The Department of Infrastructure has defended its decision to grant a Eurobodalla business more than $750,000 in government funding just months before it went into voluntary administration.
Moruya Ultimate Campers was awarded the grant under the Regional Jobs and Investment Packages (RJIP) initiative in February this year; just eight months later it announced it was going into voluntary administration, placing local jobs at risk.
Customers and creditors of the business have been warned to expect losses.
The department released a statement saying applicants for the jobs grants were assessed against eligibility criteria, and ranked in order of merit.
However it admitted it was unaware the business had gone into voluntary administration on October 10.
”The Department has not been formally notified by the AusIndustry Business Grants Hub, which administers RJIP on the Department’s behalf, that the proponent is in voluntary administration,” it said.
“This project was assessed as meeting Value for Relevant Money criteria under the Program Guidelines.”
The department said there was no guarantee the program would continue.
“The RJIP was an Australian Government Pilot Program,” it said.
“At this time, there has been no government decision on extending the Program.”
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