this was denied by Ms Cheyne.

"I never agreed with the finding," Ms Cheyne said.

"It is not something there is any evidence for and absence of evidence is not evidence... I do find this a really strange finding and one that has no basis.

"Yes, the finding was amended by the amendments weren't put forward by me, they were put forward by the chair to get to a point where we might be all able to agree."

The report also found Colliers International ACT had a "considerable degree of access" to the LDA. The real estate agency had advised the LDA on the purchase of the blocks and the LDA followed the advice "unreservedly", the report said.