The group in charge of Victoria's biggest infrastructure projects manages work poorly, increasing the risk of error and fraud, a scathing report has found.
Victorian Auditor-General Des Pearson said Major Projects Victoria was "not able to demonstrate that it operates, and manages infrastructure projects effectively, efficiently or economically".
In his Managing Major Projects report, Mr Pearson outlined deficiencies in the way MPV monitors its performance, claiming there was little transparency in its self-assessment process.
"MPV adopts employment practices that do not represent value for money and lack transparency and integrity," the report reads.
"These practices have included employees resigning and being reengaged soon after to perform the same work at a much higher cost to the public."
Mr Pearson also reported that MPV was at increased risk of fraud and error because of its poor management of internal contracts.
Major Projects Minister Denis Napthine said the report highlighted the previous Labor government's mismanagement of projects.
"This report, tragically for Victorians, is a damning indictment of major projects under the previous Labor government," he said.
He said a new head of MPV had been appointed earlier this year and the Government had installed a new system to monitor projects across the state.
Opposition spokesman Tim Pallas said lessons needed to be learned from the report, but defended experienced personnel working in MPV: "This report can be a lesson for all governments or it can be an opportunity for a government intent on allocating blame elsewhere to continue to do nothing and to live in fear of failure."
Mr Pearson said projects managed by MPV were valued at about $35.6 billion, with projected spending of around $7.6 billion in the 2013-14 financial year.
The Auditor-General made 22 recommendations that Dr Napthine said would be adopted.
VAGO Report (LINK)
LISA Comment: We see yet another example of government funding, but failing to control the public service. The Department of Human Service is a classic example of ministers being 'mediators' rather than 'controllers'.