In a fiery inquiry appearance on Thursday, former Commonwealth Games legacy minister Harriet Shing revealed she was advised on June 22 the event could be cancelled because of cost pressures.
She was told by then Commonwealth Games delivery minister Jacinta Allan, who replaced Daniel Andrews as premier last month.
Mr Andrews announced Victoria was pulling out of hosting the Games across regional areas on July 18, citing the original estimated cost blowing out between $6 billion and $7 billion.
Law firm Arnold Bloch Leibler was hired on June 14 as the Victorian government sought legal advice on potentially withdrawing from the Games.
The parliamentary inquiry into the axing of the Commonwealth Games has continued taking evidence.
Ms Shing gave evidence to a budget estimates committee on June 8, reaffirming the previous year's budget outlined $2.6 billion to deliver the entire Games.
Liberal MP and committee member David Davis questioned the credibility of Ms Shing's version of events, suggesting she knew the $2.6 billion figure was "bulls**t" before being forced to withdraw the term.
"My evidence is my evidence, Mr Davis, and I stand by it," Ms Shing replied.
Department of Jobs, Skills, Industry and Regions secretary Tim Ada previously told the inquiry he was advised the government was considering all its options around June 19.
Mr Davis said it was hard to believe the department head did not inform Ms Shing earlier the Games were at risk of not going ahead.
"It's just not credible. It's cloud cuckoo-land stuff," Mr Davis said.
Ms Shing said she was getting "sick and tired" of Mr Davis' inferences of impropriety after suggesting she must have known earlier as a key Games minister and the partner of former premier Daniel Andrews' chief of staff, Lissie Ratcliff.
"My relationship has been a matter of public record for years," she said.
"Mr Davis, if you've got an allegation, then put it (forward)."
Mr Davis responded: "Well, my allegation is simply that you're not being direct and honest with the committee".
Shaun Leane was the inaugural Commonwealth Games legacy minister.
Her predecessor in the role, upper house speaker Shaun Leane, also appeared at the inquiry into the dumped sports extravaganza on Thursday.
Mr Leane served as the inaugural minister of the now-abolished portfolio from June to December last year.
He admitted he never sighted the business case to host the Games, which originally put the cost between $2.5 billion and $3 billion.
"I didn't think I needed to," Mr Leane said.
"The process was well in advance by the time I was asked to do this role."
The business case, pulled together by consultancy firm EY, outlined athletes' villages would be built in Ballarat, Bendigo, Geelong and Gippsland.
About 20 to 30 per cent of village accommodation was then slated to become affordable and social housing after the event.
Mr Leane could not remember whether he met with Homes Victoria, the agency responsible for managing the state's social housing system, to discuss Games-related housing plans.
In August, the Victorian government agreed to pay $380 million in compensation to Games bodies to break its contract.
Ms Allan is refusing to front the upper house inquiry to answer questions and it is powerless to compel her to appear because she sits in parliament's lower house.
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