Victoria’s Independent Broad-based Anti-corruption Commission found that senior public servants hid the wrongful payment of $257 million of pandemic support to more than 9000 ineligible businesses.
IBAC today published a report on Operation Harmonia, an investigation which began in August 2022 following allegations of corrupt conduct by senior public officers in the then-Department of Jobs, Precincts and Regions.
The investigation found that between 2021 and 2022, information was withheld from the head of the department and the Minister for Industry Support and Recovery, Martin Pakula, by the sssociate secretary and deputy secretary, IBAC said.
Information was also withheld from the Victorian Ombudsman and false information was provided to the Minister for Industry Support and Recovery about thousands of ineligible businesses that were able to obtain government grants by backdating their registration for paying the GST.
“Even after this issue was identified, the department failed to address it, meaning ineligible or fraudulent businesses continued to apply for and receive grants,” IBAC said.
A report prepared for Mr Pakula and the Auditor General’s Office revealing the mistake was altered to by the department’s deputy secretary to remove information after the suspected loss was estimated to be more than $285 million, IBAC said.
“What Operation Harmonia has uncovered is behaviour contrary to the Victorian Public Sector code of conduct, professional obligations and a clear failure to act in line with the high integrity standards expected of Victoria’s public officers,” IBAC Commissioner Victoria Elliott said.
“An absence of a positive risk culture and failure to provide frank and fearless advice, no matter how uncomfortable, ultimately left the department vulnerable to an even greater risk of fraud and corruption.
“While officers within the department spoke up, their leaders failed to act, meaning the government was left uninformed and unable to move quickly to address this suspected significant loss of public funds.
“This special report exposes serious failures by senior public officers, and informing Victorians of these findings is crucial in promoting transparency and accountability in the public sector. “
With Victorians going to the polls next month, the report is a blow to the Labor Government of Premier Ben Carroll.
More to come