Berejiklian faulted on $16bn sale of Ausgrid

The $16bn sale of Ausgrid by the NSW government did not meet ICAC guidelines relating to “direct negotiations” with a tenderer.

NSW Premier Gladys Berejiklian. Picture: Tracey Nearmy

The $16 billion sale of Ausgrid by then premier Mike Baird and his treasurer Gladys Berejiklian did not meet ICAC guidelines relating to “direct negotiations” with a tender, an Auditor-General’s report has found.

The NSW government had failed in complying with its rules in accepting the “unsolicited proposal” on the sale in terms of the keeping of minutes and in ­establishing the bid was “unique”.

In 2016, IFM Investors and Australian­­Super bought a maj­ority share of the electricity supplier for more than $16bn on a long-term lease through an unsolicited bid.

This came after then federal treasurer Scott Morrison, using foreign ownership rules, blocked potential Chinese buyers from acquiring the asset.

The Auditor-General found yesterday that the state government had not complied with rules and could have achieved better value for money had it opened the sale up to other ­bidders.

The report said the NSW government was unable to provide minutes of meetings relating to the sale, including a meeting ­between the Treasury secretary at the time, Rob Whitfield, and the bidders during which the secretary suggested a price that the bidder complied with later that day.

“The State Records Act 1998 requires important records of matters such as this transaction to be kept properly,” the ­Auditor-General found.

“DPC and NSW Treasury did not provide audit with comprehensive records of some key ­interactions with the proponent. DPC and NSW Treasury advise that they could not locate ­minutes of the meetings with the proponent on 14 September, 2016, and 22 September, 2016.

“No records were provided to show the Treasury secretary had prior authorisation to disclose a specific price at the meeting of 14 September, 2016, or the state’s endorsement of that price.

“No bargaining strategy or other records were provided to show why this specific price was settled upon as appropriate to suggest at this meeting and for the state to accept the next day.”

Ms Berejiklian’s office referred the matter to Treasurer Dominic Perrottet, who said: “The NSW government ­acknowledges today’s performance audit report, but disagrees with a number of the findings.”