In November 2021, the Department of Jobs, Precincts and Regions identified that more than 9,000 ineligible businesses had claimed grants by backdating their GST registrations, totaling $285 million. The Business Costs Assistance Program, a $4.5 billion initiative, aimed to support firms impacted by pandemic lockdowns in 2020 and 2021.
Instead of reporting the issue, a deputy secretary ordered the removal of loss details from a draft report meant for then-minister Martin Pakula and the Victorian Auditor-General’s Office. Simultaneously, an associate secretary withheld loss information from department head Simon Phemister, keeping the error hidden from key officials.
A damning IBAC report has revealed bureaucrats in charge of Daniel Andrews’ Covid response hid widespread overpayments and drafted misleading briefs to conceal a staggering $285m financial loss during the pandemic, before the blunder could be seen by politicians or the Auditor-General > https://t.co/aYojTnj2no
Internal whistleblowers alerted the Independent Broad-based Anti-corruption Commission (IBAC). IBAC Commissioner Victoria Elliott praised their bravery, emphasizing its role in exposing the misconduct and enabling Victoria’s public sector to learn from the findings. Their actions triggered an investigation into the cover-up.
The report concluded their actions violated public sector codes of conduct and integrity standards.
IBAC’s probe revealed that information was withheld from both the department head and Minister Pakula, false data was provided to the minister, and a report estimating over $285 million in losses was altered by the deputy secretary. It also found that senior officials concealed $257 million in wrongful payments to 9,000 ineligible businesses between 2021 and 2022.
‘Serious failures’: $285m Covid cover-up exposed in Victoria More than 9000 ineligible businesses received Covid-19 grants worth $257m – and Victoria’s most senior public servants worked to ensure no one in government found out. https://t.co/5IM0ogQXDr Senior executives in the Andrews government’s Department of Jobs, Precincts and Regions drove the cover-up, where the deputy secretary ordered subordinates to delete the loss from a draft financial report. The associate secretary then concealed the figures from the secretary to prevent former minister Martin Pakula from being informed. #springst
IBAC’s Operation Harmonia report detailed how two senior bureaucrats withheld information from ministers to cover up the $285 million error. The report concluded their actions violated public sector codes of conduct and integrity standards. Commissioner Elliott highlighted the lack of risk culture and frank advice as factors exacerbating fraud risks.
The investigation confirmed over $250 million in grants went to ineligible businesses, aligning with the $285 million initial estimate and the $257 million concealed by officials. The mispaid amount, though significant, represented a fraction of the $4.5 billion program.
#IBAC’s Operation Harmonia exposes failure to alert government to suspected $285 million lost to ineligible or fraudulent #COVID #grants. This #investigation commenced following #whistleblower reports alleging #corruptconduct by senior public officers: https://t.co/QOXJcVuoBK https://t.co/cEuLSmvghs
IBAC’s report promotes transparency and accountability in Victoria’s public sector. While the cover-up is exposed, the incident underscores the need for robust risk management and honest communication within government agencies.
