Victoria officials concealed up to $285 million in losses from COVID grants — The Guardian
In Australia, senior officials in the state of Victoria concealed from management the scale of potential losses from COVID grant payments to businesses that did not meet the programmes’ criteria. The amount involved was up to $285 million, the Independent Broad-based Anti-corruption Commission of Victoria (IBAC) found, The Guardian reports.
Payments to ineligible businesses
According to the investigation, during the pandemic the Victorian government paid an estimated $257 million in grant support to 9,000 businesses that were not eligible for the funds. The review concerned the actions of employees of the former Department of Jobs, Precincts and Regions, which was replaced by another department in 2023.
IBAC found that by mid-2021, the department was aware of potential problems related to the use of the GST indicator to assess grant applications. When the possible losses were estimated at up to $285 million, the deputy secretary and associate secretary, according to the commission’s findings, decided not to report this to their management.
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Data removed from reports
The deputy secretary also ordered all information about the likely losses to be removed from a draft report for the then Minister for Industry Support and Recovery, Martin Pakula, and the Victorian Auditor-General’s Office, according to the Operation Harmonia report.
In 2022, after an audit of the grant programmes began, the deputy secretary prepared a briefing for the then minister Ben Carroll that IBAC described as false and misleading. It stated that Martin Pakula had been informed of and approved the department’s approach, and that there had allegedly been no incorrect payments. The commission made no adverse findings regarding Ben Carroll, who is now Premier of Victoria.
The investigation was launched following reports by whistleblowers about suspected corrupt conduct in the department. IBAC Commissioner Victoria Elliott said the investigation’s findings demonstrated serious failures among senior officials and also commended the whistleblowers for reporting the matter to the commission.
