Secret report values controversial Sydney land as ‘worthless’

“At face value, there are sufficient questions there that needed to be answered,” she said.

Asked whether it should go to the Independent Commission Against Corruption, Ms Berejiklian responded: “Potentially – absolutely.”

Labor will step up pressure on Tuesday to force her to act when it puts a motion to Parliament to refer the land deal to the anti-corruption watchdog. It will be voted in the upper house on Wednesday and, if successful, will go to the lower house.

“The community deserves answers, and ICAC has the power to ask the questions,” Labor finance spokesman Daniel Mookhey said.

“It was open to her to make an ICAC reference. She hasn’t. So Labor will seek to invoke Parliament’s right to refer the matter to ICAC directly.”

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The land deal exposé comes two months after the so-called Leppington triangle scandal. That controversy began when the federal Auditor-General released a scathing report into the purchase of land next to the new Western Sydney Airport after the Commonwealth government valued it at just $3 million, less than a year after buying it for $30 million.

Transport for NSW’s 2017 report into the Parramatta light rail project analysed various strategies for realising value from development opportunities at government-owned sites along the preferred route for the Parramatta light rail line.

Of six sites for stage one of the line, the tram depot next to Rosehill Racecourse at Camellia was the only one that was not accorded any value from development opportunities.

Other documents obtained by the Herald show that when Transport for NSW bought the parcel of land in June 2016 at three times the Valuer-General’s estimate, a treatment plant for contaminated groundwater on the site was “nearing the end of its asset life cycle”.

Mr Mookhey said the site was “riddled with asbestos, arsenic and cancer creating carcinogens”, and would cost anywhere from about $50 million to $700 million to clean.

“What we don’t know is why, when originally the seller was meant to clean up the site, somehow the developer managed to convince Transport for NSW to pick up the tab,” he said.

The land sale delivered Billbergia, the largest developer of waterside apartments at Wentworth Point and Rhodes near Sydney Olympic Park, a $15 million windfall, excluding costs.

Transport for NSW did not respond to questions about the land being worthless.

Ms Berejiklian said she was “not aware” a Transport for NSW analysis estimated the value of the land at minus $7 million.