Shadow Treasurer Rob Lucas said today the Chief Executive of Renewal SA (RSA) John Hanlon had revealed massive multimillion dollar losses and financial write-downs on key Government development projects.
Mr Hanlon told the Legislative Council Budget and Finance Committee that RSA had lost $153 million last year following losses of $123 million in 14/15 and $39 million in 13/14.
Mr Hanlon confirmed that last year RSA had a total write-down of their assets of $142.5m comprising:
Tonsley project - $53.7m
Playford project - $51.2m
Bowden project - $17.4m
Woodville West project - $5.5m
Other projects - $14.4m
In fact, the value of the major Tonsley project redevelopment had been written down by almost 30% of the original $188m cost of the project.
“The Weatherill Government massively overestimated the revenue to be achieved by this project and over this three-year period revenue is expected to be about $30 million instead of in excess of $60 million,” said Mr Lucas.
“Total debt for RSA resulting from these losses and also the transfer of assets from TAFE SA is now expected to be doubled to about $980 million.
“Sadly after the Gillman financial disaster this is yet another example of the financial mismanagement and incompetence of the Weatherill Government in managing government projects and taxpayers’ money.