Up to a fifth of applications to NSW Covid grant program could be fraudulent

NSW officials have revealed a shocking amount of applications to a Covid-19 grant program have not been processed for one specific reason.

Large numbers of applications under Covid-19 grant programs in NSW are suspected to be fraudulent, officials said on Monday.

Service NSW chief executive Damon Rees told a budget estimates hearing some programs have a suspected fraud rate of up to 20 per cent.

Some programs that closed months ago still have forms pending because officials are waiting for proof the applicants are eligible.

“For some of those that might be relating to a specific recurring payment, for others that might be relating to their initial eligibility,” he said.

Customer Service Minister Victor Dominello said there was room for improvement. Picture: Gaye Gerard / NCA Newswire

“A significant portion of those are (about) waiting on customers … for the documentation around the eligibility for the program.”

One grant program which saw a “significant level of attempted fraud” was the test and isolate program for workers who had to stay at home while waiting for coronavirus test results.

That program still has nearly 12,000 applications pending.

Some of those have not yet been processed, while others have been rejected.

The officials acknowledged it wasn’t clear how many genuine applications had still not been processed.

“We were moving heaven and earth to make sure that the money was flowing out the door as quickly as possible with all the constraints at the time of Covid,” Customer Service Minister Victor Dominello said.

Covid-19 grant programs were targeted by suspected fraudsters. Picture: NCA NewsWire /Gaye Gerard

“Is it perfect? No, but has the majority of the people received the bulk of the money? Yes, but there’s always room for improvement.”

NSW Police have previously revealed the elaborate methods some fraudsters use to defraud government programs.

A group of suspected criminals – who were believed to have submitted 120 bogus applications under a pandemic business grant program – had teams of lawyers and accountants on their side, police said last year.

There have also been allegations of widespread fraud targeting bushfire assistance grants.

Originally published as Up to a fifth of applications to NSW Covid grant program could be fraudulent