Appointment of Commissioner for the commission of inquiry into the leasing by the Commonwealth of accommodation for the Australian National Audit Office

Administered by Department of the Prime Minister and Cabinet

Legislation au C2004Q00966 In force Prerogative Instrument

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COMMONWEALTH OF AUSTRALIA

ELIZABETH THE SECOND, by the Grace of God Queen of Australia and Her other Realms and Territories, Head of the Commonwealth:

TO:

THE HONOURABLE TREVOR REES MORLING

GREETING:

WHEREAS it is desired to have an inquiry into matters relating to the leasing by the Commonwealth of accommodation for the Australian National Audit Office in Centenary House at Barton in the Australian Capital Territory:

NOW THEREFORE We do by these Our Letters Patent issued in Our name by Our Governor-General of the Commonwealth of Australia on the advice of the Federal Executive Council and in pursuance of the Constitution of the Commonwealth of Australia, the Royal Commissions Act 1902 and other enabling powers, appoint you to be a Commissioner to inquire into:

(a) the role of the Australian National Audit Office (the ANAO), the Australian Property Group (the APG), the Australian Valuation Office (the AVO), the Australian Estate Manager, the Department of Finance and any other agency considered relevant, in the lease of Centenary House to the Commonwealth, and in particular, addressing the following matters:

(i) the appropriateness of tender and selection processes followed in identifying suitable accommodation for the ANAO, with specific reference to the selection of Centenary House;

(ii) whether the processes followed by the ANAO, the APG, the AVO and the landlord, individually and collectively, resulted at that time, or at any time might result, in any party to the lease for Centenary House obtaining unfair and/or above market commercial advantage from any aspect of the arrangement;

(iii) whether the instructions of ANAO to the APG, as regards the accommodation options, enabled the APG to test a sufficiently wide market so as to enable the APG to pursue a truly competitive lease arrangement;

(iv) whether all the Commonwealth agencies concerned acted in accordance with the Government policies applying at the time;

(v) whether the APG, as the Commonwealth’s property agent, fulfilled its responsibility to the ANAO, including in relation to the establishment of the lease terms;

(vi) whether, taking into account the nature and effect of the resource agreement between the ANAO and the Department of Finance in relation to the financing of the lease, appropriate steps were taken by the ANAO and the Department to ensure that the ANAO could fund the lease commitments on Centenary House and meet its other obligations;

(vii) whether all of the Commonwealth agencies involved acted in the best interests of the Commonwealth, including so as to achieve value for money;

(viii) the longer term funding implications for the ANAO of the Centenary House lease;

(ix) the options available for action in relation to the funding of the Centenary House lease; and

(x) any other matters considered relevant to the public interest in the matter; and

(b) whether any changes to existing arrangements are necessary or desirable to avoid similar occurrences in the future:

AND We require you as expeditiously as practicable to make your inquiry and, not later than 9 August 1994, to furnish to Our Governor-General of the Commonwealth of Australia the report of the results of your inquiries and such recommendations as you consider appropriate.

 

WITNESS the Honourable William George Hayden, Companion of the Order of Australia, Governor-General of the Commonwealth of Australia on 16 May 1994.

Governor-General

By His Excellency’s Command

Minister for Finance

for the Prime Minister

Overview

The Commonwealth of Australia enacted the Letters Patent in 1994 to establish a Royal Commission to investigate the leasing of accommodation for the Australian National Audit Office (ANAO) in Centenary House, Barton, Australian Capital Territory. This prerogative instrument was issued under the authority of the Royal Commissions Act 1902 and other enabling powers, by the Governor-General on the advice of the Federal Executive Council. The primary objective of this inquiry was to assess the appropriateness and transparency of the processes involved in leasing Centenary House to the ANAO, with a focus on ensuring fairness, compliance with government policies, and value for money, as well as exploring long-term funding implications and potential systemic improvements. The Royal Commission was tasked with examining the roles and actions of various agencies, including the ANAO, the Australian Property Group, the Australian Valuation Office, and the Australian Estate Manager, in the leasing process. Specific areas of interest included the selection process of Centenary House, the potential for commercial advantage, the adequacy of market testing, and adherence to government policies. The Commission was also required to provide recommendations on any necessary changes to avoid similar issues in the future, thereby ensuring the integrity and efficiency of future government leasing arrangements.

Scope and Application

The Letters Patent issued by the Governor-General on behalf of the Queen of Australia establish a Royal Commission to inquire into the leasing of accommodation for the Australian National Audit Office (ANAO) in Centenary House at Barton in the Australian Capital Territory. The Commission's scope includes examining the roles of the ANAO, Australian Property Group (APG), Australian Valuation Office (AVO), Australian Estate Manager, the Department of Finance, and any other relevant agencies involved in the lease of Centenary House. The inquiry focuses on the appropriateness of the tender and selection processes, the potential for unfair commercial advantages, compliance with government policies, the adequacy of market testing, the financial implications of the lease, and the best interests of the Commonwealth, including value for money. The Commission is required to report its findings and recommendations by 9 August 1994. The application of this Act is limited geographically to the lease of Centenary House and the agencies involved in the leasing process, without any stated exclusions or thresholds. The Act extends its reach through the appointment of the Commissioner and the requirement for a comprehensive report.

Key Provisions

The primary operative sections of this legislation, C2004Q00966, appoint a Commissioner to conduct an inquiry into the leasing of Centenary House by the Commonwealth for the Australian National Audit Office (ANAO). The Commissioner is tasked with examining various aspects of the lease, including the appropriateness of the tender and selection processes, the potential for unfair advantages, compliance with government policies, and the financial implications of the lease (section (a)(i)-(x)). The Commissioner must report the findings and any recommendations to the Governor-General by 9 August 1994. The Act imposes several obligations on the Commissioner. Firstly, the Commissioner must conduct the inquiry expeditiously and thoroughly, ensuring that all relevant matters are examined and considered. This includes gathering evidence, interviewing relevant parties, and analysing the processes and decisions that led to the lease of Centenary House. The Commissioner must also ensure that the inquiry is fair and unbiased, taking into account the public interest and any potential conflicts of interest. Additionally, the Commissioner is required to submit a comprehensive report to the Governor-General by the specified deadline, detailing the findings and any recommendations for changes to existing arrangements. Failure to comply with the provisions of this Act can result in various consequences. Although specific offences and penalties are not detailed in the text, breaches of the Act could potentially lead to legal action. The Commissioner may face disciplinary measures if found to have acted outside the scope of their appointment or if they fail to submit the required report within the stipulated timeframe. Furthermore, if the inquiry reveals significant issues such as fraud, corruption, or serious mismanagement, it could lead to further investigations or legal proceedings against the involved parties. The civil and criminal consequences for breaches of this Act could be severe, depending on the nature and extent of the non-compliance. For instance, if the Commissioner is found to have acted negligently or failed to conduct a thorough inquiry, they could face legal repercussions, including fines or other penalties as determined by a court. Similarly, if the lease process is found to have been improperly conducted, leading to financial loss or unfair advantages, the responsible parties could be held liable for damages, and criminal charges could be pursued if the breaches amount to fraud or other serious offences. The exact penalties would depend on the specifics of each case and the relevant laws governing such matters.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.