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Monday, 29 May 1989
Page: 2900


Senator TATE —On Wednesday, 24 May, Senator Newman asked me a series of questions about allegations of fraud in the Department of Defence. I am now in a position to answer those questions. As to the first two of many, I am advised that allegations were received regarding these matters. They were investigated by the management audit branch of the Department of Defence. The Australian Federal Police (AFP) has advised me that similar allegations have been received recently and are being investigated. During September 1988 representatives of the AFP and the Director of Public Prosecutions (DPP) met with the Defence Inspector-General and other Defence officers to discuss fraud risk assessment and fraud control. As a result of those discussions, the AFP offered to provide two officers to look at contract tendering processes. The Minister for Defence and I have discussed this matter several times since then and discussions between the AFP, the DPP and the Inspector-General have continued. I expect that arrangements will shortly be completed for the two AFP officers to commence work in the Department of Defence.