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A new report from Victoria's anti-corruption watchdog has found public servants covered up the suspected loss of a quarter of a billion dollars in public funds. The loss came from businesses fraudulently applying for covid business support grants when they weren't eligible. And when the department discovered the loophole, public servants didn't tell the minister.

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00:02Empty streets and shuttered shops at the height of COVID lockdowns businesses were crying for help.
00:08Over two years, $11 billion in emergency business support grants were paid so businesses could stay afloat.
00:16These grants were necessary and they needed to be administered quickly.
00:20But some businesses received money they weren't entitled to through a GST-related loophole.
00:26IBAC Analysis has found $257 million was wrongly paid to 9,000 businesses,
00:33with public servants failing to disclose the loss in briefings to the Minister for Industry Support and Recovery, Martin Pakula,
00:41and the department's secretary.
00:43They need to make decisions. Should they recoup payments? Should they suspend the program?
00:47They need that information and they didn't have that.
00:50In the report, the deputy secretary states the department didn't give full and frank advice to Mr Pakula as a
00:57result of a chilling effect from particular behaviours.
01:00Mr Pakula responded to IBAC saying while public servants may not want to contend with a cranky minister, such a
01:07response can never be justified.
01:09The premier, Ben Carroll, who took over the portfolio from Martin Pakula was named in the report.
01:15He was also provided misleading information when he was briefed that his predecessor had approved of the grants process and
01:23that no payments had been made in error.
01:26It's just more evidence of a government that has mismanaged taxpayer money and more evidence that corruption is rife.
01:34I've been very clear to the head of my department that we act on these reports and we act on
01:41them immediately.
01:42According to the report, as of April this year, just $8 million of the fraudulent grants had been repaid.
01:49So, since we've only used
01:52you
01:53are
01:54great
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