IBAC finds Victorian bureaucrats covered up COVID-19 grant errors

An investigation by the Independent Broad-based Anti-corruption Commission (IBAC) has revealed that senior bureaucrats in Victoria attempted to cover up a massive failure regarding COVID-19 pandemic support grants. The report, titled Operation Harmonia, found that approximately $257 million to $285 million in payments were made to more than 9,000 ineligible businesses.

These businesses reportedly obtained grants by backdating their GST registrations. IBAC found that between 2021 and 2022, senior officials within the Department of Jobs, Precincts and Regions withheld critical information from the department head, the Victorian Auditor-General’s Office, and the Victorian Ombudsman. Specifically, a deputy secretary directed that information regarding the suspected losses be removed from a draft report intended for then-Minister for Industry Support and Recovery, Martin Pakula.

IBAC Commissioner Victoria Elliott stated that the conduct was contrary to the Victorian Public Sector code of conduct and professional obligations. The commission noted that while some officers within the department attempted to raise concerns, leadership failed to act, leaving the government uninformed and allowing ineligible businesses to continue receiving fraudulent grants.