TAHE inquiry follows ‘scathing’ report

Jack Gramenz | February 10, 2022

A NSW parliamentary inquiry into the controversial Transport Asset Holding Entity is set to resume, with the new secretary of the treasury department to be questioned after a “scathing” report from the auditor-general.

Treasury secretary Paul Grimes will front the public accountability committee’s inquiry into TAHE on Thursday, along with several other high-ranking department staff.

Dr Grimes is in the middle of his second week in the position, but the public service medal recipient has extensive experience in the sector, including high level roles in Treasury departments of other states and territories.

He’ll be followed by Transport secretary Rob Sharp, TAHE chair Bruce Morgan and TAHE CEO Benedicte Colin.

Auditor-General Margaret Crawford will also appear.

Ms Crawford’s report into the state’s finances was released on Wednesday, following a delay in signing off on the accounts due to “significant uncertainties about TAHE”.

Treasury “presented late, unsophisticated, and inaccurate forecasts to the Audit Office, all of which sought to support the desired outcome of higher projected returns”.

Three different versions of estimated returns from Treasury contained “errors, omissions and/or poor logic”, none of which were “able to demonstrate that a realistic rate of return would be derived from the (general government sector’s) investment in TAHE”, the report notes.

The opposition and Greens both labelled its findings “scathing”.

Committee chair David Shoebridge said it “delivered a ruthlessly clinical assessment” and it was essential Thursday’s hearing proceed so the committee “can put the Audit Office’s damning conclusions to Treasury and Transport officials”.

Premier Dominic Perrottet defended the entity again on Wednesday, saying it was “in line with the approach taken” in Queensland and Victoria.

Dr Grimes’ predecessor, Michael Pratt, told the committee’s last hearing in December TAHE “was created to pursue government policy on micro economic reform”.

He also defended claims of “bullying” brought against him by former KPMG partner Brendan Lyon, who previously told the committee he was pressured to change a report that showed the budget would be about $10 billion worse off than claimed.

Mr Pratt said Mr Lyon’s team had been engaged by Transport, not Treasury, then used Treasury modelling that should not have been used in the way it had been.

Plus, Mr Pratt said Mr Lyon was a consultant, not an accountant, so he was “totally discredited”.

In Wednesday’s report, Ms Crawford raised concern there was an “undue reliance” on external consultants, giving rise to the risk that “agencies shop for opinions from multiple experts in order to receive advice that matches the outcome being sought”.