The Victorian auditor-general has released a scathing report into the operations and governance of Major Projects Victoria (MPV), saying the body does not operate effectively, efficiently or economically.

The report found poor governance standards and a lack of accountability mean it is unlikely MPV is making the best use of public resources.

It found the unit is not meeting legislative requirements in record keeping and its management of internal contracts increases the risk of fraud.

Read more: ABC News October 10, 2012.

Extracts from the report

Missing contracts: MPV has engaged 13 contractors using 15 contracts. As part of this audit, it was only able to locate 10 documented contracts—it has no record of the other five contracts….Together, these five missing contracts have an estimated value of around $1 million.

Contract variations: MPV regularly varies contracts for both time and cost. Of the current contracts, six have a total of 14 variations. There is very little documentation to support the reason for the variations. Further, MPV were unable to explain the basis for extensions to contract length or revised payment terms.

Contract payments: There is a difference between the expected cost of some contracts and the actual cost, based on recorded payments. For the two contractors with missing open-ended contracts, it is not possible to determine what they should be paid.

Read the full report: Managing Major Projects

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