Victorians continue to pay for the financial mismanagement of the Allan Government with $10 million lost in a failed investment in a scrap metal firm.
It has been revealed the Victorian Business Growth Fund investment in Pacific Metal Group – a business that collected scrap metal from old hay sheds and cars – will be lost in full following the collapse of the firm into administration.
This is despite the criteria of the fund requiring any investment to be ‘targeting a commercial return’ on a business that has cash flow that is ‘expected to be positive during the investment’.
The rapid collapse of Pacific Metal Group raises serious integrity questions for the Allan Government as to what due diligence was done before they plunged taxpayer funds for an equity or debt stake in companies such as scrap waste collectors. Labor has demonstrated a complete lack of transparency when it comes to investing taxpayer funds, including in the SEC and the Breakthrough Victoria Fund.
Shadow Minister for Industry, Bridget Vallence, said: “Once again, Victorians are paying the price for the financial incompetence of the Allan Government.
“Labor’s scrap metal investment has turned to junk, and the Allan Government must explain what due diligence was done, and what processes were followed that resulted in losing $10 million of taxpayers’ money propping up a scrap metal yard.
“Victorian industry needs a real plan to support growth, innovation and development, not wasting money taking on a debt stake in organisations that only leaves taxpayers worse off at a time when they can least afford it.”
