SA ICAC to investigate land deal

South Australia's Independent Commissioner Against Corruption is investigating the controversial sale of government land at Gillman.

In a statement on the ICAC website on Thursday, Commissioner Bruce Lander said he was investigating the deal for possible maladministration.

"This is not a corruption investigation," he said.

"However, should I find any evidence to suggest that there has been conduct that falls within the ICAC Act's definition of corruption, then I will pursue it."

The SA government has been under attack over the deal to sell off the land, in Adelaide's north, to developer Adelaide Capital Partners (ACP) without going to tender.

The $100 million deal for the 407ha of industrial land prompted rival developers to seek a Supreme Court judicial review of the decision.

Justice Malcolm Blue found that while the deal was valid, the decision by Renewal SA chief executive Fred Hanse to approve the sale was unreasonable and "made in disregard to prudent commercial principles".

He said there was no basis for the government to have considered the deal was more beneficial to the state than going to a competitive marketing and sales process.

The auditor-general has also criticised the processes involved in selling off the land.

Mr Lander said investigations by his office were usually conducted in private.

But he said he had the power to make a public statement if he thought it appropriate to do so.

He said he had been closely following the evidence given to the Legislative Council Select Committee in its inquiry into the sale and the proceedings before Justice Blue.

"I have requested that the auditor-general provide me with a copy of his report into the matter, but it may not be made available until after it has been formally tabled in Parliament," Mr Lander said.

He said he would conclude his investigation as quickly as possible and make a statement on his findings.

"Until that time, I do not intend to discuss any particulars related to the investigation, nor do I intend to make any further public statements during the course of the investigation."

Opposition Leader Steven Marshall welcomed Mr Lander's announcement.

"There have been two damning reports into this deal revealed in the last week, and we believe that this is an entirely appropriate response," he said.