Updated February 22, 2018 17:06:22

Photo: Minister Mick Gentleman said the report cleared the Government of wrongdoing. (ABC News: Tamara Penniket)

The ACT Government failed to be open or transparent in its dealings with the construction union and the Tradies Club, and as a result likely paid the organisations too much for land, an auditor-general's report has found.

Controversy surrounding a deal to swap land in Dickson between the ACT Government, the CFMEU, and the closely linked Tradies Club led to a failed no-confidence vote on Chief Minister Andrew Barr's leadership last year.

The Liberal Opposition accused the Government of a "corruption of process" over the deal, where the Government purchased the land on which the CFMEU's headquarters were located, and the Tradies Club bought a car park in the Dickson town centre from the Government.

The ACT Auditor-General Maxine Cooper today released her examination of the deal, and found it was deficient in transparency, and may have seen taxpayers lose as much as $2.6 million.

"There are indications that the outcome the directorate negotiated with the tradies does not represent value for money," she said in her report.

"There is a high risk [the directorate] has relinquished considerable financial value to the Canberra Tradesmen's Union Club.

Dr Cooper's report suggested there was a high risk the deal had breached the Planning and Development Act, after the Government agreed to several concessions requested by the Tradies Club.

The issue arose because the concessions meant the deal deviated significantly from what was initially tendered, meaning it could be viewed as a direct sale rather than a tender.

A direct sale would have required different approvals, which were not sought.

However ACT Planning and Development Minister Mick Gentleman said the report cleared the Government of wrongdoing.

"After an extensive audit into a land transaction in Dickson, the Auditor-General has ruled that she found no evidence of wrong-doing on the part of any ACT Government ministers or ACT Government officials," he said.

"This report puts the matter to bed."

The Government has responded to concerns about the controversy by reviewing its record keeping practices.

"The ACT Government has previously acknowledged some poor record keeping practices and decision making by the former Land Development Agency," Mr Gentleman said.

Topics: urban-development-and-planning, community-and-society, government-and-politics, dickson-2602, canberra-2600, act, australia

First posted February 22, 2018 16:49:35