Bushfire grants fraud: NSW Government ripped off tens of millions by fraudsters

The State Government’s bushfire grants scheme, which has cost more than $20m in incorrectly paid money could cost taxpayers tens of millions more.

The State Government’s botched bushfire business grant scheme, which has had more than $20 million incorrectly paid out to frauds and crime syndicates, could cost taxpayers tens of millions of dollars more, amid claims of mismanagement.

A photo taken on November 12, 2019 shows residents defending a property from a bushfire at Hillsville near Taree,. Picture AFP

The NSW Greens have obtained government documents which question the validity of many successful grant applications in the $181 million program and whether the Federal Government could refuse to reimburse NSW taxpayers.

It includes evidence that applications were granted despite failing to tick off even the most basic of requirements.

NSW Greens MP David Shoebridge outside the NSW Parliament House. Picture: Christian Gilles

The revelations come after The Newcastle News reported last year that more than $20 million worth of grants had been paid out to fraudulent applications, prompting at least two police strike forces and several government departments to query the scheme.

And the documents uncovered by the NSW Greens show significant concerns from bureaucrats within Resilience NSW and auditors from private firm Ernst & Young.

The scheme, which had been run by Service NSW, was established to get money out to small business operators who had been affected by the 2020 bushfires.

Business owners could apply for a $10,000 or $50,000 grant.

The documents also suggests up to $18 million could have been paid out in fraudulent claims involving just the $10,000 grant.

“This is a scheme that was almost designed to be rorted, with no documentation and almost no internal checks and balances,’’ Greens MP David Shoebridge said.

A photo from November 19, 2019 shows a helicopter dropping fire retardant to protect a property in Balmoral, 150 kilometres southwest of Sydney. Picture: AFP

“There have already been a series of arrests and criminal prosecutions for fraud under these bushfire relief schemes, but they look like they are just the tip of the iceberg.

“It’s hard to believe that the NSW government has been handing out thousands of $10,000 payments and hasn’t even been checking that the online form was completed.

“Of course there is a tension at times like this between getting money out quickly and making sure it only goes where it’s needed. However, this doesn’t mean just handing out cash to anyone who asks.’’

Service NSW has repeated told The Newcastle News that there was never an audit performed on the thousands of applications made under the small business bushfire grants scheme.

Bushfires destroyed huge amounts of Australian property including The Australian Wildlife Sanctuary. Picture: supplied

However, it also repeatedly said an “investigations function” had been established to “strengthen its fraud detection and prevention systems’’.

“The gross mismanagement may even mean that NSW taxpayers end up footing the bill for a scheme that was meant to be fully reimbursed by the Commonwealth,’’ Mr Shoebridge said.

“What we don’t need from this government is more secrecy, more denials and an ongoing cover up.

“We will be having a much closer look at these grants through the Parliament’s Public Accountability Committee, and as chair I am committed to uncovering the full extent of the fraud and mismanagement.’’