NSW Treasury Secretary Michael Pratt to retire

The NSW government is embarking on a search to replace Treasury Secretary Michael Pratt as the state endures pandemic fallout and a growing budget scandal.

NSW Treasury Secretary Michael Pratt apparently informed the government of his desire to retire about three weeks ago. Picture: Richard Dobson

The NSW government is embarking on a search to replace Treasury Secretary Michael Pratt as the state endures pandemic fallout and a growing budget scandal.

Mr Pratt, appointed Treasury Secretary in 2017, apparently informed the government of his desire to retire about three weeks ago.

Contenders to replace him include Martin Hoffman, chief executive officer of the National Disability Insurance Scheme, who is understood to have held discussions with NSW Treasurer Matt Kean.

Mr Hoffman did not respond to a request for comment and Mr Kean declined to comment. The successful candidate is expected to be announced as early as next week, with Mr Pratt understood to have expressed a willingness to remain in his role until March.

Praised for shepherding the state through the Covid-19 economic crisis, Mr Pratt became a fixture during crisis meetings and a trusted aide to Premier Dominic Perrottet during his time as treasurer.

NSW Treasurer Matt Kean. Picture: Justin Lloyd

More recently, Treasury officials became mired in controversy over the government’s $40bn Transport Asset Holding Entity. This included allegations of bullying made by a former KMPG consultant, who claimed to have been pressured not to criticise the Treasury calculations underpinning the state-owned rail corporation.

Mr Pratt denied the allegations in an all-staff memo. Mr Perrottet publicly supported Mr Pratt, telling parliament last month they had known each other in a professional capacity for almost a decade, and worked especially closely during the pandemic.

“He has demonstrated himself to be a person of high integrity, and I‘ve never known him to be anything but courteous, professional, and genuinely kind to every single person he deals with,” Mr Perrottet told parliament.

Mr Kean also praised Mr Pratt in parliament but emphasised a “zero-tolerance approach” to “poor workplace behaviour”.

The Australian contacted Mr Perrottet for comment about the upheaval among NSW Treasury leadership. With regard to his retirement and the search for his replacement, Mr Pratt said: “I look forward to continuing to serve the people of New South Wales in my current role.”

As one of the state’s highest-ranking bureaucrats, Mr Pratt’s impending departure comes as the state’s financial accounts remain in doubt due to “significant accounting issues” identified by NSW Auditor-General Margaret Crawford.

Treasury officials have been at odds with Ms Crawford for months over the government’s state-owned rail corporation, TAHE, which was backed by Mr Pratt and other Treasury officials, but also Mr Perrottet as treasurer.

Ms Crawford has repeatedly raised concerns about TAHE’s accounting discrepancies, which amount to billions of dollars, and recently told officials that she may qualify the state’s accounts — a drastic measure — unless the matter is rectified.

The timing remains delicate for the government: Mr Kean is due to deliver the state’s mid-year economic update on Thursday and Mr Pratt is scheduled to appear before a NSW parliamentary inquiry, along with other Treasury officials, to answer questions about TAHE that morning.

Labor’s shadow treasury spokesman Daniel Mookhey said Mr Pratt’s departure was an indictment on the Perrottet government.

“Dominic Perrottet and his government are not, and never have been, Australia’s top public finance managers,” Mr Mookhey said.

“No other Australian government finds itself consumed by an epic budget scandal, with their Treasury engulfed by leadership turmoil some months after more than 200,000 people lost their jobs.”

Mr Mookhey said financial markets remain aghast at the TAHE controversy, along with the rise in gross debt and “exotic schemes” being used to cover up the “true state of the NSW budget”.

“Matt Kean needs to either give his full support to the Treasury’s leadership, or he needs to find leaders he actually trusts. NSW top economic officials need to stop worrying about their own jobs and start worrying about the jobs of the people of NSW.”