The cost to taxpayers of scrapping Melbourne's East West Link road project has topped $1.1 billion, Victoria's auditor-general has found.
Key points:
- Auditor-general says decision to sign contract for East West Link based on flawed advice
- Report says key decisions driven by overriding sense of urgency before state election
- Report says costs incurred by the state had few tangible benefit for taxpayers
In a scathing report tabled in Parliament, Dr Peter Frost condemned both sides of politics for wasting public money and criticised the state's public servants for sometimes failing to provide frank and fearless advice.
He said the former Napthine government's decision to sign the contract so close to the last state election was based on flawed advice.
"The advice provided to the then-government was disproportionately aimed at achieving contract execution prior to the 2014 state election rather than being in the best interests of the project or use of taxpayers' money," he said.
The acting auditor-general also found shortfalls in terminating the contract, with the state incurring costs in excess of $1.1 billion "with little tangible benefit for taxpayers".
The bill will be partially offset by the sale of properties acquired for the project, worth an estimated $320 million.
The total cost of the termination settlement will be $642 million, despite Premier Daniel Andrews' election pledge that the contract could be ripped up at no cost because it was not worth the paper it was written on.
The East West Connect consortium was contracted to build the 18-kilometre road connecting the Eastern Freeway at Hoddle Street to CityLink, the Port of Melbourne and on to the Western Ring Road.
But the auditor-general said key decisions were driven by an overriding sense of urgency to sign the contract before last November's election, even though the project was being legally challenged.
"Signing the contract in these circumstances was imprudent and exposed the state to significant cost and risk," the report said.