Chief Minister Andrew Barr says he has been told "categorically" that no government officials are implicated in a detailed KPMG report at the centre of a civil war at Super Rugby club the ACT Brumbies.
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The Brumbies saga is set to take a dramatic hit with members of the ACT and Southern NSW Rugby Union ready to file a civil action in the Federal Court to recover alleged missing money from the sale of the club's Griffith headquarters.
Brumbies chief executive Michael Jones and the club's board are at odds and waiting for Justice Richard Refshauge to make a ruling in the ACT Supreme Court on an injunction filed by Mr Jones after he was stood down.
Mr Barr was forced to answer questions relating to the government's involvement in the Brumbies' sale of its Griffith base. Mr Jones referred the KPMG report to the Australian Federal Police, with the blessing of the ARU and Brumbies board, and the investigation is ongoing.
The $11.375 million sale of Griffith and subsequent move to the University of Canberra, as well as sponsorship deals and an Alliance Agreement, are believed to be at the centre of the KPMG report.
Mr Barr said he "explicitly" sought clarification from Brumbies chairman Robert Kennedy whether any government officials were named in the report, which was commissioned by the Australian Rugby Union integrity unit.
Mr Jones and Mr Kennedy met Mr Barr and government officials before lodging the KPMG report with police.
When asked in question time in the Legislative Assembly on Tuesday if the government had a copy of the KPMG report or if government officials were adversely named, Mr Barr said: "I explicitly asked the chairman and the Brumbies when they came to see me in relation to the report was the ACT government in any way involved, and they categorically said no."
Asked if any ACT government had a copy of the KPMG report, which has not been made public, Mr Barr said "no".
"They presented to me an assurance that … the ACT government would not be required to provide any financial assistance to the organisation, as the organisation's financial situation was robust and that they had the full backing of the Australian Rugby Union."
Canberra club rugby presidents have called an extraordinary general meeting for April 21 to seek answers from the board over Mr Jones being stood down and why the profits have diminished after the sale of Griffith.
A community rugby trust fund was supposed to be set up with a chunk of the proceeds to fund the Canberra clubs.
The value of the Griffith land and the price it was sold for is also believed to be a major part of the KPMG report.
Mr Barr met Mr Kennedy and ARU boss Bill Pulver on the same day the Brumbies board decided to stand down Mr Jones in the wake of an interview on ABC Grandstand.
Mr Barr said he was assured the Brumbies' finances were solid and that they would not need help. The government is a sponsor of the Brumbies.
Mr Barr said he did not believe the ACT government would have given the club any formal advice on the relocation.
Mr Jones has been liaising with Brumbies stakeholders and some are considering legal action to recover damages as a result of lost revenue from the sale of the Griffith headquarters because of a failure in fiduciary duties.
Some club presidents have seen the KPMG report while others have opted not to look at a copy until after Justice Refshauge's decision and having a chance to speak with the board.
It is also understood the Brumbies still owe Mr Jones bonuses for KPIs in his contract that have been deferred to help the club's cash-flow position.
