Call for probe into $60m paid through Indigenous Employment Provisional Sum

A Territory politician has called for a full parliamentary inquiry into what has been claimed to be the NT’s largest known fraud scandal, after investigations were quietly dropped two years ago.

Calls for an inquiry after $60m was paid through Indigenous Employment Provisional Sum, which was found to have been vulnerable to fraud.

A Territory politician has called for a full parliamentary inquiry into what has been termed the NT’s largest known fraud case, after investigations were quietly dropped two years ago.

Questions remain about whether any taxpayer funds rorted from the Indigenous Employment Provisional Sum (IEPS) are yet to be recovered, after an auditor-general report into the scheme found “potential widespread fraud”.

The Department of Logistics and Infrastructure said a total of $59.9m was paid under the scheme between 2014 and 2017, to 146 contractors across 453 contracts.

Less than $900,000 of that money was recouped in subsequent investigations.

The department could not confirm how much – if any – money was believed potentially defrauded in total.

The IEPS was set up under the former Giles CLP government with the aim of encouraging construction companies to hire Indigenous Territorians.

It was shut down abruptly three years later when the NT Auditor-General found financial risks throughout the scheme; noting it had no effective controls in place and did not keep proper records.

The government’s internal investigation wrapped up in May 2022, and then department head Andrew Kirkman referred 21 companies to police.

Ultimately only two small-time contractors and one employee were ever convicted in relation to the scheme – between them responsible for defrauding $316,000.

NT Police confirmed it had finalised all investigations, stating only 18 companies had been referred by the department.

Independent Johnston MLA Justine Davis. Picture: Supplied.

Independent MLA Justine Davis said she would refer the matter to parliament for a full inquiry.

“This scandal exposes a damning lack of transparency, accountability, and financial oversight,” she said.

“A program set up to benefit Aboriginal communities through employment and infrastructure has instead benefited fraudulent businesses.

“While small operators have been prosecuted, major companies and key figures appear to have escaped scrutiny entirely, undermining public trust in the government’s ability to manage taxpayer funds responsibly.

“Territorians deserve a full and public accounting of how much was lost, what was recovered, and who will be held responsible.”

Northern Territory Infrastructure and Logistics Minister Bill Yan. Picture: Gera Kazakov

Infrastructure and Logistics Minister Bill Yan said investigations had already been carried out by police, the department and the auditor general, but did not rule out a parliamentary inquiry.

“The Parliamentary Accounts Committee is best placed to be able to do this,” he said.

“They have the powers to be able to compel witnesses to give evidence, and then they can provide a report back, so if it gets referred through the Public Accounts Committee, they will then make that determination.

“If police have looked into it and there was no further action from them, I’m unsure whether police would be able to go back and (reopen investigations).

“The fact that there was no oversight from the previous government, and the fact that they effectively didn’t do anything with it at the time they had responsibility speaks volumes about how they treat Territorians.”