KUALA LUMPUR – The cancelled 2026 Commonwealth Games have incurred a staggering AU$589 million (RM1.75 billion) for Victoria in Australia, as disclosed by the state’s auditor-general (A-G), calling the project a “waste of taxpayer money” with “no discernible benefit”.
The A-G report found the squandering of taxpayer money could have been prevented had government agencies worked together to give “frank and full advice” to the government before it decided to host the Games.
An investigation into the Victorian government’s abrupt Games cancellation last year also found that the cited AU$6.9-billion cost blowout was “overstated”.
Tabled in parliament today, the report criticised the business case for the event, prepared by the Jobs, Skills, Industry and Regions Department, adding that it was inadequate to support an informed decision regarding the costs and benefits of hosting.
Asked about the cost blowout, Victoria Premier Jacinta Allan pointed to the responses from the Premier and Cabinet Department (DPC) and the Treasury and Finance Department, which disagreed with the A-G’s findings.
She said no party could provide an “accurate total cost” due to ongoing risks.
“The AU$6.9-billion figure was the upper estimate of the costs that they anticipated would be needed to deliver the Games.
“Today confirms that the government made the right decision to not proceed with a 12-day sporting event because the costs were far exceeding any benefit.”
Allan said she would speak to the secretary of the DPC about the issues and recommendations outlined in the report.
The A-G said the cost of the cancellation, due to be held across five regional locations, was considerable given Victoria’s rising debt levels.
“This waste of taxpayer money on an event that will not happen is significant,” the report said.
Opposition spokesperson for tourism, sports and events, Sam Groth, said the report showed the Commonwealth Games were a “cruel hoax to win votes in regional Victoria”.
In July 2023, former Victorian premier Daniel Andrews’ government announced the shock cancellation of the games, citing cost overruns from the initial estimate of AU$2.6 billion to between AU$6 billion and AU$7 billion.
This was reported to be significantly higher than the initial estimate of AU$2.6 billion.
Previously, the government revealed it had agreed to pay Commonwealth Games bodies AU$380 million in compensation, with Andrews describing it as the “best outcome” the state could get. – March 20, 2024