The Corruption and Crime Commission tabled a report in State Parliament today warning of serious misconduct and corruption risks when good governance is lacking, usual procedures aren’t followed, and when consultants act as public servants.
The report details Project Stella Orion - a multi-stage housing development in the City of Cockburn. Stage 1 of the development was successfully completed by private interests.
The Housing Authority became involved in stage 2 which was successful. To continue its involvement the Housing Authority did something unusual. Instead of entering into a joint venture arrangement, it bought shares in a private company named Goldmaster Enterprises Pty Ltd, the beneficial owner of land in Success, City of Cockburn.
The investment was a disaster and the antithesis of good governance. The Commission estimates the Department of Communities (the successor to the Housing Authority) has incurred a loss of at least $30 million.
The Commission has not formed an opinion of serious misconduct in relation to any of the public officers involved – they commenced the project in good faith to support government policy and to provide social and affordable housing. However, the project progressed in a manner that has exposed Western Australia to corruption risks, and tens of millions of dollars in losses.