Deputy Chief Minister Nicole Manison has announced the suspension of the Indigenous Employment Provision Sum scheme.
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The suspension follows advice received from the Department of Infrastructure, Planning and Logistics.
“Following advice received from the Department of Infrastructure, Planning and Logistics relating to potential widespread fraud of the IEPS, the Government has suspended the scheme, effective immediately,” she said.
The scheme was introduced in October 2014 by the previous CLP Government.
Ms Manison said an improved framework to increase Aboriginal employment will replace the IEPS, following a detailed assessment of a number of reports into the scheme.
“An evaluation report undertaken by KPMG in 2016 (attached) will be considered, as will any recommendations from an investigation by the Auditor General which is currently underway,” Ms Manison said.
“Further information will be released by DIPL today, relating to the serious issues uncovered with IEPS,” Ms Manison said.
The matter has been referred to NT Police for investigation.
Audit processes undertaken by the Department of Infrastructure, Planning and Logistics revealed an instance of the potential misuse of the policy which was referred to Northern Territory Police and the Auditor-General in March 2017.
Since that time, there have been multiple alleged misuses discovered which has led to yesterday’s announcement by Government that the Indigenous Employment Provisional Sum (IEPS) policy has been suspended on all new tenders and contracts.
In closing the current Indigenous Employment Provisional Sum (IEPS) policy, Government will consult with business and industry stakeholders to develop a clear and strengthened policy to be in place by January 2018.
In the interim, a strengthened Indigenous Development Plan (IDP) will be rolled out to maximise Aboriginal employment in government contracts.
Businesses currently undertaking work under the IEPS will be able to complete their current project.
An inter-departmental Steering Group will be responsible for implementation of the new policy where a strengthened framework for Aboriginal employment will be developed.