The Allan Labor Government’s venture capital fund, Breakthrough Victoria, has posted a $3 million financial loss after just three years of operation, down from a $58.7 million profit last financial year.
This significant financial loss reported in Breakthrough Victoria’s 2023-24 Annual Report, comes at a time the organisation is in serious disarray, with its CEO recently quitting, five directors quitting the Board, and legal action being taken against it by one of its investment company’s founders.
The Allan Labor Government’s Treasurer, Tim Pallas, is the sole shareholder and former Labor Premier, John Brumby, is the Chair of the Board. With the government yet to outline its process, and progress, to recruit a new CEO, there are serious questions about who is steering the ship.
This comes after attempts by the Liberals and ³Ô¹ÏÍøÕ¾s to gain transparency on Breakthrough Victoria’s investments via a Freedom of Information request to the Department of Treasury and Finance, which was blocked.
The fund’s Quarterly Investment Reports were sought to provide insight into the quality of investments made by Breakthrough Victoria and the return on investment for Victorian taxpayers.
Victorians deserve to know greater detail about the fund’s investments, such as the $37 million handed over to an American stratospheric ballooning company, whose own auditors doubted their survival.
Shadow Minister for Industry and Innovation, Bridget Vallence, said: “Labor is gambling $2 billion of Victorian taxpayers’ money on its secretive Breakthrough Victoria fund, and now it is in financial strife.
“The CEO quit, five board members quit, and now Breakthrough Victoria under Labor is in financial disarray. Treasurer Tim Pallas must come clean about the financial incompetence of Labor’s secretive investment fund.
“Labor cannot manage money and Victorians are paying the price.”
