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Victorian COVID-19 Business Grant Losses and Alleged Cover-up

By Drooid · · How we work

Core Findings of the IBAC Report

The Independent Broad-based Anti-corruption Commission (IBAC) concluded that the Victorian government’s pandemic-era business-support program paid approximately $257 million to more than 9,000 businesses that were ineligible because they had back-dated their Goods and Services Tax (GST) registration. IBAC estimated the total suspected loss could be as high as $285 million. Senior officials in the former Department of Jobs, Precincts and Regions deliberately withheld information about the scale of the loss from their superiors, removed references from draft reports, and supplied briefings that contained “false and misleading” statements. The commission found no evidence of political pressure to conceal the loss, but noted that officials self-censored to avoid displeasing the minister.

Background and Departmental Changes

The grants were part of a broader COVID-19 relief effort that distributed billions of dollars to businesses affected by Melbourne’s lockdowns. Eligibility required GST registration, a criterion that was exploited by some firms. In 2023 the department responsible for the scheme was replaced by the Department of Jobs, Skills, Industry and Regions. The IBAC investigation, dubbed Operation Harmonia, was launched after whistleblowers reported the alleged misconduct.

Official Statements & Responses

She emphasized the importance of transparency for Victorians. Former minister Martin Pakula, who oversaw the program, rejected suggestions that ministerial displeasure motivated the concealment, calling such implications “dangerous” for public servants and ministers alike. The commission made no adverse findings against Ben Carroll, who later became premier.

Verbatim Quote

“I want to applaud the whistleblowers who came forward to Ibac in Operation Harmonia,” — Elliot — Victoria Elliott, IBAC commissioner.