The state government has been accused of selling Glenormiston College for a bargain basement price.
A heated exchange occurred in the Public Accounts and Estimates Committee when Member for Polwarth Richard Riordan asked about the sale of the asset.
Mr Riordan asked whether the property had been sold to entrepreneur Dean Montgomery - as had been stated by the government.
He said if that was the case, why had the title for the property been transferred to South West TAFE.
Mr Riordan was told the sale to Mr Montgomery would settle in 2024.
He was told the property had been valued at $4.685 million.
Mr Riordan asked if the covenant for the property to be used only for education purposes had been removed.
"At $4 million it is grossly undervalued if the covenant has been removed," he said.
"The state's going broke and I want to know if we are giving away good property for next to nothing."
Minister for Skills and Training Gayle Tierney said the state government reopened the doors at Glenormistion College following the 2014 election and was committed to the delivery of high quality training at the site.
"The Liberals are guilty of shutting Glenormiston as part of their $1 billion cuts to TAFE - and if they were in power there would be no training delivered there today," Ms Tierney said.
"Mr Riordan's suggestion that Victorians have been ripped off or that the government hasn't followed proper processes is absolute rubbish."
"It's disappointing Mr Riordan hasn't yet taken up my longstanding offer to join me at Glenormiston to see first-hand how vibrant and successful it is."
Mr Montgomery said Glenormiston Land Pty Ltd was an Australian company committed to education provision at Glenormiston.
"We have forged a strong partnership with SW TAFE as our dedicated education provider and look forward to a bright future of training and skills delivery at Glenormiston."
The state government confirmed that the requirement to deliver education at the site was only in place until 2027.
It revealed the sale amount was determined by a recent valuation from the Valuer-General Victoria which took into account educational caveats on the site and a peppercorn lease to South West TAFE.
South West TAFE chief executive officer Mark Fidge said the institution was pleased to continue the delivery of high-quality vocational training at Glenormiston.
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