IBAC found Victorian officials withheld information about the scale of Covid grant losses.
Why it matters: The findings raise questions about oversight of emergency aid and whether public-sector leaders gave ministers, auditors and the Ombudsman accurate information. They also show how rapid, high-trust grant programs can leave major gaps in post-payment controls.
- IBAC estimated about A$257 million was paid to more than 9,000 businesses that did not meet eligibility rules.
- The former department estimated suspected losses above A$285 million in the 2021-22 reporting period.
- Information about the suspected loss was removed from a draft report intended for Minister Martin Pakula and the Victorian Auditor-General's Office.
- IBAC made no adverse finding against Premier Ben Carroll and found no evidence political pressure directly caused the withholding.
Victoria's Independent Broad-based Anti-corruption Commission tabled its Operation Harmonia special report on October 15, 2026, concerning Covid business-support programs administered by the former Department of Jobs, Precincts and Regions. IBAC found senior public officers withheld information from departmental leaders, Minister for Industry Support and Recovery Martin Pakula, the Victorian Auditor-General's Office and the Victorian Ombudsman.
The former department estimated suspected losses of more than A$285 million after identifying businesses that had backdated GST registrations to meet an eligibility requirement. The record does not establish that all such conduct was proven fraud; it was one eligibility issue in the department's loss assessment. IBAC's analysis found about A$257 million had been paid to more than 9,000 businesses that were ineligible under the relevant rules. That figure represents payments IBAC assessed as made to ineligible recipients, not a finding that A$257 million was proven fraud or a final recoverable loss. The findings distinguish the IBAC analysis from the department's larger suspected-loss estimate.
IBAC said information about the suspected loss was removed from a draft report prepared for Minister Pakula and the Victorian Auditor-General's Office after the department's estimate exceeded A$285 million. A 2022 brief prepared for then-Minister Ben Carroll also falsely or misleadingly said Pakula had been fully informed of and approved the assessment approach, and that no erroneous payments had been made. IBAC said: "Decisions were made to withhold information about the magnitude of the loss." Commissioner Victoria Elliott said leaders failed to act after officers raised concerns.
IBAC made no adverse finding against Carroll, now Victoria's premier, and found no evidence political pressure directly caused the withholding. Pakula disputed the suggestion that ministerial displeasure explained the conduct.
The programs formed part of about A$11 billion in Covid business support administered by the former department during the 2020-21 and 2021-22 financial years. The Victorian Auditor-General previously found A$426 million went to applicants not registered for GST before the relevant eligibility date, citing weak post-payment controls. Its audit said the rapid, high-trust model was not matched by adequate checks.
By the numbers
- A$257 million - IBAC's estimate of payments to more than 9,000 ineligible businesses
- More than A$285 million - the former department's suspected-loss estimate for the 2021-22 reporting period
- A$11 billion - Covid business support administered by the former department across the 2020-21 and 2021-22 financial years
Yes, but: The A$257 million figure is an assessment of payments to businesses IBAC found ineligible under the relevant rules. It is not, by itself, a proven fraud finding or a final calculation of recoverable losses.