Queensland Audit Office criticises Townsville council rail yard project
The audit office finds governance and reporting weaknesses in a council-owned company, which was created without approval from the Queensland treasurer.
The Queensland Audit Office has criticized Townsville Council for governance, oversight, and financial reporting issues within a company they owned. The now-dissolved Northern Rail Yard Development Pty Ltd, established by the council without Queensland treasurer approval, oversaw a former Queensland Rail site redevelopment. Townsville Mayor Nick Dametto revealed the council will disclose funding provided to the company in its financial documents.
The Queensland Audit Office previously informed the council of its obligation to report on the council-owned company's financial operations, including performance and position, for each year the entity operated. The council provided Northern Rail Yard Development Pty Ltd with $624,000 in operational funding over two financial years, and the Queensland government allocated $35 million towards the project.
The QAO found governance, oversight, and financial reporting weaknesses in the dissolved company, which were not resolved promptly, causing significant delays. The council dissolved the entity in May 2026, preventing an audit opinion on its 2023-24 financial statements. The QAO also discovered that the council never received necessary approval from the treasurer to establish the company, constituting non-compliance with legislative requirements.
Cr Dametto assured that the project is now being delivered under a direct partnership between the council and Flinders St Rail, with the compliance issues unrelated to the current North Railyards project.
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