South Australia's ombudsman is looking into potential misconduct and maladministration linked to the government's delivery of a one-million-dollar business grant. The state's anti-corruption commissioner has described the payment as "uncommon" in one of five reports published as she prepares to leave the role.
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00:00Just weeks before the 2022 state election, Labor used a clothing company as a backdrop
00:07to announce a new manufacturing fund.
00:09That'll be allocated towards local manufacturing right here in South Australia.
00:15Once in office, the outfit received a $1 million taxpayer grant, except it got the cash by
00:20mistake.
00:21There was an error that took place that the ICAC's investigation was able to identify
00:26that we've been able to respond to rather quickly.
00:28The government says the funds were at first identified as an election commitment, but
00:32says no promise was made.
00:34Peter Malinowskis says his cabinet made that clear to the responsible government department.
00:40What we've been able to do is establish that there was a gap in the process between the
00:45communication of cabinet decisions to relevant agencies.
00:48The clothing maker was later independently assessed for the grant and has kept the money.
00:53Outgoing ICAC boss Anne Vanstone picked up the issue in her evaluation of government
00:58grants.
00:59She hasn't suggested the practice was corrupt, but she has confirmed the ombudsman is inquiring
01:04and has not formed a view on whether there's been misconduct or maladministration.
01:09The fact that ICAC have raised this and that a $1 million grant has been awarded because
01:14of a clerical administrative error seriously makes us question what exactly is happening
01:21in cabinet from this government.
01:22It's unfortunate that there was a lack of adequate communication of that cabinet decision
01:28to the relevant agency.
01:29In a separate report, Commissioner Vanstone also warned ministerial staff are at risk
01:34of corruption.
01:35In one case it investigated an advisor who received large sums of money into a bank account
01:40but ultimately found there was no illegal activity.
01:44She's made six recommendations and the Premier says some of them have merit.