Investigation into scrapped Comm Games blames govt’s ‘bureaucratic incompetence’
The investigation into Victoria pulling out of hosting the 2026 Commonwealth Games has slammed the state government for its “bureaucratic incompetence”.
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Bureaucratic incompetence and a lack of due diligence are set to be blamed for Victoria’s scratched 2026 Commonwealth Games in a scathing new report.
The Herald Sun can reveal a Victorian Auditor General Office investigation into the failed event, which is expected to cost taxpayers at least $600m, is near completion with a draft report released to persons of interest.
Sources familiar with the report said it blamed “bureaucratic incompetence” a “failure to remain impartial” and “lack of due diligence” for the ultimate decision to cancel the showcase event.
The Victorian government spectacularly cancelled the 12-day sporting event last July, claiming the event had blown out from $2.6bn to nearly $7bn.
Despite warnings to government about the rising cost of running the event Premier Jacinta Allan, who at the time was the minister responsible for delivering the Games, had weeks earlier told parliament the government was making “tremendous progress”.
A day earlier Ms Allan had been warned planning was billions of dollars over budget and that significant changes to the proposed event would have to be made.
It was later revaled the business case used by the Andrews Government to sign up to host the Commonwealth Games was so rushed it did not include a proper analysis of “key elements of Games planning”.
Sources familiar with the bombshell VAGO report said it would likely name specific people.
However much of the blame was expected to fall back on departments more than individual ministers.
The Auditor-General report looked at the “residual” costs of securing, planning and terminating the Games contract, which includes the $380m legal settlements with the global organising body the Commonwealth Games Federation.
It also assessed the quality of relevant advice to the government.
At the time he announced the cancellation of the 2026 event, then-Premier Daniel Andrews said he did not expect the total bill of wasted taxpayer money — including sunk costs for local organisers — to balloon beyond $600m.
But he said he could not provide a figure at that time, because the total bill had not “bottomed out”.
Insiders say the report will be critical of advice to government provided by the bureaucracy, but also looks at the impact of “shifting goal posts” created by government decision-making in the lead up to the 2022 state election.
One said while there would be valid criticisms, it was likely the government would be quick to blame bureaucrats for bungles.
“The State will absolutely throw them under the bus,” one said.
At the time of Mr Andrews’s shock announcement to ditch his own contract, he said “some of the most senior bureaucrats in the state, supported by external consultants, did their very best work… to try and estimate the cost of delivering these Games. Those estimates were wrong”.
The report will hone in on financial advice provided to the government, including on transport and security costs that were massively underestimated.
Government figures released last year showed transport costs to run the Games across five sites blew out from $110m to more than $300m, while security costs soared from about $200m to $500m.
This was a significant portion of the up to $4bn in likely overruns the government blamed for its decision to cut up the contract.
Shadow Minister for Tourism, Sport and Events, Sam Groth, said Victorians deserved full transparency over the axed event.
“The Commonwealth Games was a $600 million lie perpetrated on Victorians by Jacinta Allan,” he said.
“The Premier needs to front the Commonwealth Games inquiry and be honest with Victorians about her role in this debacle.
“It’s not good enough to just blame public servants and consultants. The Premier needs to take responsibility and admit her own failures.”
The parliamentary committee investigating the cancellation of the Games will this week head to regional Victoria to hear evidence from affected councils, businesses, tourism bodies, sports clubs and accommodation providers.
Both Mr Andrews and Ms Allan declined invitations to appear before the parliamentary inquiry.
A government spokesperson said: “we await the outcome of the VAGO report into the 2026 Commonwealth Games and will have more to say when it is received.”
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