CITB spent $47,000 on a lavish dinner and taxpayers footed the bill, leaked audit shows
A leaked report reveals taxpayers footed the huge bill for a State Government board’s dinner party – it details what cost so much but does not explain all of it.
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Taxpayers funded an extravagant State Government board dinner party costing almost $47,000 for just 110 people, the chief auditor has found.
A leaked Auditor-General’s report criticises the Construction Industry Training Board for the significant spending on a 25th anniversary party in October 2018, which was held without preparation of a proper business case.
The interim report, a copy of which has been obtained by The Advertiser, found no documentary evidence the board had considered the dinner’s business objectives or whether the expenditure was reasonable.
It also criticised its lax credit card rules over alcohol spending.
The board has been the centre of controversy over its members.
In his report, handed to the board and other senior government officials in recent weeks, Andrew Richardson found the organisation did not “document its assessment” around the $46,744 dinner – a total cost of $425 per attendee.
The 10-page report, marked “for official use only”, detailed costs including $8360 for food for 110 people at $76 a head and a four-hour “premium” drinks package costing $6600 at $60 per person at the CBD Published Arthouse on October 12.
A further $20,930 in public money was spent hiring tables, chairs and audio visual equipment while entertainment consisting of a jazz trio and a DJ cost $1940. Skills and Industry Minister David Pisoni was invited to speak at the event and attended.
It is unclear how a further $8914 was spent. The state’s public spending watchdog criticised the significant cost. It also cited the risk exposure from the board’s lack of due diligence.
“The board is unable to demonstrate that before incurring the expenditure, it had determined (it) was reasonably incurred in the performance of its functions,” the report found.
Ministers have sought to reform the organisation amid a political row over those appointed to its board, comprising union, vocation and education officials as well as successful industry leaders. Taxpayers fund it through a construction industry training fund levy on every building contract over $40,000, paid for either by homeowners or builders.
It also receives government funding to help support, attract, train and retain building and construction workers.
In responses to The Advertiser’s inquiries, Mr Pisoni said an overhaul was needed.
“As the minister … I have modernised the CITB to not only focus the board on to its core business of construction trade skills training, but also to better reflect the … government’s values and community expectations” he said.
“The excesses identified by the Auditor-General certainly suggest this … reform was long overdue.”
The board’s current $18,574-a-year chairman, former construction boss Peter Kennedy, said his organisation had tightened its rules since the party, which was hosted by a previous leadership team.
“We are certainly mindful of any expenditure that we do,” he said. “We don’t collect money to spend on entertainment.” The previous chairwoman, former Labor MP Gay Thompson defended the decision to host the party.
“It was a decision made after careful consideration of the fact that the board thought it was necessary to publicise ourselves a bit more, develop close contacts to industry and acknowledge … the people who had put in a lot of voluntary time and effort over many years,” she said.
The dinner’s organiser, from Ginger Ninja Events Pty Ltd, declined to comment on payments but said she “charged a professional consultancy fee as per industry standards, based on an overall event budget that is provided and set by the client”.
The final Auditor General’s report is due to be tabled in State Parliament this week.