Investigation into Labor’s deal to buy nine emergency diesel generators

A SPECIAL investigator appointed by the State Government will examine the full cost to taxpayers of buying emergency diesel generators, and if the deal should have been done.

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A SPECIAL investigator appointed by the State Government will examine the cost to taxpayers of buying emergency diesel generators, and if the deal should have been done.

The Advertiser can reveal Attorney-General Vickie Chapman has appointed Mark Livesey QC to examine the purchase, which was finalised before the election under a $432 million budget.

In November, former premier Jay Weatherill publicly penned the deal to buy nine emergency diesel generators, in a bid to avoid further blackouts and load-shedding ahead of the March state election.

Diesel generators at the old Holden factory at Elizabeth. Picture: APR Energy

He did so despite stating they could have been used under short-term lease.

Expert reports have indicated SA was at significant blackout risk over the past summer due to a heavy reliance on intermittent wind power.

However, they also modelled a declining risk in coming years due to major market changes and investment in baseload and batteries. The emergency diesel generators were not used during the past summer.

Mr Livesey has been asked to report back to the Government by the end of June.

Ms Chapman said the Government would keep the diesel generators as back-up for next summer, but left open all options after that as the investigator probes the contract.

“Labor’s procurement of nine diesel generators was shrouded in secrecy and uncertainty,” she said.

Mr Livesey will examine if “all procurement policies and guidelines were followed in exercising the lease and purchase option” and the full “financial exposure” for state taxpayers.