The NT Government's spending oversight body has dropped its inquiry into how a prime commercial property was given to a Darwin developer for free, despite acknowledging that infrastructure department officials withheld probity information on the deal.

Key points: Halikos Group was awarded Berrimah Farm for free, despite another bidder offering $30 million

Halikos Group was awarded Berrimah Farm for free, despite another bidder offering $30 million The auditor-general raised questions about the deal

The auditor-general raised questions about the deal The Government's spending oversight body decided not to investigate further because lessons had already been learned

The Public Accounts Committee's inquiry was called after auditor-general Julie Crisp found the Government gave the 168-hectare commercial property known as Berrimah Farm to Halikos Group for free in 2016 without knowing the true value of the land and without carrying out a cost-benefit analysis for taxpayers.

Ms Crisp also first raised concerns that the scope of the project, now dubbed Northcrest, had changed significantly from what was initially offered for public expressions of interest.

Those changes included a $4.9 million buyback of land, the removal of the requirement for the developer to build a bus interchange and the scrapping of a government cattle area — amendments that were not offered to other bidders.

The PAC acknowledged that "it did not have sufficient evidence to draw conclusions" on that matter, but stopped short of referring it on to a proper investigative body.

In a confusing report to Parliament, the PAC found there was no need for a "forensic examination" of the Berrimah Farm land deal with Halikos Group because lessons had already been learned for the future.

What exactly those lessons were was not immediately clear because the PAC was unable to conclude what happened behind closed doors when the scope of the project was altered during private negotiations with Halikos.

"The committee determined that whilst there needed to be future improvement in such practice, the priority was not … a forensic examination of what occurred in past transactions, but to rather ensure past experience results in improved government decision-making and robust systems," the report stated.

It offered no solutions for those "improvements".

The Berrimah Farm, now called Northcrest, redevelopment area pictured in 2014. ( Supplied: NT Department of Housing )

New project development framework praised

Halikos Group were ultimately awarded the land for free, despite another bidder offering $30 million.

All proponents were required to absorb the costs of providing infrastructure and headworks at the site.

The PAC report states that the Department of Infrastructure Planning and Logistics provided the committee with two probity reports from December 2014 and October 2015 that found a "satisfactory level of compliance".

However, the department did not provide "other advice the probity officer gave through the process" that included information on the negotiations between the two final proponents and the department.

Department officials also did not explain to the PAC why the scope of the project changed after being awarded to Halikos Group.

They had previously said the changes were done at the request of the previous CLP government.

"Flexibility is required on the detail of such a project to enable the parties to find the optimal outcomes," the PAC report stated before surmising, "at the same time, too much deviation may result in a project for which another proponent could have been able to make a superior offer".

The PAC also determined that the department did not use a probity adviser during the final negotiations with Halikos, when the changes to the project were introduced, but the oversight body did not seek an answer as to why.

Despite the lack of details and withheld information, the PAC concluded that it was best not to investigate further and instead praised a new NT Government project development framework that was introduced in early 2017, which requires reviews and a detailed business case to be made prior to an "investment decision".

The committee pledged to "review and investigate" the new framework "over time".

PAC chair and Labor MLA Kate Worden is overseas and did not respond to emailed questions.

The $300 million development, which will see 2,200 homes, a retail precinct and commercial office space, is estimated to be worth well above $1 billion when completed.