Coronavirus: Victorian taxpayers to carry $95m can for hotel quarantine bungle

No other agencies or individuals will be charged over Victoria’s bungled program, but Worksafe’s 58 counts against the Health Department could cost taxpayers $95m.

The Stamford Hotel in Melbourne was used in the state government’s initial hotel quarantine program. Picture: Getty Images

No minister, bureaucrat or security firm operative is likely to face the justice system over Victoria’s bungled hotel quarantine program, but Worksafe’s 58 charges laid on Wednesday against the state’s health department could result in the taxpayer being liable for fines of up to $95m.

The WorkSafe charges relate to breaches in two Victorian quarantine hotels in May and June last year, which led to the the state’s second wave of coronavirus, killing 801 people, causing more than 18,000 to become infected, and resulting in a 112-day lockdown.

WorkSafe on Wednesday confirmed it had no plans to lay charges against any other agencies or individuals involved in the Andrews government’s program, saying: “Inquiries into other entities associated with this investigation including hotels, security firms and other government departments and agencies have concluded.”

While each criminal charge is punishable with a fine of up to $1.64m, taxpayers will ultimately foot the bill for any fines imposed, as well as for lawyers to defend the health department and prosecute the case on behalf of WorkSafe.

The court action, which will begin with a filing hearing in the Melbourne Magistrates’ Court on October 22, follows last year’s inquiry by retired judge Jennifer Coate, which found that “no person or agency claimed any responsibility” for the fateful decision to use private security guards in hotel quarantine.

Victorian Premier Daniel Andrews. Picture: Getty Images

In findings handed down last December, Justice Coate found the then Department of Health & Human Services should have taken ultimate responsibility as the “control agency” for hotel quarantine, but had instead claimed that role had been one of “shared accountability” with the Department of Jobs, Precincts and regions, which had responsibility for hiring the security guards.

Premier Daniel Andrews had earlier given evidence to the inquiry that his then health minister, Jenny Mikakos, and her department had been responsible for hotel quarantine. Ms Mikakos resigned last September, citing elements of Mr Andrews’ testimony, with which she “strongly” disagreed.

She later accused the Premier of conducting a “masterclass in political deflection” in his response to the inquiry’s findings.

Then DHHS secretary Kym Peake resigned in November, ahead of her five-year contract expiring.

Responding to news of the WorkSafe charges on Wednesday, a senior member of the 2020 DHHS team suggested DJPR should also be facing charges, having hired the security guards.

“This continues to rewrite history. This is very convenient for the government that a government agency backs in the Premier’s narrative,” the person said.

The Andrews government spent more than $15m on legal representation during the Coate inquiry — in addition to the $5.7m cost of the inquiry itself — with six government departments and Victoria Police all hiring their own separate legal teams and at times cross-examining one another at taxpayers’ expense.

DHHS and DJPR had the highest legal bills, totalling $6.25m and $3.7m, respectively.

The 58 WorkSafe charges include 17 breaches of Section 21(1) of the OHS Act, in that DHHS “failed to provide and maintain, as far as reasonably practicable, a working environment that was safe and without risks to health for its employees”.

Rydges Hotel in Carlton, which was also used for the state’s hotel quarantine program. Picture: Getty Images

The remaining 41 charges relate to breaches of section 23 (1) of the OHS Act, in failing “to ensure, so far as was reasonably practicable, that persons other than employees were not exposed to risks to their health and safety arising from conduct of its undertaking.”

“WorkSafe alleges that the Department of Health breached OHS laws by failing to appoint people with infection prevention and control (IPC) expertise to be stationed at hotels it was utilising for the program,” WorkSafe said.

“It alleges the department failed to provide security guards with face-to-face infection prevention control training by a person with expertise in IPC prior to them commencing work, and either failed, or initially failed, to provide written instruction for the use of PPE.

“WorkSafe further alleges the department failed to update written instructions relating to the wearing of masks at several of the hotels.

“In all charges, WorkSafe alleges that Department of Health employees, Victorian government authorised officers on secondment, or security guards were put at risk of serious illness or death through contracting COVID-19 from an infected returned traveller, another person working in the hotels or from a contaminated surface.”

WorkSafe said the 15-month investigation had been “complex”, involving the review of tens of thousands of documents and multiple witness interviews.

“A review of the material from last year’s Covid-19 Hotel Quarantine Inquiry provided relevant context and information that informed parts of the investigation,” the agency said.

“The decision to prosecute has been made in accordance with WorkSafe’s general prosecution guidelines, which require WorkSafe to consider whether there is sufficient evidence to support a reasonable prospect of conviction and whether bringing a prosecution is in the public interest.”

Opposition health spokeswoman Georgie Crozier said the charges highlighted the continuing failure of the Premier and his senior ministers to take responsibility for the botched hotel quarantine program.

“We saw what happened at the hotel quarantine inquiry: ‘I can’t recall. I can’t remember’,” Ms Crozier said.

“Victorians were disgusted by that, and they want somebody to be held accountable, and that starts at the top, that starts with Daniel Andrews.”

A Health Department spokesman said: “As the matter is before the courts, the department will not be providing comment.”

An Andrews government spokesman issued an almost identical statement.