Backers of failed East Werribee super city fight for compensation
The backers of a proposed $31 billion super city in East Werribee are continuing their fight to recoup almost $100 million already spent on the failed project.
Police & Courts
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Backers of a proposed $31 billion “super city” for the western suburbs are appealing against a court decision to deny them compensation for the dumped project.
The Australian Education City consortium was the preferred bidder to redevelop a huge state-owned site in East Werribee into a hi-tech university, industry and residential hub.
However, last July, the Andrews Government pulled the plug on the proposal amid concerns about its viability and planned level of Chinese investment.
AEC sued the government and certain ministers to recover at least $93 million already invested in the bidding process, but failed in a Supreme Court case.
AEC has now filed an appeal against the decision on eight grounds.
In a previously filed writ, AEC chairman Bill Zheng and chief executive John Tabart made a number of claims about the negotiation process right up to the government pulling the plug on the project.
On March 1, 2018, Department of Treasury and Finance secretary David Martine allegedly said “words to the effect” that the government had to make a decision soon and that then Finance Minister Robin Scott was “very keen”.
Two weeks later, Mr Martine met with consortium officials, saying a decision would be made as soon as possible and “it was in everyone’s interests ‘to get it sorted’”.
The writ said that on April 18, 2018, Mr Tabart got a phone call from then deputy secretary of the Department of Premier and Cabinet, Simon Phemister, who said the government was “a bit cranky with ourselves”, and that a former senior public servant from interstate had been brought in to give “fresh eyes” to the process.
The writ also revealed that Chinese firm XingCheng Investment Group had signed a $400 million investment intention deal with AEC subject to it getting the green light from government.
AEC claimed the government’s decision to dump the project was biased, lacked transparency, reasons and procedural fairness.
But the government had argued that no evidence of bias had been provided, and the decision was made by a committee of state Cabinet, and therefore could not be appealed in the courts.
It also said there had been an exchange of tender documents “that expressly reserved the state’s rights, including the right to discontinue the tender process at any time”.
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