After a number of instances of potential fraud were uncovered in the IEPS, Treasurer Nicole Manison suspended the scheme in August 2017.

The Auditor General yesterday tabled a damning assessment of the performance management systems put in place for the flawed IEPS scheme.

Ms Manison said the Auditor General’s report has revealed a long list of errors, oversights, lack of proper systems and checks and potential criminal activity.

“Four years of chaos by the former CLP Government hurt the Territory and the IEPS is a clear example of their lack of administration and policy rigour,” she said.

Ms Manison said the recommendations made by the Auditor General have been acted upon by the Department of Infrastructure, Planning and Logistics (DIPL), and will be taken into account when a new Aboriginal employment initiative is developed.

“There have been significant improvements to the audit and compliance functions within DIPL, with $450 000 reallocated as part of the Machinery of Government changes in 2016 and an additional $500,000 announced in August 2017, to ensure a greater level of scrutiny in construction contract procurement across the Agency,” she said

“It was these strengthened audit and compliance systems that picked up the problems that we acted upon - this is a good sign the changes are working.

“A cross-Government working group is also developing a new policy in consultation with business and industry to drive Aboriginal employment initiatives.”

Ms Manison said a number of matters arising from the IEPS are currently under investigation by Northern Territory Police.