Victoria rocked by $22 million bombshell over Commonwealth Games scandal

Explosive questions have emerged about Victoria’s Commonwealth Games disaster with suggestions the timeline doesn’t add up.

The Commonwealth Games disaster has taken another turn with revelations lawyers were hired to kill the event weeks before then-premier Dan Andrews dropped the bombshell news.

The Victorian government is reeling after new documents submitted to the upper house inquiry into the fiasco exposed explosive timeline details.

Plans for the 2026 games to be held in regional Victoria were scrapped in July after Andrews revealed estimated costs had blown out to nearly $7bn. The Andrews Government had budgeted for $2.6 billion.

The controversial decision saw Victoria’s government pay out the Commonwealth Games Federation $380 million in compensation after canning the event.

Now it has been revealed lawyers were hired to negotiate the cost of Victoria’s exit as host city in June — up to six weeks before Andrews’ announcement.

As first reported by the ABC, the documents show the legal team from Melbourne firm Arnold Bloch Leiber was paid more than $1.2 million.

It comes as The Herald Sun first reported the new documents show various consultancy groups were paid more than $21.6 million for event planning operations.

New premier Jacinta Allan, who held the office of Minister for Commonwealth Games Delivery at the time, told the Public Accounts and Estimates Committee (PAEC) on June 13 she was confident the Games would go ahead.

Former Premier Daniel Andrews. Picture: NCA NewsWire / Luis Enrique Ascui.

Just days or weeks later the documents show the legal team was hired to rip the contract up.

The exact date the lawyers were hired has not been confirmed and Allan said she was not aware if lawyers had already been contacted when she made her comments to the PAEC.

Allan on Wednesday told reporters as she walked into state parliament: “I don’t have the advice on the exact date as that was a matter that was handled at the time by the department of premier and cabinet at the time.

“But what I can say is that when it became clear that the costs to run a 12-day sporting event were going to exceed $6 billion dollars, that just became too much and it became clear in the weeks leading up to the announcement as the then-premier said at the time.”

Allan has been heavily criticised over the comments.

Former tennis player turned state MP Sam Groth posted on Twitter: “We were told the decision was made just days prior, but lawyers were engaged to cancel the Commonwealth Games up to 6 weeks prior to the announcement, at a cost of more than $1.26m”.

Melbourne talk-back radio king Neill Mitchell said the timeline raises serious questions.

Responding to Allan’s comments on Wednesday, the 3AW host said: “Slippery. Slippery at the very least.

“She hasn’t got the exact date. At what date did she discover we were likely to pull out of the Commonwealth Games? She said on June 13, ‘Everything’s terrific’. Some time in the next couple of weeks, if not before hand, the government has briefed the lawyers to go and get them out of there. And she didn’t know it was about to happen? She didn’t know what had happened. She needs to give us full details.”

Kardinia Park in Geelong was going to host the closing ceremony. Victoria 2026 Commonwealth Games.

Opposition Leader John Pesutto said on Wednesday Allan must “come clean”.

“This is another $21 million torched by the Labor Government for an event that never happened,” he said.

“They had a budget of $1 million but it blew out to $21 million because Labor simply can’t manage money.

“Jacinta Allan must come clean with Victorians about exactly how much money was wasted on the Commonwealth Games.”

It is not the first time questions have been raised about the timeline of the government’s decision-making around the exact date the costs blow-out was realised.

The Senate inquiry into Australia’s preparedness to host the Commonwealth, Olympic and Paralympic Games last month tabled its interim report in which it accused the Victorian government of “actively” working to muzzle witnesses from engaging in the inquiry.

“Key questions remain unanswered, including the repeated revision of cost estimates, and contradictory evidence and statements about whether the Victorian Government first approached Commonwealth Games organising bodies or vice versa,” the interim report stated.

Nationals Senator and inquiry chair Matt Canavan said at the time the Victorian government had sent “threatening letters” to private citizens and organisations who consulted on the Games preventing them from giving evidence.

Commonwealth Games Australia chief executive officer Craig Phillips in July accused the Andrews Government of exaggerating the revised costings and ignoring advice to save money by hosting more events in Melbourne and less events in regional areas.

Originally published as Victoria rocked by $22 million bombshell over Commonwealth Games scandal