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A Queensland government department has revealed one employee has been stood down and seven contract staff terminated over alleged fraud related to disaster recovery funding.
The ABC understands the allegations relate to grants given to bushfire-affected residents on Queensland's Western Downs, as well as communities affected by Cyclone Jasper in the state's far north in December 2023.
Department of Treaty, Aboriginal and Torres Strait Islander Partnerships, Communities and the Arts, which administers recovery funding, said there had been nine cases of alleged fraud or misuse of funds by staff.
It said two cases had been referred to the Queensland Police Service for investigation.
State member for Warrego Ann Leahy, who first raised the allegations in Queensland parliament, said an anonymous whistleblower had contacted her about their concerns with alleged wrongdoing in the department.
The LNP MP said the allegations were disappointing.
Ann Leahy raised the concerns after a tip-off from a whistleblower. (ABC Southern Queensland: Georgie Hewson)
"There were people who struggled to even get in contact with community recovery around Tara," Ms Leahy said.
"What we find is that often people miss out because there's a failure to administer taxpayers' funds."
Ms Leahy said the allegations were serious, and there were questions about the community recovery funding that the Queensland government needed to answer.
In Far North Queensland, Annette Mittag had floodwaters up to just below her knee in her Machans Beach home.
On Sunday, December 17, while much of the region was flooding following Cyclone Jasper, Ms Mittag was hitchhiking barefoot with her passport in a plastic bag across "an ocean" to help a disabled client in a neighbouring suburb.
She says she applied for grant assistance but was told she was ineligible because she had insurance.
Annette Mittag says it's upsetting some disaster-affected residents may have missed out on funding. (ABC News: Sharnie Kim)
Ms Mittag said she couldn't recall the exact grant, government, or what the exact response was, only that she didn't receive any money.
"I was just too busy and stressed out to follow up on it," she said.
She said news of the alleged fraudulent behaviour was upsetting as many residents were uninsured.
"That's pretty wrong. I'd like to find out more about what went on there," she said.
"It's pretty bad. There are a lot of people worse off than me. If I didn't have insurance, I'd hate to think where I'd be at now."
The department said allegations of unethical conduct, including fraud or misuse of funds, were taken very seriously.
It said it couldn't comment further due to legal and privacy obligations.
The Queensland Police Service said it was unable to confirm or deny whether such matters were under investigation.