Lawyers were engaged to provide advice on Victoria scrapping the Commonwealth Games more than a month before Cabinet was told

The state government is facing claims it misled Victorians as it emerges ex-Premier Daniel Andrews hid the announcement from his cabinet colleagues for a month.

Former premier Daniel Andrews kept his cabinet, including Commonwealth Games Minister Jacinta Allan, in the dark while he initiated the process of cancelling the event.

The Victorian government confirmed on Wednesday that lawyers from top legal firm Arnold Bloch Leibler were engaged to start providing advice on Victoria potentially scrapping the event on the afternoon of June 14 – more than a month before Cabinet was told and the cancellation made public on July 18.

Ms Allan, who then led the Commonwealth Games preparation portfolio, on Wednesday refused to confirm when she first learned the lawyers, who cost taxpayers $1.26m for their work, had been brought in to handle the cancellation.

She said she only became aware later on because Daniel Andrews was “handling” it.

“I don’t have the advice on the exact date as that was handled at the time by, within, the Department of Premier and Cabinet,” she said.

Daniel Andrews kept his cabinet in the dark while he initiated the process of cancelling the event. Picture: Luis Enrique Ascui

“In terms of the date, the handling of those legal arrangements were being handled by the then premier.”

Ms Allan’s team later said she was made aware of the decision to engage lawyers on June 14.

“Often when you’re weighing options, making decisions, that does include legal advice,” Ms Allan said.

One day before the lawyers were brought in on June 13, Ms Allan appeared to have no knowledge of a looming cancellation, having told the Public Accounts and Estimates Committee (PAEC) that she was confident the regional event could be delivered.

Opposition leader John ­Pesutto said the government needed to come clean on all the details of the cancellation.

He noted the Andrews government was advertising for Commonwealth Games roles and negotiating tenders in the days leading up to the cancellation, despite weeks of discussions with lawyers.

He said it was “very convenient” that Premier Allan only learnt the day after her evidence to PAEC on the June 13 that lawyers were being engaged.

“She was the co-pilot with Premier Andrews at the time, she was involved in every major decision, she was a senior member of the government,” he said. 

“For her not to know that the need for lawyers was being discussed and briefings were being provided to her by the Premier is something I’m yet to be convinced of.”

It comes as documents handed to an upper house ­inquiry probing the axing of the games revealed huge cost blowouts were known in early 2023.

On February 15, the Games Organising Committee made a request for an additional $722 million in funding in addition to the original $1.047b.

Another document revealed the increasing amount of taxpayer funds that have been wasted, on top of the $380m deal to exit the contract.

Development Victoria racked up a bill of $21.6m for consultations on the proposed Athletes Village, despite an allocated budget of just $1.023b.

Almost $6m was spent on civil engineering designs, $1.9m on cultural heritage management and $1.1m on architectural services.

A further $10 million was spent on external consultancies including Ernst & Young who were paid $54,346 for hosting advice.

KPMG, PwC and Sayers Advisory Group – set up by high-flying businessman and close personal friend of Mr Andrews, Luke Sayers – were also among the groups awarded contracts for early planning projects.

In August, government employees working on the games who lost their jobs after the cancellation received termination payouts of $546,536.

The parliamentary probe into the debacle officially kicks of on Monday, with witnesses including Department of Premier and Cabinet secretary Jeremi Moule, former chief executive officer, Office of the Commonwealth Games Allen Garner and chief executive of the organising committee ­Jeroen Weimar.

Development Victoria spent $21m on consultations

The taxpayer bill for the cancelled Commonwealth Games continues to grow, with revelations at least $21m was paid to consultants for early works.

The figure was revealed in a submission to the upper house inquiry probing the cancellation of the 2026 event.

It shows Development Victoria racked up a bill of $21.6m for consultations on the proposed Athletes Village despite an allocated budget of just $1.023b.

Works included site assessments, engagement with traditional owners, local councils and the community and the release of tenders for civil contractors.

Almost $6m was spent on civil engineering designs, $1.9m on cultural heritage management and $1.1m on architectural services.

Another $19m was spent on consultations for the delivery of major competition venues which will still go ahead.

Opposition Leader John Pesutto has demanded Jacinta Allan reveal all costs associated with the scrapped event.

Mr Pesutto has demanded the Premier reveal all costs associated with the scrapped event. Picture: Getty

“”This is another $21 million torched by the Labor Government for an event that never happened,” he said.

“They had a budget of $1 million but it blew out to $21 million because Labor simply can’t manage money.

“Jacinta Allan must come clean with Victorians about exactly how much money was wasted on the Commonwealth Games.”

Andrews hired top law firm ahead of Comm Games axing

Daniel Andrews appears to have steamrolled the decision to cancel the Commonwealth Games, keeping key ministers in the dark as lawyers were engaged.

New documents tabled in state parliament revealed legal firm Arnold Bloch Leibler was secretly contracted in June 2023, up to a month before the former premier, Daniel Andrews, called a snap cabinet meeting and delivered the shock news to the Victorian public on July 18, that the games would be cancelled.

Over several weeks, the top lawyers were paid $1.26m to negotiate the state’s controversial exit from the contract.

But Jacinta Allan, who led the Commonwealth Games preparation portfolio, on Wednesday refused to confirm when she first learnt lawyers had been brought in to handle the cancellation of the major event.

The Premier, who was pressed on whether she knew lawyers were being introduced in June on Wednesday, said she was unaware of exactly what date because Daniel Andrews was “handling” it.

“I don’t have the advice on the exact date as that was handled at the time by, within, the Department of Premier and Cabinet,” she said.

“In terms of the date, the handling of those legal arrangements were being handled by the then premier.”

Ms Allan, however, said she was aware lawyers were being engaged “as tender processes materialised” in the lead up to the announcement.

Arnold Bloch Leibler was contracted by the Andrews government in June. Picture: Andrew Henshaw

“Yes, I was aware that lawyers were being engaged because that was consistent with what we said at the time of the announcement that as the costs were as the costs were materialising … we had gone from having estimates about the costs of the games to actuals,” she said.

“When you have to make a decision to weigh the options … often when you’re weighing making decisions that does include legal advice.”

On June 13, Ms Allan told the Public Accounts and Estimates Committee (Public Accounts and Estimates Committee) she was confident the regional event would be delivered.

“The games are in 1008 days. In terms of the time that is needed to be taken to deliver these games, I am confident,” she had said.

“The team is already doing significant planning work with, again, the local community to ensure how we move people – not just to Ballarat, there are five host cities that we have to move people around – and we are confident that we can do that.”

“It is going to be one of the biggest logistical challenges of the running of the games, and I am confident we can do it.”

On Wednesday, Ms Allan said she was not aware whether lawyers were engaged at the time.

“I stand by everything I said at PAEC,” she said.

Former minister for commonwealth games Legacy Harriet Shing said she was also not at the table when the decision to engage lawyers occurred.

She said she was made aware lawyers were on board only days prior to the official cancellation.

New Victorian premier Jacinta Allan was grilled about the Commonwealth Games cancellation. Picture: David Caird

“As we worked toward the announcement and the days prior to the announcement, I became aware that expert advice was being sought in relation to the Commonwealth Games contract,” Ms Shing said.

“In the days prior to the announcement, I was aware that legal advice was being sought,” Ms Shing said.

Senior Minister Danny Pearson said along with other ministers he first became aware of the Games’ cancellation in the days leading up to the announcement.

Mr Pearson defended the government’s decision to engage lawyers a month before announcing they were pulling the pin, and said it was done to “ensure that taxpayers funds are saved”.

“That’s precisely what the government did,” he said.

Mr Pearson said it is “entirely appropriate” for the government to engage legal counsel and rejected that the timeline raised questions about when the government first knew the event was in strife.

“You want to make sure that you’re always getting the best advice that you can and that you’re making sure that you’re looking at all your options as a state in order to protect the taxpayer and to save taxpayer funds,” she said.

“It’s entirely appropriate.

“Cabinet made its decision in the days leading up to that announcement. In order to do that, you need to make sure that you’ve got a good strong evidentiary basis on which you make that decision.”

Opposition leader John Pesutto, who said the exact date had been left out on purpose, accused Ms Allan of misleading parliament and PAEC.

He called on the Premier to “come clean”.

“We learned today that contrary to what Jacinta Allan has told this parliament and the Victorian people, she obviously knew at the time she told everybody the Commonwealth Games was costed at $2.6b, she obviously knew with lawyers engaged to get Victoria out of the Commonwealth Games that that was not in fact true,” he said.

“We’ll be pursuing the serious issue of whether Jacinta Allan misled the Victorian parliament, when in PAEC, when in question time and in various other statements, she asserted that the Commonwealth Games at $2.6 billion was locked in.”

In August, all non-government MPs in the Upper House backed an opposition motion to establish a parliamentary inquiry into the event’s cancellation. Upper House inquiries can call the Premier and Deputy Premier, who sit in the lower house, but they can’t be compelled to give evidence.

Originally published as Lawyers were engaged to provide advice on Victoria scrapping the Commonwealth Games more than a month before Cabinet was told