Why were Housing Dept homes not provided with insulation?

INSTALLERS may have ripped-off millions of taxpayer dollars fitting ceiling batts in public housing units, which were not covered by the axed $2.45 billion home insulation scheme.

The South Australian government has confirmed that about 400 housing commission homes were wrongly fitted with insulation under the Rudd government scheme axed last week after four deaths and more than 20 fires.

From The Aus.

What was the thinking behind this decision? Did the Housing Dept do a cost/benefit analysis and figure out that it wasn't worth it - that it would not pay to insulate government owned housing?

If so, why pay for it to be installed into houses where the owners have done a similar calculation and reached the same conclusion - that it was never going to be worth the money?