The New Wales Treasury suffered $ 20.3 billion when the state government set up a commercial corporation to hold rail assets, a new report said.
The NSW auditor general said in a new report that the “fair value” of trains and rail network decreased by that amount when the state transferred ownership of Transport Asset Holding’s assets.
“When TAHE became a commercial organization, it needed to change its approach to valuation,” wrote Auditor General Margaret Crawford in a new report called Transport 2021.
“The value of a commercial organization’s assets cannot exceed the cash flows that they could realize through their sale or further use.
“This change in valuation led to a decrease in the fair value of the assets by $ 20.3 billion … because the cash flows that support the valuation according to the income approach were insufficient to support the preliminary valuation based on the current replacement value of these assets.” .
Labor spokesman Daniel Mucha called TAHE a “budget scam” and blamed Prime Minister Dominique Perotte, who was the treasurer when it was set up.
“TAHE is now looming as the biggest self-inflicted fiscal catastrophe in recent history,” Mr Mucha said.
“The public would have been better off at $ 20 billion if Mr. Perrot had never created TAHE.”
Earlier, Ms. Crawford opened the Treasury on “extreme danger” and said to clear her act after disagreements over TAHE’s accounting practices led to the opening $ 5.2 billion hole to be filled with taxpayer money.
TAHE is a commercial state-owned corporation that manages railway assets, which replaced the former non-profit organization.
The Railway Corporation charges the Sydney Trains and NSW Trains train operators for the use of the rail network and trains and receives most of its revenue from government contracts.