In 2009, then sports minister Andrew Barr pushed for the waiver of nearly $300,000 owed on the Brumbies' Griffith site, on the basis of a suite of benefits that never eventuated.
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It appears Mr Barr or his directorate "overlooked" a directive from then chief minister Jon Stanhope that the debt should only be waived after clear demonstration of the community and economic benefits and a business case.
At the same time Mr Barr was seeking a waiver of stamp duty and land rent debt for the Brumbies the club was negotiating the sale of the land to a private property developer.
The Brumbies sale of their former Griffith headquarters to Graham Potts' Amalgamated Property Group has been the subject of controversy for years, this year culminating in a bitter split between former Brumbies boss Michael Jones and the club's board after Mr Jones ordered an audit into the transactions. That audit has never been released, but some details have emerged.
Last week the government finally released documents after a Freedom of Information request on the decision to remove the concessional status of the lease and waive money owing in 2009.
In August 2008 Mr Barr wrote to Mr Stanhope, who was treasurer, wanting to waive stamp duty and land rent debt, telling him the Brumbies wanted to refurbish their headquarters.
Mr Stanhope sought Treasury advice and was told he should not agree without a business case and detailed analysis of community and economic benefits.
"The advice from Minister Barr does not set out any of the information that would assist Treasury to undertake an assessment of whether the waivers would be in the best interest of the territory," official Neil Bulless told Mr Stanhope, recommending he give only in-principle agreement. "Treasury could not recommend a waiver ... in the absence of more information."
Mr Stanhope delivered that message to Mr Barr in September 2008, telling him he looked forward to seeing the business case and analysis of benefits.
The information was never provided. Six months later the Brumbies' plans for the site were well advanced, Treasury wrote urgently to the new treasurer, Katy Gallagher.
"Treasury has been advised that, to date, no action has been undertaken with regard to informing the Brumbies of these conditions," official Glenn Bain told Ms Gallagher, urging her to write to Mr Barr telling him the waivers depended on "an appropriate business case that can clearly demonstrate and commit to the community and economic benefits".
"Treasury is concerned that the Brumbies may have already been advised of an agreement to waive the debts without being advised that final agreement is pending receipt and acceptance of the appropriate business case and undertakings."
Ms Gallagher wrote to Mr Barr reminding him about the conditions. Mr Barr wrote back on March 24, 2009, telling Ms Gallagher, "It would appear that the conditions associated with this in-principle waiver have never clearly been articulated to the Brumbies."
He said that, in the meantime, the Brumbies had lost a sponsor and the government had agreed to a support package for the club. As part of that separate package the Brumbies had provided a business cases and allowed Treasury to examine the business extensively, Mr Barr said.
The Brumbies "cooperation in this more recent matter" qualified the club to have met Mr Stanhope's conditions, he said, urging Ms Gallagher to approve the debt waiver.
The letter sparked activity in Treasury to sort out the mess.
On May 25, 2009, David Lamont met government officials on the issue. Mr Lamont is a former Labor deputy chief minister who negotiated for the Brumbies on the Griffith land deal.
A bureaucrat in charge of leasing, Dulce Lander, wrote to Mr Lamont on May 25 following the meeting. She set out the debt, at $292,000, and updated him on the status of the lease (which was complicated by the Brumbies' negotiations to buy the land from a bowling club). "You may wish to forward this information to Amalgamated Property Group," Ms Lander told Mr Lamont.
The email suggests the government knew of the involvement of the private developer.
Mr Lamont replied, "I understand that the govt has agreed to 'excuse' the amount and has advised of this intention as a matter of principle. Treasury have been working on the process and our collective contact today has galvanised further action."
On July 3, 2009, Brumbies chief executive Andrew Fagan outlined the benefits, promising a sports medicine and physiotherapy practice onsite for use by the public, a premium fitness centre, also available to locals, a 118-place childcare centre and more.
Treasury wrote to Ms Gallagher again at the end of July, telling her, "Treasury considers that it was a fundamental requirement of the in-principle agreement that the Brumbies would need to provide some indication of the expected broader community and economic benefits."
But it recommended she waive the debt and said, "As the Brumbies are still in contract negotiations with developers and have yet to receive final planning approvals it was agreed that a detailed business case ... would not be required."
Marked "urgent", Treasury asked for Ms Gallagher to sign off by August 4. On August 7 another urgent missive came from Treasury, this time seeking her same-day agreement to the waiver. The wording of the second minute was different to the first in that it made no mention of the failure to tell the Brumbies about the conditions set by Mr Stanhope.
Instead, it said, "Treasury considered that the Brumbies have provided sufficient information about the associated economic and community benefits."
Ms Gallagher signed the waiver on August 7, 2009.
On August 6, 2009, the Brumbies were reported to have received a formal valuation to sell the site, a decision made in 2008. The price was settled in October 2009.
Asked abut his failure to tell the Brumbies about Mr Stanhope's conditions, a spokesperson for Mr Barr said on Friday that had been the responsibility of the directorate.
"The Brumbies did provide Treasury with information on their plans for the Griffith headquarters at the time – thus allowing Treasury to advise the then treasurer to waive the debts," he said.
"The government was provided with advice by treasury that the Brumbies were planning on undertaking a significant development on the site which included a gym, a childcare facility, a health centre and medical facilities. Treasury advised the then treasurer to waive the debts ...
"When the opportunity arose to partner with the University of Canberra, the Brumbies decided to change their long-term plans."
Mr Fagan, now in Adelaide, declined to comment. Mr Lamont also declined to comment, saying questions should be directed to the Brumbies. The Brumbies were unable to answer questions on Friday.
Mr Stanhope said he recalled supporting the debt waiver in principle, but had no memory of Ms Gallagher's eventual decision to grant the waiver, which he believed would have been done under her ministerial discretion without reference to cabinet. He had accepted Treasury's advice and the rigorous process it proposed, he said.
