Hundreds of Lismore flood grants deemed fraudulent, over $17 million unspent

More than 600 grant applications have been deemed fraudulent with millions of dollars still yet to hit the bank accounts of flood-ravaged Lismore businesses. Find out why.

Hundreds of applications for flood grants in Lismore have been deemed fraudulent while $32.5 million worth of applications have been declined, according to new data from Service NSW.

The data reveals that 633 applications for flood grants in the Lismore local government area (LGA) were deemed fraudulent.

Meanwhile, a total of $17 million that has been approved is yet to be paid out to frustrated residents and business owners in the Lismore LGA.

A total of $32.5 million in grant applications have been declined or deemed ineligible by Service NSW.

The data highlights the issues facing the people of the flood-ravaged region who are yet to make full recoveries to their businesses and homes.

“Fraudulent applications take valuable time away from assessors helping genuine customers in need of financial assistance,” a spokesman for Service NSW said.

“Providing false or misleading information is an offence and may result in prosecution and a liability to repay payments”.

Lismore central business district, boarded up businesses, gutted shops. Picture: Cath Piltz.

In total, $24 million in flood support grants have been approved and paid in the Lismore LGA.

Some business owners have been waiting for more than two months to be approved and others are yet to receive word on whether their grants will actually be paid.

Service NSW says 1876 applications - a mix of the small business grants, the back home (home rebuild) grants and rental support payments - have been made but are still waiting for approval and haven’t hit bank accounts in the Lismore area.

Nollie Nahrung, who owns Punt & Crick collectibles on Woodlark Street in Lismore CBD says the grant process is long, tiresome and residents would be better served with a federal government insurance guarantee, which could dodge potential fraudsters better.

Nollie Nahrung from 'Punt & Crick' collectibles on Woodlark Street Lismore. Picture: Nicholas Rupolo.

“I think it would be a really valuable factor, if you accept in Lismore that you will be flooding you need flood insurance but you can’t get it, an insurance guarantee would work,” she said.

“It would be a better system business-wise and more reliable to get our insurance claim rather than the grants.”

Mrs Nahrung had $14,000 worth of stock get washed away during the floods and had no flood insurance.

She managed to get back up and running because of her landlord’s determination, rather than a quick grant process to get the funds she needed.

“Our landlords were incredible,” she said.

“They had the place cleaned and were trying their hardest to get ourselves back in business it happened in no time.

“If we didn’t have that determination from the people that live and work here it wouldn’t have happened”.

Sue Cramp, owner of Floret in Lismore and landlord for Ms Nahrung, says it took eight weeks for her to apply for the $50,000 small business grant and receive confirmation that she had been approved.

Her experience explains why almost 2000 applicants are still waiting to hear from Service NSW in regards to their grants.

“We applied for the $50,000 but by the time we heard we had been approved we were getting to the bottom of our savings because they make you run down your kitty before you can get the grant,” she said.

“When I tried to get it done the first time I had ten photos and invoices but I was told you need bank statements to show you’ve spent it to be reimbursed.

“There’s a lot of dotting I’s and crossing T’s and I had people phoning me back because an invoice didn’t match up to the bank statement to the tee.”

Service NSW said one quarter of the flood grants that have been applied for have been paid out to business owners and residents. A total of 1864 grants have been processed and paid out of 7188 applications made as at May 17