Comm Games inquiry finds more could’ve been done to prep for event

Victoria’s failed 2026 Commonwealth Games was never assessed under strict high-risk guidelines despite its multibillion-dollar price tag, an inquiry has revealed.

Victoria’s failed 2026 Commonwealth Games was never assessed under strict high-risk guidelines despite its multibillion-dollar price tag, it has been revealed.

As the Paris Olympics enters its final stages, the Victorian parliament’s inquiry into the failed Commonwealth Games bid resumed on Friday with bureaucrats admitting more could have been done to prepare for the event.

Documents published by the inquiry revealed the event was never assessed under the Department of Treasury and Finance’s High Value High Risk (HVHR) guidelines which would have subjected it to extra scrutiny and ongoing involvement by both the Treasurer and the department.

Instead the event’s estimated cost blew out from an original $2.6bn to almost $7bn by the time the government cancelled the event in July 2023.

Premier Daniel Andrews and Tourism Minister Martin Pakula at Mars Stadium, Ballarat announce Victoria's successful bid for the 2026 Commonwealth Games.

The guidelines require the Department of Treasury and Finance to impose greater scrutiny and approval processes for relevant projects.

But it told the inquiry they didn’t apply to the Commonwealth Games business case because it “primarily sought operating funding (as opposed to asset funding) to stage the Games, with a relatively smaller asset component including the village housing program, which was originally proposed to be privately financed rather than state budget funded.”

“For this reason, the March 2022 business case for the 2026 Commonwealth Games was not classified as a High Value High Risk (HVHR) asset project when submitted for consideration by the government and was not assessed under these guidelines,” the Department said in a written response made public on Friday.

Despite the response The Department of Jobs, Skills, Industry and Regions told the inquiry it had “broadly” used the HVHR guidelines in developing the business case.

Ana Delevska, an academic who appeared before the inquiry, slammed the business case for missing basic cost factor.s

“If a student submitted this as an assignment, missing these aspects, they would fail,” she said.

“It doesn’t take a genius to realise there were big omissions that should have really been taken into consideration because otherwise we wouldn’t be here today.”

In a damning report published in March, Victoria’s Auditor-General Andrew Greaves blamed a lack of due diligence and bureaucratic incompetence for the games debacle.

He called for a comprehensive review into why key agencies did not work together effectively to give frank, full and timely advice to the government.

The government has rejected calls for this review.

Senior Liberal MP David Davis says the the evidence reveals a ‘frightening and slapstick process’. Picture: Luis Enrique Ascui

In his review, Mr Greaves also cast doubt over government claims of a cost blowout to almost $7bn, saying the figure was overstated.

Instead Mr Greaves found costs had blown out to about $4.9bn.

“The original Games budget was unrealistically low, but the $6.9bn cost estimate the government publicly released when it withdrew from the Games was overstated,” he said.

Senior Liberal MP David Davis, who sits on the inquiry, said Friday’s evidence revealed a “frightening and slapstick process”.

“It’s cost the state hundreds of millions of dollars,” he said.

He accused former major events minister Martin Pakula, former premier Daniel Andrews and premier Jacinta Allan of being “in hiding” over their refusal to appear before the inquiry.

“What do they have to hide? Why won’t they come and give answers” he said.

The Auditor General has found the cancelled event cost Victoria $589m, including $150m in employee and operating costs shared between DJSIR and the Games organising committee.

A further $42m was incurred by Development Victoria for detailed planning and delivery cases for venues and villages.