Auditor-General's Report

In reply to Mr PISONI (Unley) (2 November 2016).

The Hon. S.C. MULLIGHAN (Lee—Minister for Transport and Infrastructure, Minister for Housing and Urban Development): I have been advised:

1. In most cases for government, property leases and memorandums of understanding relate to the government as the tenant leasing space from private landlords. There is only one current lease dispute with a landlord. The potential value of this dispute is $9,000.

In the property industry, lease documents can remain unexecuted for periods after the lease commencement. This can be due to factors such as legal preparation and negotiation, delays by parties in seeking execution by relevant delegates (particularly where there may be multiple landlord signatures required), or where specific details, such as lease renewals where rental determination may be required, need to be established before those details are included in the lease. Where significant delays or risks are identified, caveats are placed on titles to protect the relevant interests.

2. The total value of the unexplained credit balances as on page 303 of the Auditor-General's Report totalled $160,000, from 29 debtors.

3. The Auditor General identified irregularities in administrative processes not necessarily irregular transactions or purchases.