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Tuesday, 2 February 2016
Page: 200

Department of Defence: Instances of Fraud or Theft

(Question No. 1771)


Mr Conroy asked the Minister representing the Minister for Defence, in writing, on 10 November 2015:

Were there any instances of fraud or theft detected by the department from:

(a) internal sources, or (b) external sources, that resulted in a cost to the department in 2014-15; if so,

   (i) what fraud or theft took place,

   (ii) when did the fraud or theft take place,

   (iii) what was the cost to the department of this fraud or theft, and

   (iv) what is being done to prevent the fraud or theft occurring again. We are referring to fraud or theft that has resulted in either a breach of conduct (internally, within the Department) or a misuse of departmental resources (externally, by a third party). Whilst we are interested in examples where this behaviour has been referred to the police, or is punishable under the crimes act, that is not the only information we are seeking.


Ms Julie Bishop: The Minister for Defence has provided the following answer to the honourable member's question:

(a) Yes.

(b) No.

   (i), (ii) and (iii) There were 53 instances of internal fraud or theft detected in 2014-2015 within Defence for which a loss was determined.

The following table sets out: the category of offence detected; when the offence took place; and the loss that was determined.

Fraud or theft category

Date offence took place

Determined loss

Defence Travel Card

22/05/2014

3,183.5

Accommodation Entitlement

18/01/2012

5,654

General Property - Includes Cash

27/05/2014

225.00

Defence Travel Card

20/07/2014

60.00

Military Equipment or Kit

27/06/2014

398.00

General Property - Includes Cash

14/08/2014

200.00

Military Equipment or Kit

11/08/2014

33.60

Military Equipment or Kit

18/07/2014

664.32

Rental Allowance

10/01/2011

6,402.11

General Property - Includes Cash

26/08/2014

250.00

Defence Travel Card

10/08/2014

338.23

General Property - Includes Cash

27/08/2014

26.35

Accommodation Entitlement

13/03/2013

981.02

Military Equipment or Kit

26/09/2014

4,134.00

Military Equipment or Kit

10/09/2014

33.66

Military Equipment or Kit

7/10/2014

1,800.00

Military Equipment or Kit

23/05/2014

430.00

Military Equipment or Kit

29/08/2014

450.00

Rental Allowance

7/07/2014

7,250.00

Rental Allowance

15/10/2014

1,879.11

Computers or IT Hardware

14/10/2013

700.00

General Property - Includes Cash

1/11/2014

1,750.00

Military Equipment or Kit

4/07/2014

1,200.00

Travel Allowance - Non DTC

14/09/2011

4,643.3

General Property - Includes Cash

18/11/2014

50.00

Military Equipment or Kit

20/05/2013

3,780.00

Military Equipment or Kit

24/11/2014

250.00

Military Equipment or Kit

27/11/2014

300.00

Defence Travel Card

30/10/2014

2,970.00

Military Equipment or Kit

25/11/2014

120.00

General Property - Includes Cash

2/12/2014

99.00

General Property - Includes Cash

9/12/2014

800.00

Military Equipment or Kit

1/12/2013

1,568.73

Military Equipment or Kit

16/01/2015

171.19

False Information

1/10/2014

60.00

Allowance Other Not Specified

3/09/2012

194.00

Military Equipment or Kit

18/11/2014

400.00

Military Equipment or Kit

29/01/2015

100.00

Rental Allowance

17/12/2014

1,408.15

Rental Allowance

25/10/2014

1,700.71

Military Equipment or Kit

18/02/2015

940.00

Military Equipment or Kit

18/02/2015

300.00

Rental Allowance

23/09/2011

2,933.38

Defence Travel Card

15/01/2015

1,448.91

Intellectual Property

9/03/2015

109.00

Military Equipment or Kit

16/02/2015

50.00

Military Equipment or Kit

27/03/2015

413.80

General Property - Includes Cash

10/04/2015

795.00

Military Equipment or Kit

24/04/2015

450.00

Military Equipment or Kit

12/05/2015

1,914.18

Military Equipment or Kit

2/06/2015

100.00

Total loss to Defence

 

69,278.70

   (iv) In accordance with the Commonwealth Fraud Control Framework, Defence continues to meet its mandatory obligations to prevent, detect and respond to fraud. Defence has a comprehensive fraud control program established through the Defence Fraud Control Plan No.11. Underpinning the plan is:

A rigorous fraud risk assessment program specifically focusing on enterprise wide fraud risks.

A review of all finalised fraud cases to treat any areas of specific or systemic vulnerability.

The operation of a Public Interest Disclosure Scheme.

The engagement with Defence industry to raise ethics and fraud awareness.

A mandatory Ethics and Fraud Awareness Program for all personnel.

An Annual Data Analytics Work Program to detect fraud, anomalies, waste and potential misuse of resources.

A fraud control testing program informed by an intelligence led risk assessment capability.

The thorough investigation of all fraud allegations by qualified investigators.

The recovery of Commonwealth debts associated with fraudulent activity.

The continuing secondment of a Defence official to the Australian Federal Police Fraud and Anti Corruption unit.

The mandatory centralised recording of fraud investigation information into the Defence Policing and Security Management System.