The ACT government maintains some of the major issues highlighted in the Auditor-General's scathing report on the former Land Development Agency's rural land purchases have already been resolved.
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But it is still working on a number of less-controversial recommendations from the auditor's office regarding land management agreements and bushfire operations plans for some of the rural blocks the government bought in recent years.
The scathing audit released in June highlighted a raft of integrity issues and potential conflicts of interest in the dealings of LDA contractors, land bought at $3 million more than valuations of the block and a series of failings in the way the former agency managed its contractors.
It examined eight rural land purchases completed by the former agency in its final three years of operation, but the audit's scope did not extend to a number of more recent purchases the government has made of rural land instigated by the LDA but completed by its main successor agency.
The audit is one of three audits of the former LDA's dealings that are now being examined in a series of Legislative Assembly Public Accounts committee inquiries, which may also be referred to the proposed territory anti-corruption and integrity commission in future.
But the government's formal response to the audit, tabled in the ACT Legislative Assembly on Thursday, reiterates the government's previous position that the key issues that needed to be resolved had been, or were being addressed, through the axing of the LDA and its two new replacement land agencies mid-last year.
While the audit report noted those reforms and the creation of the territory's new Suburban Land Agency, it recommended government act to improve its contract management and record-keeping processes, among other issues, which the response says are being addressed.
But the audit also highlighted a lack of land management agreements in place for several key properties, urging the government to address the issues by the end of December this year, a deadline the government says it expects to meet.
While the government says the reforms have also addressed the audits key concerns about valuations and management of contractors, it seems that action has not extended to splitting up valuations work between multiple contractors - not a formal recommendation, but one highlighted in the audit report as presenting probity risks.
Key questions surrounding the planning directorate's decision to subdivide the Fairvale property the LDA originally intended to buy in full, to allow Knight Frank valuer Steve Flannery and his wife to buy part of the property remain, but may yet be answered in an Assembly inquiry underway into the audit.
The audit also exposed how the series of rural land purchases was originally proposed by LDA contractor Colliers International ACT, with the firm ultimately reaping almost $300,000 worth of work acting as agent on the subsequent purchases.
Despite the audit office finding it represented a potential conflict of interest that was not disclosed to the former agency's board, Colliers ACT chief Paul Powderly has previously rejected the claim out of hand.
On the bushfire operations plans, the government response said the SLA has reviewed its management of the key rural leases and has entered into, or started setting the proper licencing and subleasing arrangements, and will review all rural leases it holds to ensure they meet the requirements.
