FINAL REPORT OF
THE AUDITOR-GENERAL
ON THE
HINDMARSH SOCCER STADIUM
REDEVELOPMENT PROJECT
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Part 1
Key Findings and Recommendations
Why the Examination was Undertaken
Conduct of Examination
Scope of Examination
Legal
Administrative
Financial
Natural Justice and Procedural Fairness
Standard of Proof
Allegation that Documents were Shredded
CHAPTER 2 – OVERVIEW OF KEY FINDINGS AND ISSUES IN THIS REPORT
Introduction
A Note of Importance
Costs
Benefits
Policy Decisions
In a Nutshell What Went Wrong
Mr Ingerson
The South
Australian Soccer Federation
Mrs Hall
The Undermining of the Public Works Committee Process
Other Major Failures of Due Diligence
Inadequate
Feasibility and Cost Benefit Analysis
Cabinet
Submissions Inadequate Basis for Decision
Failure to Achieve Key Objective
Ownership and Management Issues
The Effect of the legal arrangements on Soccer Organisations
The Soccer
Federation
Adelaide City
West Adelaide
Mrs Hall’s Role as Ambassador for Soccer
The Various
Roles Held by Mrs Hall
Mrs Hall: A
Conflict of Interest and Duty
A General Comment by Way of Clarification
CHAPTER 3 – SUMMARY REPORT ON TERMS OF REFERENCE
Terms of Reference I and II
Initiation
and Approval
Public Works
Committee Process
Direction and
Control
Ownership and
Management
Term of Reference III(a)
Term of Reference III(b)
Purchase of
Hindmarsh Stadium Site
Soccer
Federation Agreement
Adelaide City
Agreement
Effect on the
Stage 1 Project Documents
Document for
Hosting Olympic Soccer Tournament
Term of Reference IV
Conflicts of
Interest
Appropriate
Processes
Overview
Project Management and Control
Compliance
Evaluation of
Public Sector Projects
Coordination
and Communication Between Ministers and Agencies
Agency Advice
Preparation
of Cabinet Submissions for Public Sector Projects
Public Works Committee Process
Contract Management
Ongoing Risk Assessment
Part 2
Chronology
CHAPTER 5 – INTRODUCTION TO PART 2
Overview
CHAPTER 6 - 1988 TO DECEMBER 1994
September 1988 - "A Major Facility Development"
April 1989 - Feasibility Study for Soccer: Hindmarsh v Gepps
Cross
August 1989 - $3.9 million Package
November 1989 – $6.2 million Estimate
March 1990 - Project Justification Report
May 1991 - Proposal for Partial Upgrade for 1993 World Youth
Championships
July 1993 – Abolition of the Department of Recreation and
Sport
August 1993 – Merger of Hindmarsh and Woodville
Councils
September 1993 - Sydney 2000 Olympics Win
November 1993 – SACON Abolition and Reconstitution
9 December 1993 – Mr Crafter’s Letter to Soccer
Federation
14 December 1993 - Change of Government
January 1994 - Proposal for Government to Take Over
Lease
February 1994 - Soccer Federation’s Submission to Minister
Oswald
February 1994 - SACON Preliminary Feasibility Estimate of
$30.75 million
March 1994 - Mr Ellis’ Review of Proposals to Upgrade
Hindmarsh
May 1994 - Cabinet Submission
May 1994 - Request for $6.7 million Grant
30 June 1994 – Establishment of the Department for Building
Management
October 1994 - FIFA Requirements as to Temporary
Facilities
30 January 1995 – SOCOG
Letter to the Premier of South Australia
February 1995 - Early Estimates of Cost of Hosting Olympic
Soccer
20 April 1995 – Budget Sub-Committee Approval
April 1995 - First Involvement of the Crown Solicitor’s
Office
28 April 1995 - Memorandum of Understanding with the Soccer
Federation
29 April 1995 – Memorandum of Understanding Between the
Federation and the NSL Clubs
1 May 1995 – Council of Clubs Authorisation of Soccer
Federation Loan
1 May 1995 - Cabinet Approval
18 May 1995 - Committees for Redevelopment Established
20 July 1995 - First Meeting of the Executive Committee
August 1995 - Soccer Federation Attempts to Increase Budget
1 September 1995 - Appointment of Department for Building
Management as Project Manager
4 September 1995 - Department for Building Management Project
Brief
20 September 1995 - Tender Process for Appointment of Primary
Consultant
30 October 1995 - Establishment of Services SA
8 November 1995 - Appointment of Woods Bagot
8 November 1995 - Woods Bagot Preliminary Design Work
Project
Definition
Assessment of
Future Development Options
Identification of Need for Land Acquisition
Financial
Examination
Identification of Preference to Redevelop Western Side
CHAPTER 8 - DECEMBER 1995 TO MAY 1996
Late 1995 - Appointment of Mrs Hall as Ambassador for
Soccer
22 December 1995 - Change of Minister for Recreation, Sport
and Racing
18 January 1996 - Woods Bagot’s First Project Report
22 January 1996 - FIFA Letter About Pitch Size
February 1996 - Establishment of Hindmarsh Stadium
Redevelopment Committee
22 February 1996 - Change of Title for Services SA
23 February 1996 - Soccer Federation Lease
February 1996 - 2000 Olympic Soccer Qualifying Tournament
February 1996 - Debt Servicing Costs During
Construction
6 March 1996 - Change from Eastern to Western Grandstand
8 March 1996 - Mr Scott Meets with SOCOG
18 March 1996 - Cabinet Approves Mrs Hall’s Appointment as
Parliamentary Secretary to
June 1996 - Public Works Committee Deliberations on Stage
1
Submission to
Public Works Committee
12 June 1996
Hearing before the Public Works Committee
June 1996 - Letter to Council
13 June 1996 - The Crown Solicitor’s Office Briefing on
Land Acquisition
24 June 1996 - The Department of Treasury and Finance
Analysis of the Funding Offers
25 June 1996 - Second Meeting of Executive Group
26 June 1996 - Estimates Committee
28 June 1996 - Pressure on the Crown Solicitor’s Office for
the Documents
July 1996 - Mr Scott’s Birmingham Trip
1 July 1996 - Final Ernst & Young Report
1 July 1996 - Financial Information from the Soccer
Federation
2 July 1996 - First Draft of Funding Deed
4 July 1996 - Second Draft of Funding Deed
5 July 1996 - Treasurer’s Briefing on Concerns Over Funding
Arrangements
8 July 1996 - Treasurer’s Agreement that Funding Shortfall
can be Met from the Sport and
CHAPTER 10 - AUGUST TO SEPTEMBER 1996
1 August 1996 - Circulation of Revised Funding Deed
2 August 1996 - Retainer of Woods Bagot for Stage 1 Design
Work
6 August 1996 - Value Management Study
8 August 1996 - Crown Solicitor’s Office Further Complaint
After Meeting with the
CHAPTER 11 - OCTOBER 1996 TO FEBRUARY 1997
3 October 1996 - Mr Scott’s Advice to Soccer Federation
about Loan Costs
4 October 1996 - SOCOG Reservations about Constrictions of
Hindmarsh Stadium Site
13 October 1996 - Launch of the Redevelopment
14 October 1996 - Execution of Funding Deed
15 October 1996 - Start of on Site Construction Works for
Stage 1
16 October 1996 - Selection of Practice Venues for Display to
SOCOG
23 October 1996 - Finalisation of Stage 1 Loan Agreement and
Deed of Guarantee
23 October 1996 - Executive Group Reassessment of Budget and
Work Scope
24 October 1996 - Minister Ingerson’s Tip Off
Instructions
to Woods Bagot
27 October 1996 - Reimbursement of $300,000 to the Soccer
Federation
28 October 1996 - Letting of Trade Packages for
Construction
29 October 1996 - Visit by SOCOG Delegation
Key
Issues
What the
SOCOG Representatives said about Hindmarsh Stadium’s Chances
What the
SOCOG Representatives said Needed to be Changed
What Minister
Ingerson said was Proposed by way of Further Development
29 and 30 October 1996 - Announcement of Canberra and
Melbourne Upgrades
6 November 1996 - Meeting of Bid Committee to Consider SOCOG
Visit
14 November 1996 - Further Funds Required for Stage 1
18 November 1996 - Cabinet Approval of Submission for Stage
2
20 November 1996 - Additional Commitment to SOCOG
28 November 1996 - Premier Olsen
12 December 1996 - Change of Minister for Recreation, Sport
and Racing
19 December 1996 - Renaming of the Office for Recreation,
Sport and Racing
19 December 1996 - SOCOG Grant of Olympic Soccer to
Adelaide
1 January 1997 - Formation of the City of Charles Sturt
7 January 1997 - Land Acquisition Impasse
8 January 1997 - Extension of National Portfolio Strategies’
Retainer
21 January 1997 - Ongoing Management Arrangements
22 January 1997 - Complaint by the NSL Clubs about Financial
Arrangements for Stage 1
28 January 1997 - Cabinet Approval of Revocation of
Appointments as Parliamentary
CHAPTER 12 - MARCH TO JUNE 1997
March 1997 - Study by the South Australian Centre for
Economic Studies
March 1997 - Increase in Structural Steel Cost for Stage 1
1 March 1997 - Mrs Hall’s Visit about Mr Ciccarello
3 March 1997- SOCOG Letter
7 March 1997 - Mr MacFarlane's fax to Mr Simmonds of SOCOG
12 March 1997 - Mr MacFarlane’s Discussions with
Queensland, Victoria and ACT
12 March 1997 - Stage 2 Formal Submission to Cabinet
17 March 1997 - Establishment of Olympic Task Force
17, 18 and 19 March 1997 - Initial Meetings of Task
Force
20 March 1997 - Checks on Conditions Precedent Stage 1
Documents
25 March 1997 - Briefing of Attorney- General on Stage 2
Cabinet Submission
25 March 1997 - SOCOG Meeting
27 March 1997 - Woods Bagot Update Compliance Matrix
17 April 1997 - Draft 2 of SOCOG Memorandum of
Understanding
14 April 1997 - Woods Bagot Letter about Speculative
Work
April 1997 - Extension of Options for Land Acquisition
1 May 1997 - Crown Solicitor’s Response to Interim Report
of Public Works Committee
9 May 1997 - Meeting with SOCOG
27 May 1997 - Agreement Between Soccer Federation and NSL
Clubs as to Funding of Fit
CHAPTER 13 - JULY TO NOVEMBER 1997
7 July 1997 - Cabinet Approval of Letter of Agreement with
SOCOG
8 July 1997 - Briefing by Woods Bagot of Minister for
Information and Contract Services
9 July 1997 - Fit Out Guarantee
14 July 1997 - Further Cabinet Consideration of Stage 2
Preparation
of Submission
Content of
the Submission
Cabinet
Resolution to Refer to Inter-Departmental Working Group
14 July 1997 - Meeting to Discuss Cabinet’s Concerns Over
Stage 2 Proposal
21 July 1997 - Cabinet Approval for Cabinet Committee and
Project Director for Stage 2
30 July 1997 - Public Works Committee Attention to Stage
2
5 August 1997 - Draft 4 of SOCOG Memorandum of
Understanding
6 August 1997 - Letter from Council about Stage 2
6 August 1997 - Stage 2 Scope and Budget Workshop
11 August 1997 - Draft 5 of SOCOG Memorandum of
Understanding
11 August 1997 - First Meeting of Hindmarsh Soccer Stadium
Cabinet Committee
15 August 1997 - Final SOCOG Memorandum of
Understanding
18 August 1997 - Cabinet Submission for Stage 2
25 August 1997 - Cabinet Approval of Further Increase in
Expenditure for Stage 1
2 September 1997 - Second Meeting of Hindmarsh Soccer Stadium
Cabinet Committee
4 September 1997 - Soccer Federation Business Plan
8 September 1997 - Cabinet Endorsement of Formal Submission
of Stage 2
10 September 1997 - SOCOG Memorandum of Understanding
Signed
17 September 1997 - Retainer of Woods Bagot for Stage 2
26 September 1997 - Fit Out Guarantee Deed
30 September 1997 - Draw Down of Stage 1 Loan
7 October 1997 - Amendment Deed and Fit Out Guarantee
Deed
13 October 1997 - Council Concerns about Tenure
20 October 1997 - Ministerial Rearrangement
23 October 1997 - Establishment of the Department of Industry
and Trade
23 October 1997 - Establishment of the Department of
Administrative and
CHAPTER 14 - DECEMBER 1997 TO SEPTEMBER 1998
6 December 1997 - Practical Completion of Stage 1
Works
17 December 1997 - Ministerial Rearrangement
January 1998 - Council Complaint about Use of Stadium for
Rugby
February 1998 - NSL Clubs Difficulties in Paying Levies
23 February 1998 - Cabinet Approval of Referral of Stage 2 to
Public Works Committee
25 February 1998 - Definition of Stage 2 Works
26 February 1998 - Submission to Public Works Committee of
Stage 2
4 March 1998 - Public Works Committee Hearings for Stage
2
6 March 1998 - Council Concerns about Ownership Issues
16 March 1998 - Third Meeting of Hindmarsh Soccer Stadium
Cabinet Committee
23 March 1998 - Mr Dixon’s Letter to the Public Works
Committee
March 1998 - Ms White’s FOI Request
1 April 1998 - Public Works Committee Request for Further
Information
2 April 1998 - Mr Ingerson’s Request to Mr Ciccarello for
Information about the Bid
22 April 1998 - Mr Ingerson’s Letter to Public Works
Committee about Stage 2
30 April 1998 - Public Works Committee Interim Report on
Stage 2
25 May 1998 - Mr Ingerson’s Response to Public Works
Committee Interim Report
25 May 1998 - Mr Kowalick’s Response to the Public Works
Committee Interim Report
16 June 1998 - The Public Works Committee Final Report on
Stage 2
19 June 1998 - Briefing of Attorney-General on Land Ownership
and Management Issues
24 June 1998 - Payment of Shortfall on 30 June 1998 Loan
Instalment
29 June 1998 - Council Complaint over Use of Stadium for
Rugby
21 July 1998 - Negotiations with Soccer Federation about
Ownership of the stadium
27 July 1998 - Bowling Club Relocation
31 July 1998 - Fourth Meeting of Hindmarsh Soccer Stadium
Cabinet Committee
3 August 1998 - Resignation of Mr Ingerson as Minister for
Industry, Trade and Tourism
13 August 1998 - Adelaide City’s Further Complaint about
the Cost of Playing at Hindmarsh
7 September 1998 - Adelaide City Proposal for Deferral of
Levies or Fixed Fee
10 September 1998 – Soccer Federation Match Costs Cap at
$13,000
15 September 1998 - Vacation of Bowling Club for Use as Site
Office
21 September 1998 - Cabinet Approval of Baulderstone
Hornibrook
29 September 1998 - Soccer Federation Proposal on
Levies
29 September 1998 - Construction Agreement for Stage 2
CHAPTER 15 - OCTOBER 1998 TO AUGUST 2000
October 1998 - Cessation of Payment of Levies
8 October 1998 - Ministerial Appointments of Mrs Hall and Mr
Evans
28 October 1998 - Minister Evans Request for Meeting to
Consider Increasing Levies
31 October 1998 - Auditor- General’s 1997/98 Annual
Report
5 November 1998 - Soccer Federation Submission Seeking Relief
from Levies
13 November 1998 - Fit Out Loan Repayment
27 November 1998 - Recognition that Government Not Able to
Assess Soccer’s
CHAPTER 16 - FROM SEPTEMBER 2000
6 September 2000 - Soccer Federation Request for Premier’s
Intervention
8 September 2000 - Revised Proposals for the Soccer
Federation
September 2000 - Deputy Premier Kerin’s Assumption of
Responsibility for
Part 3
Detailed Findings on the Terms of Reference
CHAPTER 17 – INTRODUCTION TO PART 3
Overview of Part 3
Term of
Reference I
Term of
Reference II
Term of
Reference III(a)
Term of
Reference III(b)
Term of
Reference IV
CHAPTER 18 - DUE DILIGENCE IN STAGES 1 AND 2
Overview
Scope of this Examination
Section 32 of
the Public Finance and Audit Act 1987
The Hindmarsh
Soccer Stadium (Auditor-General’s Report) Act 2001
The
"Project"
Efficiency
and Cost-Effectiveness
Definition of Due Diligence
Due Diligence
Generally
The Substance
of Due Diligence
Compliance
Benefits or Needs
Risks
Specific Requirements Applicable to Public Projects
Legislative
Requirements
Parliamentary Committees Act 1991
Public Finance and Audit Act 1987
Government
Internal Guidelines
Treasurer’s Instructions
Who Performs Government Due Diligence
Preface
Government
Advisory Agencies
The Crown Solicitor’s Office
The Department of Treasury and Finance
The Department of Premier and Cabinet
Access to
Other Expertise
DAIS
Resources External to the Government
The Process of Briefing Other Agencies
How this Examination has Applied the Definition of Due
Diligence
"Signed
Agreements for Construction" and "Commitment"
CHAPTER 19 – STAGE 1 PROJECT INITIATION AND APPROVAL
Overview
Feasibility Studies and Cost Benefit Analyses
Objectives of
the Redevelopment
Mandatory Identification of Objectives
Identification of Objectives as Part of a Feasibility Study
No Comprehensive Statement of Objectives Exists for Stage 1
Statements of Objectives in Cabinet Submissions
Summary of Objectives
Early
Feasibility Studies
No Reliance
Upon or Updating of Earlier Studies
Inadequate
Commissioning of Feasibility Studies
SACON Preliminary Feasibility Estimate
Woods Bagot Preliminary Design Work
Ernst & Young Report
Omissions
from Studies
The Fit Out
Guarantee
Previous Arrangements for Fit Out
Cabinet Submission for Fit Out Guarantee
Significance
of Policy Decision
Conclusion on
Inadequacy of Feasibility Studies
Cabinet Submissions Inadequate Basis for Cabinet
Decisions
Overview
Cabinet’s
Role Generally
Cabinet
Submissions
Submissions a Summary of Deliberations
Even-Handedness of Discussion
Realistic Set of Options
Inadequate Consultation with Central Agencies
Inadequate Content of April 1996 Submission
Inadequate Content of August 1996 Submission
Inadequacy of July 1997 Submission
Conclusion about Stage 1 Cabinet Submissions
Inadequate Definition of FIFA/SOCOG Requirements
Instructions
to Woods Bagot about FIFA Requirements
Failure to
Analyse Requirements Received from SOCOG
Omission of
Pitch Upgrade
CHAPTER 20 – PUBLIC WORKS COMMITTEE PROCESS FOR STAGE 1
Overview
Inadequate Information about FIFA/SOCOG Requirements Provided
to the Public
CHAPTER 21 - DIRECTION AND CONTROL OF STAGE 1
Overview
Committee Structure
Definition of
Committee Roles and Functions and Reporting Requirements
Committees Set Up Under Minister Oswald
Committees Set Up by Minister Ingerson
Inappropriate
Membership of Committees
Lack of
Control
Inadequate Application of Agency Advice
Advice Given
But Not Acted Upon
The Crown Solicitor’s Office Advice about the 1996 Treasurer’s
Guarantee
The Crown Solicitor's Office’s Advice about Negotiating Funding Deed
The Crown Solicitor's Office’s Advice about Content of August
Cabinet Submission
The Crown Solicitor's Office Advice about Ownership and Management
Inadequate
Instructions Given
April 1995 Memorandum of Understanding with the Soccer Federation
Preparation of the Funding Deed in 1996
Inadequate
Advice Given
Failure to Identify Legislative Requirements
Failure to Identify Non-Compliance with Internal Government Guidelines
Poor Advice about Ownership and Management Structures
Failure to Attend to Prudential Matters that had been Identified
Advice Not
Sought
April 1996 Cabinet Submission
No Advice Sought about Other Measures to Protect Achievement of the
CHAPTER 22 - FAILURE TO RESOLVE OWNERSHIP
AND MANAGEMENT FOR STAGE 1 Overview
Warnings that Ownership Critical to Protecting Public
Investment
Inadequate Protection Adopted
Ensuring that
the Council as Owner of the Land did not Prevent the stadium from
CHAPTER 23 – STAGE 2 PROJECT INITIATION AND APPROVAL
Overview
Feasibility Studies and Cost Benefit Analyses
Stated Approach of SACES Study
Limitations of Data Utilised in SACES Study
Exclusions from the Study
Criticism of the Study by the Department of Treasury and Finance
No Attempt to Update or Refine SACES Study in Light of Further Information
Woods Bagot Master Planning Process
The Future Need for an Enlarged Facility
The Cost of Keeping Open the Soccer Federation’s Options for Future
CHAPTER 24 – STAGE 2 PUBLIC WORKS COMMITTEE PROCESS
Overview
Inadequate Content of Original Submission
Overview
Funding Arrangements
The Council’s Contribution to the Funding Arrangements for the Project
SOCOG’s Requirements for the Upgrade
The Reasons for the Content of Stage 2
The Process Used for the Design of Stage 2
Arrangements for Ownership and Management
Conclusion about Submission to Public Works Committee
Failure to Provide Information about SOCOG
Interim Report
Cabinet Confidentiality
Conclusion on Inadequate Responses to Public Works Committee Reports
Parliamentary Resolution that the Public Works Committee Table Its Report
Conclusion on Parliamentary Resolution
CHAPTER 25 – DIRECTION AND CONTROL OF STAGE 2
Overview
Work Critical to Stage 2 was Undertaken through Stage 1 Structure
Excessive Access of the Soccer Federation to the Government’s Resources
Conclusion on the Soccer Federation’s Access to Government Resources
The Soccer Federation Role on the Bid Committee
Conclusion on Composition of Bid Committee
Project Management Structure
Deputy Premier Ingerson as Proponent Minister
Minister Evans as Responsible Minister
Conclusions on Project Management Structure
Inadequate Application of Agency Advice
Overview
Agencies Advice Disregarded
Inadequate Advice Given
CHAPTER 26 - FAILURE TO RESOLVE OWNERSHIP AND MANAGEMENT DURING STAGE 2
Overview
Ownership and Management Must be Resolved Before Commitment
Government Recognition of the Importance of the Ownership Issue
Nature of the Issues
March 1997 Cabinet Submission
July 1997 Cabinet Submission on SOCOG Letter of Agreement
July 1997 Cabinet Submission for Stage 2
Referral to Inter-Departmental Working Group
August 1997 Cabinet Submission
September 1997 Cabinet Submission
February 1998 Cabinet Submission
No Position Adopted Until Stadium Nearly Complete
No Proper Analysis of Legal Risks
No Proper Analysis of Financial or Economic Factors
Conclusion on Failure to Address Ownership and Management
CHAPTER 27 – UNDUE PRESSURE ON SPORTING CLUBS OR ASSOCIATIONS
Overview
Relevance of this Chapter
Definition of Undue Pressure
The Legal Commitments made by the Soccer Federation
The Legal Commitments of the NSL Clubs
The Adelaide City Club Rooms and Loan Agreement
The 1995 Clubs Memorandum of Understanding
May 1995 and May 1996 Authorisation by the Council of Clubs
The 1996 Licence Agreements
The 1997 Licence Agreement
Later Complaints about the Cost of Playing at Hindmarsh
Conclusion
CHAPTER 28 - DETAILED FINDINGS ON TERM OF REFERENCE III(b)
Overview
Chapter 29 - Historical Overview of Legal Documents
Chapters 30 to 34 - Present Status of Legal Documents
Chapter 35 – Financial Status of the Signatories and Creation of Financial
Difficulty
CHAPTER 29 - HISTORICAL OVERVIEW OF LEGAL DOCUMENTS
Introduction
Legal Documents Prior to April 1995
The April 1995 Memoranda of Understanding
Stage 1 Project Documents
Fit Out of Stage 1
The Acquisition of Land Surrounding Hindmarsh Stadium
Stage 2 and the Hosting of Olympic Soccer at Hindmarsh Stadium
Current Arrangements for Ownership and Management
Purchase of Hindmarsh Stadium Site
Soccer Federation Agreement
Adelaide City Agreement
CHAPTER 30 - PRESENT STATUS OF LEGAL DOCUMENTS PRIOR TO APRIL 1995
The 1981 Lease
The 1994 Ground Management Agreement
Parties, Execution Status, Enforceability and Purpose
Key Terms
Currency
The Adelaide City Club Rooms and Loan Agreement
Parties, Execution Status and Purpose
Enforceability and Currency
Key Terms
CHAPTER 31 – PRESENT STATUS OF APRIL 1995 MEMORANDA OF UNDERSTANDING
The April 1995 Memorandum of Understanding
Parties and Execution Status
Enforceability
Currency
Overview of Key Terms
Conditions Precedent and Status of Performance
Ownership and Control
Construction Obligations
Funding
Reporting and Accountability
The NSL Clubs Memorandum of Understanding
Parties and Execution Status
Enforceability
Currency
Key Terms
CHAPTER 32 – PRESENT STATUS OF THE STAGE 1 PROJECT DOCUMENTS
Engagement of the Department for Building Management
Woods Bagot Consultancy Agreement for Stage 1
Parties, Execution Status, Enforceability and Currency
Key Terms
The 1996 Lease
Parties and Execution Status
Enforceability and Currency
Key Terms – The Lease Schedule
Key Terms – The Lessee’s Covenants
No Government Approval of Terms
Hindmarsh Stadium Site Now Greater than Land in 1996 Lease
Caveat by the Treasurer
Stage 1 Construction Management Agreement
Parties, Execution Status and Enforceability
Currency and Status of Performance
The 1996 Licence Agreements
Parties and Execution Status
Enforceability
Currency
Key Terms
The Stage 1 Funding Deed
Parties
Enforceability and Currency
Key Terms and Status of Performance
Scope of the Redevelopment
Project Costs
Funding
Grandstand Levy
Treasurer’s Guarantee
Free Tickets
Charge over the $3 Levy monies
1996 Lease
Mortgage of the 1996 Lease
Licences from the NSL Clubs
Letter from Soccer Australia
Premier League Matches
Role of the Minister for State Government Services
Establishment of the Stadium as a Separate Profit Centre
Records of Match Attendances
Management Committee
Record Keeping, Audit, Provision of Information and a Business Plan and
CHAPTER 33 – PRESENT STATUS OF LEGAL DOCUMENTS FOR FIT OUT OF STAGE 1
The Fit Out Guarantee Deed
Purpose and Execution Status
Enforceability and Currency
Key terms and Status of Performance
Scope of the Fit Out
Funding
Marketing and Advertising Expenditure
Treasurer’s Guarantee
Charge over the Levy monies
Reporting Obligations
Events of Default
The Fit Out Loan
The Fit Out Guarantee
Parties and Execution Status
Enforceability and Currency
Key Terms and Status of Performance
CHAPTER 34 – PRESENT STATUS OF LEGAL DOCUMENTS FOR THE ACQUISITION OF LAND SURROUNDING HINDMARSH STADIUM
Retainer to Undertake a Strategy Overview
Letter of Appointment
Option Agreements
3 Hindmarsh Place – Azzuri Club Land
3A Hindmarsh Place – former Christian Church
6 Hindmarsh Place – Anglican Church
15A Richard Street – Flexbane & Nib Nominees
Contracts for Purchase of Land
July 1997 SOCOG Letter of Agreement
Parties and Execution Status
Enforceability and Currency
The Olympic Memorandum of Understanding
Execution Status
Enforceability and Currency
Key Terms
Physical Requirements
Organisation and Conduct of Matches
Cost
Revenue
SOCOG Marketing Agreement
Parties and Execution Status
Enforceability and Currency
Key Terms
Stadium Use Deed
Execution Status, Enforceability and Currency
Key Terms
Woods Bagot Consultancy Agreement for Stage 2
Parties, Execution Status, Enforceability and Currency
Key Terms
Stage 2 Construction Management Agreement
Parties, Execution Status and Enforceability
Currency and Status of Performance
Stage 2 Minister’s Licence Agreement
Parties, Execution Status and Purpose
Enforceability, Currency and Status of Performance
The Stage 2 Council Licence
Parties, Execution Status and Purpose
Enforceability, Currency and Status of Performance
Relocation of Hindmarsh Bowling Club
Meals on Wheels Relocation
1957 Lease
Relocation Proposals
Contract for Sale and Purchase of 52 Manton Street
Construction of New Kitchen Building
Deed of Surrender of Lease
Relocation Deed
Belarusian Church Relocation Deed
Compensation Agreements with Adjacent Landowners
Financial Status of the Soccer Federation
Financial Status of Adelaide City
Financial Status of West Adelaide
Creation of Financial Difficulty by Legal Documents
Soccer Federation
Adelaide City
West Adelaide
CHAPTER 37 – DETAILED FINDINGS ON TERM OF REFERENCE IV
Introduction
Conflicts of Interest
Imprudent or Improper Behaviour
Appropriate Processes
CHAPTER 38 - CONFLICTS OF INTEREST OF GOVERNMENT REPRESENTATIVES
Overview
Relevant Principles
Mrs Hall – Overview of her Various Roles
Mrs Hall – Ambassador for Soccer in South Australia
Mrs Hall – Parliamentary Secretary
Terms of Appointments
Duties as a Parliamentary Secretary
Mrs Hall – Chair of the Stage 1 Redevelopment Committee
Formal Definition of Mrs Hall’s Role
The Minister’s View of Mrs Hall’s Role
Mrs Hall’s View of Her Role
Mrs Hall’s Conflict of Interest and Duty as Chair of the Stage 1
CHAPTER 39 - CONFLICTS OF INTEREST OF NON-GOVERNMENT PERSONS
The Soccer Federation
CHAPTER 40 – APPROPRIATE PROCESSES
Overview
The Planning Stages of the Project
Overview
Inadequate Feasibility Studies
Cabinet Submissions Inadequate Basis for Cabinet Decision
Inadequate Definition of FIFA/SOCOG Requirements
No Legal Relationship Between the Government and the NSL Clubs
Failure to Resolve Ownership and Management Issues
The Awarding and Monitoring of Consultancies
Irregular Retention of Primary Consultant for Stage 1
Overview
Terms of Woods Bagot’s Consultancy Agreement
Mr Ciccarello’s Appointment
Irregular Retainer of Primary Consultant for Stage 2
Overview
Work Prior to Formal Retainer for Stage 2
Formal Retainer of Woods Bagot for Stage 2
National Portfolio Strategies
Rider Hunt
The Tendering Process and the Letting of Contracts
Overview
Sponsorship
Inappropriate Selection Process
The Construction of the Stadium
Stage 1
Stage 2
The Ongoing Management of the Stadium
APPENDICES
APPENDIX 1 – THE COST OF THE REDEVELOPMENT
Table 1 – Capital Cost
Table 2 – Repayment of Soccer Federation Loans
Table 3 – Total Government Exposure
Table 4 – Detailed Capital Cost
Table 5 – Increases made to the Stage 1 Budget
Table 6 – Increases made to the Stage 2 Budget
Table 7 – Repayments of Stage 1 Loan to 30 June 2001
Table 8 – Repayments of Fit Out Loan to 30 June 2001
Table 9 – Guarantee Fee Payable to the Treasurer
APPENDIX 2 – SPECTATOR ATTENDANCES AND LEVIES PAYABLE UNDER FUNDING AND FIT OUT DEED AND LEVIES WAIVED OR SUSPENDED
Table 1 – 7 December 1997 to 30 September 1998
Table 2 – 1 October to 31 December 1998 and 1 January to 30 September 1999
Table 3 – 1 October 1999 to 30 September 2000
Table 4 – Summary
Table 5 – Average Attendances at NSL Matches at Hindmarsh Stadium from
1991/1992
APPENDIX 3 – THE COST OF HOSTING OLYMPIC SOCCER AT HINDMARSH STADIUM
APPENDIX 4 – CONCEPT AND SITE PLANS OF HINDMARSH STADIUM
Plan 1 – Hindmarsh Stadium - Site Plan - 1995
Plan 2 – Hindmarsh Stadium Site Plan – 1989 – Used as Annexure A to
April 1995
APPENDIX 5 – EXPLANATION OF "FIFA REQUIREMENTS"
Introduction
FIFA Generic Publications
Laws of the Game
Authorisation of Temporary Stands in Stadia
Non-binding Technical Recommendations
Sydney 2000 Guidelines
Football Stadia Minimum FIFA Requirements
Olympic Games Football Tournament FIFA/SOCOG Requirements
Indirect Evidence of FIFA Requirements
1993 World Youth Championships
Initial Negotiations with the Soccer Federation for Further Upgrade
Preliminary Costing of Further Development
Initial Negotiations with SOCOG for Hosting of 2000 Olympic Soccer Tournament
Woods Bagot Preliminary Examination of FIFA Requirements
July 1996 Statement of Requirements
29 October 1996 - "Legacy for Sport"