The culture at Latchford Barracks has been described as "toxic" following the release of a video in which a former Aircraftman is "bound and gagged".
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ABC's 7.30 aired video of former Aircraftman Alister French from October last year, allegedly filmed in the common room of an accommodation block at the Bonegilla barracks.
In the 21-minute video, references are made to "torturing Frenchy" and alleged attacks include attempts to light his head on fire.
"I was very fearful, not only from the people who had done this to me but also my officers," Mr French said.
Before the October incident, Mr French went to Wodonga police with complaints about his experience on base which included "death threats".
Victoria Police confirmed enquiries were made but it was a determined a criminal offence could not be identified at the time.
Senator Jacqui Lambie said in Parliament "Defence had been offered to see the video and have declined to use it as part of evidence".
"They might be going back on that now," she added.
"They say they are completely unaware of this ever occurring and when given the chance to see it themselves, say no.
"There have been dozens of complaints about the toxic culture that seeped into this one base.
"Why hasn't defense done anything about these allegations?"
An ADF spokeswoman said Defence "takes all allegations of unacceptable behaviour seriously and is committed to ensuring that incidents are dealt with appropriately".
"Defence can confirm that all complaints of unacceptable behaviour made by former Aircraftman French in 2020 were investigated at the time.
"Defence is aware of new allegations raised by former Aircraftman Alister French.
"Defence has strongly encouraged any material evidence of such behaviour be referred immediately to the civilian police for investigation.
"Defence is unable to provide further comment."
Defense Minister Peter Dutton appeared on 7.30, describing the video as "disturbing".
"It's appropriate (and) absolutely proper that Defence has reported this now to the Victorian Police and they'll do their own internal investigation," he said.
"As detailed by Alister's solicitor, there'll be a civil action that's initiated; those processes are underway and the courts will now deal with that."
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Asked how confident he was the issue was not a cultural and systemic one, Mr Dutton said it was a large workforce.
"Can I say to you that that everybody conducts themselves at an acceptable standard? No, but do 99.9 per cent of people conduct themselves in a way that would make us proud? Absolutely," he said.
"And in the point one per cent - and this case, on the face of it, is one of those cases - we will deal with it very harshly."