'Combined failure' behind $116m for Queensland police building

The decision by Queensland police to spend $116 million to lease a building it has never used was a "combined failure", with opportunities to stop it missed at every turn, the state's corruption watchdog has found.

The Crime and Corruption Commission (CCC) noted in its report the Queensland Police Service (QPS) did not consider buying the property in the inner Brisbane suburb of Stones Corner throughout the process, even though the lease over 15 years "far exceeded" the purchase price.

In its bid to consolidate its accommodation in Brisbane, the QPS entered into a conditional agreement to lease the property at about $500,000 a month, but it was later assessed as not being fit for purpose.

The matter was investigated by the CCC following a complaint by former police commissioner Steve Gollschewski in November 2024, over the procurement process and lack of due diligence before a contract was entered.

The investigation identified no dishonesty, improper relationship or personal gains, but the CCC found opportunities were missed at every stage to halt the transaction.

"The significance of the matter lies in the governance and control weaknesses that allowed a commitment of this size to be made and to become binding," the report states.

"Due diligence was undertaken and legal advice sought only after the commitment, and the QPS did not use available opportunities to reconsider before becoming bound."

The report found there was no competitive process or independent check to determine whether the terms were appropriate, reasonable, and represented value for money.

The CCC also found the QPS committed to spending beyond its budget without government approval, with its request for funding later denied.

"By committing before securing funding, it lost both the option to withdraw and its negotiating leverage," the report states.

The CCC has made nine recommendations to the QPS and has noted it has been working with senior officers since June to discuss the corruption risks it identified.

The recommendations include conducting reviews of leasing processes to examine compliance with proper policies and developing and implementing an action plan to address systemic organisational culture issues.

To address the broader risks to the public sector the CCC has recommended the Queensland Government review its whole-of-government accommodation policy to determine if additional advice or direction is required to ensure appropriate public sector representation in office accommodation matters, including clearer guidance on what constitutes an "operational workplace" and how to apply this definition.