Exclusive: Companies given Queensland government grants now deregistered

The Queensland government has paid millions of dollars in taxpayer funds to overseas companies which are now deregistered, as part of a program designed to boost start-ups.

Of more than 50 companies who received taxpayer funds as part of the Hot Desq program, a 9News investigation could only find 13 who still have staff in Queensland.

Another 13 companies did not respond to questions from 9News about whether they still employed staff in the state.

Thirteen companies, who were paid a total of $1.125 million, have been deregistered or struck off.

Another seven, paid a total of $500,000, have left Queensland.

The companies, who each received between $50,000 and $100,000, were mostly technology companies, for example Eternime, which uses social media accounts to create personal avatars that live on after people die.

Eternime received $100,000 but ASIC records show it’s now deregistered.

The government says the Hot Desq program was never meant to bring companies that would stay in Queensland, rather it was hoped they would bring their expertise to help grow the Queensland start-up economy.

A few have been a success, like Notiv, which received $75,000 in funding and now employs nine Queenslanders developing artificial intelligence software for Queensland businesses.

Hot Desq is now officially under review.

“We need to make sure that each program is delivering. I have said from day one I will only support programs that continue to deliver. If they're not delivering then of course we'll have a look at them,” innovation minister Kate Jones said.

Opposition leader Deb Frecklington said the program was a waste of taxpayer dollars.