As advised to you, despite best endeavours, it will take a further few weeks before a final Enquiry report can be completed. The key factor dictating this timetable is the need to undertake a complete survey of all Job Matching placements made since January 2001 with Anchorage Labour Hire (ALH), the company affiliated with Leonie Green and Associates (LGA), one of our Job Network members.

Whilst the Department's Legal Counsel has advised me that no evidence has been found to date of fraudulent activities on the part of LGA, it would be imprudent to draw a final conclusion until the Enquiry is completed. I should note that the company is co-operating fully with the investigations. It is essential to the success of the Enquiry that LGA and ALH be able to participate without being subject to external pressures or interference.

The investigations to date into the Job Matching activities of LGA through ALH have already been extensive, including formal interviews with management of both organisations, with staff in a large number of LGA's regional offices and with present and former employees. A thorough review has taken place of Departmental files and interviews have been conducted with relevant staff. These enquiries have identified a number of significant issues that need to be addressed including:

the appropriateness of certain claims for payment by LGA;

lines of accountability within the Department; and

Job Network policy issues, in particular relating to the current terms of Notification of Non-payable Outcomes and related contractual matters.

With respect to LGA's operations, what has already emerged is that a significant number of Job Matching places through the Victorian offices of ALH ... clearly involved people undertaking self-canvassing for jobs, which is not permitted under the contract. LGA has accepted that almost 200 payments were incorrect and has agreed to their repayment. ... Further inquiries will provide information on:

the extent to which the work undertaken fully satisfied the minimum 15 hour requirement over five days;

the extent to which placements arose from an extensive degree of job splitting; and

the nature and effectiveness of individual servicing received by job seekers in the arrangement of their placements.

From a thorough survey of the Department's records, I can also confirm that you were not briefed on any allegations relating to compliance or other aspects of LGA's activities—regarding either the market research work or telemarketing positions arranged through ALH—prior to that date. Furthermore a search of the minutes of the NESA Board meetings of 16 February, 6 April and 1 June 2001 indicate that no discussion of labour hire companies is recorded ...

... the Enquiry has noted that the Department's independent Investigation and Compliance Units, having identified a potential problem with the surge in Job Matching placements by LGA in February, commenced investigations of LGA claims through March and April 2001.

... Finally, LGA never sought, nor could they have gained, approval from the Department to job seekers being `employed' in self-canvassing for their own jobs ... This practice is clearly at odds with contractual obligations under Job Network.

Finally, in line with your wishes, I am expediting the conduct of the Enquiry to enable completion of the investigation as quickly as practicable, mindful of the importance of providing greater certainty for all Job Network Members and their clients. As indicated above, the major outstanding task for the Enquiry is to conduct a complete survey of all job seekers placed with ALH over the last six months. As directed by you, I will separately review the Department's policy framework to examine if any changes are required.

Dear Peter,

... Cheryl has been calling my mobile phone numerous times asking for me to provide information for her to use ... It became obvious last week that while she offered me her “support” agreeing that LGA had not done anything wrong, she (her office) was simultaneously feeding misinformation to the press.

I can only suggest that this example of scare tactics is a desperate attempt to gain my confidence ... I find her actions deplorable and destructive. It appears that she spread this rumour widely and my staff (and their families) and our clients have been very adversely affected.

Hello Leonie, it's Cheryl Kernott. I can understand why you feel a bit tentative about speaking to me at the moment ... There's a strong rumour circulating that you're going to be closed down on Friday. And that could well be before the report's made public. You might want to talk to me about that before question time. I'm in my parliament house office ... and my direct line is 2112.