Key Macquarie Point contracts ‘missing’ audit report finds.

A damning audit has found contracts signed by the Macquarie Point Development Corporation could not be located — including one that went more than ten times over budget.

KEY contracts signed by the Macquarie Point Development Corporation could not be located — including one that went more than ten times over budget, an audit has found.

KPMG conducted an audit of procurement and contracting at Macquarie Point since July 2017 — a period coinciding with the tenure of former CEO Mary Massina.

Ms Massina resigned in June to allow “a fresh set of eyes will help take the development through the next phase”.

The KPMG report released on Tuesday, found that key procurement documents could not be found and Treasurer’s Instructions about procurement had not been complied with.

Ms Massina is not accused of any wrongdoing in the report.

“I note that the KPMG audit and grievance process raised during my time at Macquarie Point have both been subject to arm’s length investigation and both have found no wrong doing on my behalf,” she said.

Among the findings was that signed copies of three contracts could not be found at all, there was three instances of variations with little or no supporting documentation, and two other instances of variation were unexplained.

Former Macquarie Point Corporation CEO Mary Massina. Picture: Nikki Davis-Jones

“Internal Audit noted that several key documents were unable to be provided and there was a notable absence of stored documentation to support evidence of decision making,” it said.

One of the contracts — a consultancy for “District Scheme Architecture” purportedly for $40,000 — blew out to $459,720.

The report recommended Macquarie Point management consider terminating or suspending that contract.

It noted that the government-owned developer had experienced significant staff turnover, a change in office location and a change in IT systems.

“With this backdrop it wouldn’t be unexpected for there to be some challenges in regarding complete and accurate record keeping,” it said.

But it noted that there was no evidence of “deliberate actions” to circumvent rules.

The report recommended that management investigate the missing contracts and improve record keeping of decision making.

Minister for State Development, Construction and Housing Guy Barnett said the government was “committed to ensuring the highest level of compliance and governance across the public service and its Statutory Authorities and Government Business Enterprises”.

“The advice to me from the Chair is that while the review found some anomalies relating to record keeping and two instances of noncompliance with Treasurer’s Instructions, based on the information and evidence provided, the report found no evidence of deliberate actions taken to circumvent Treasurer’s Instructions or other Macquarie Point Development Corporation requirements,” he said in a statement.

“I’m looking forward to being kept informed by the Board of the Corporation’s management actions to address the review’s findings and to continuing to progress the Corporation’s important work program.”

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