The North Rail Yards site in Townsville city is dilapidated. (ABC News: Baz Ruddick)<\/p>\n
The Queensland Audit Office has found weaknesses in governance, oversight and financial reporting processes in a company owned by the Townsville council.\u00a0<\/p>\n
The now-dissolved Northern Rail Yard Development Pty Ltd was created by the council, without approval from the Queensland treasurer, to oversee the redevelopment of a derelict former Queensland Rail site.<\/p>\n
Townsville Mayor Nick Dametto says the council will outline how much funding was provided to the company in its financial statements.\u00a0<\/p>\n
The Queensland Audit Office (QAO) has criticised the Townsville City Council (TCC) for its handling of a multi-million-dollar development in the city.<\/p>\n
In a letter sent to Townsville Mayor Nick Dametto in July, the QAO said council had an obligation to report to its ratepayers on the financial operations of the council-owned company Northern Rail Yard Development Pty Ltd.<\/p>\n
The company was created by the council in the 2023-24 financial year, which the QAO found was done without necessary approval from the Queensland treasurer.<\/p>\n
The council said it was set up to oversee the redevelopment of a former Queensland Rail depot in the Townsville CBD.<\/p>\n
The Queensland government has allocated $35 million to transform the North Rail Yards into a housing and commercial hub. (ABC News: Baz Ruddick)<\/p>\n
TCC provided Northern Rail Yard Development Pty Ltd with a total of $624,000 in operational funding over the 2023-24 and 2024-25 financial years.<\/p>\n
The Queensland government has allocated $35 million towards the project, which will see the railyards developed into a housing and commercial hub.<\/p>\n
The QAO said its first audit of the council-owned company, which was dissolved in May 2026, found governance, oversight and financial reporting weaknesses.<\/p>\n
"Resolution of these issues was not undertaken in a timely manner, resulting in significant delay of the completion of the audit," the QAO said.<\/p>\n
"By the time these issues were resolved and the audit for the 2023-24 year was completed, council decided to wind up the operations of the entity, and it was deregistered.<\/p>\n
"This meant we were unable to issue an audit opinion on the financial statements of the entity for that financial year."<\/p>\n