AusAid investigating 178 active fraud investigations

11 March 2013 By
Fraud-Investigation-ausaid

Fraud-Investigation-ausaidAUSTRALIA’S $5.2 billion foreign aid program has been hit by corruption claims involving a flagship project in Afghanistan, while a forestry deal in Papua New Guinea has triggered a diplomatic rift.

AusAID has confirmed an investigation is under way into allegations that education scholarships, known as Australia Awards, were being on-sold for profit by corrupt officials in Afghanistan.

AusAID said GRM International, which had managed the program, was conducting an independent investigation after losing the $80 million contract when the allegations were raised in August.

However the new manager, US firm International Relief and Development, is itself subject to a fraud claim involving US aid.

AusAID boss Peter Baxter said he had expressed “strong concern” to the head of IRD that AusAID was not told about that allegation. He said the level of fraud activity had halved across its programs but it was investigating 178 “active” allegations.

Meanwhile, concerns have been raised that hundreds of millions of dollars are being wasted on useless climate change programs.

In one case Papua New Guinea’s Forestry Minister Patrick Pruaitch wrote to his Australian counterpart Senator Joe Ludwig to complain that PNG was not consulted before Australia engaged US-based environmental organisation The Nature Conservancy to help deliver a $6 million sustainable forestry program.

The PNG government said the decision could have “serious ramifications” for the livelihoods of local communities.

“We are not happy with the manner in which the project has been formulated,” Mr Pruaitch wrote on January 18. “Consultation and needs analysis have not been undertaken to capture the requirements of the (PNG) government.”

It comes after opposition whip Warren Entsch blamed AusAID cutbacks in PNG health funding for a rise in tuberculosis cases, which had spread to Australia. The Coalition has said it would redirect aid funding to Australia’s East Asian and Pacific neighbours.

(Source: Steve Lewis and Lisa Cornish, News, 11 March 2013)

Filed Under: Corruption, Fraud Investigation

False invoice scam nets $650,000 from Curtin University, Perth

15 February 2012 By

A Perth woman has been jailed and another is facing a similar outcome for their respective roles in a “criminal enterprise” that netted about $650,000 from Curtin University.

Curtin University victim in false invoicing fraud

Joy Angela Sanderson, 47, from Maylands, was today sentenced to 18 months behind bars for laundering more than $100,000 from the university, two years ago.

Her accomplice Tania Carter is facing an even longer jail-term after pleading guilty to 401 charges of stealing a total of about $650,000.

The court heard Ms Carter – Sanderson’s former business manager – drew up false invoices on behalf of Sanderson’s company and submitted them to Curtin University.

The university unwittingly paid the invoices, with the money transferred to Sanderson’s company.

Sanderson then passed on majority of the money to Ms Carter, but retained $22,796 to pay for a holiday and some bills, the court heard.

The ongoing fraud was not detected for nine months, before the university lodged allegations with the Corruption and Crime Commission.

During Sanderson’s sentencing today, District Court Judge John Wisbey said the pair had been involved in a criminal enterprise and imprisonment was the only suitable punishment for Sanderson.

Ms Carter is yet to be sentenced, with her next court appearance scheduled for Friday.

(Sourced: Courtney Trenwith, WA Today, February 14, 2012)

About Rushmore Forensic

Andrew Firth is a director of Rushmore Group. He has conducted numerous investigations and other forensic accounting engagements in Australia, Singapore, the UK, Thailand, Hong Kong, Vanuatu, and the USA.

He specialises in assisting people going through divorce and providing other forensic accounting services for commercial disputes.  He is a member of the Institute of Chartered Accountants and has appeared as an Expert Witness in numerous jurisdictions. Rushmore provides services to clients located in Perth and surrounding areas.


 

Filed Under: Corruption, Investigation Tagged With: , ,

Perth council employee jailed for fraud

15 February 2012 By

A local government employee in Perth who contracted $45,000 worth of council work to his company without disclosing he owned it has been given a 14-month jail sentence.

Perth Council worker contracted work to his own company

Antony John Patrick Greenwood, 46, pleaded guilty to committing 20 fraud offences when he worked at the town of Cottesloe between March 2010 and May 2011.

His admission came after the council referred the matter to Western Australia’s Corruption and Crime Commission for investigation.

The District Court in Perth heard that Greenwood was the council’s maintenance and conservation officer and in that position had prepared purchase orders and arranged contracts for his own company, Full Circle Design and Construction (FCDC).

Some of the $45,000 worth of contract work Greenwood completed, other work was completed by other contractors, and some of the work was not done, despite being paid for, the court heard.

Greenwood did not tell his employer that FCDC was his firm, though he had signed a code of conduct form saying he would seek permission to do any work outside his council job.

Greenwood has since reimbursed the council for money he received for work that was not completed.

In the District Court on Wednesday, Judge Allan Fenbury told Greenwood he had been involved in serious misconduct, abuse of trust and corrupt behaviour over a 14-month period and his offending warranted a jail sentence.

“This type of deceptive behaviour or corruption is difficult to detect and causes untold financial harm to our society” he said.

Judge Fenbury said he took into account Greenwood’s payment of restitution to the council but said suspending a jail sentence could give the impression that people might be able to buy their way out of prison.

He sentenced Greenwood to four months in jail on six of the fraud counts, 10 months’ jail on another 10 counts and 14 months on the last four counts, all terms to be concurrent.

With an effective sentence of 14 months, Greenwood will be eligible for parole in seven months.

(Source: WA Today, AAP, February 8, 2012)

About Rushmore Forensic

Andrew Firth is a director of Rushmore Group. He has conducted numerous investigations and other forensic accounting engagements in Australia, Singapore, the UK, Thailand, Hong Kong, Vanuatu, and the USA.

He specialises in assisting people going through divorce and providing other forensic accounting services for commercial disputes.  He is a member of the Institute of Chartered Accountants and has appeared as an Expert Witness in numerous jurisdictions. Rushmore provides services to clients located in Perth and surrounding areas.

Filed Under: Corruption, Investigation

Corruption inquiry into University of New England contracts

16 January 2012 By

The corruption watchdog will hold an inquiry into allegations of corrupt conduct at the University of New England (UNE).

Colin McCallum, campus services manager at UNE in northern New South Wales, is alleged to have corruptly solicited university contracts over a seven-year period.

The Independent Commission Against Corruption (ICAC) will investigate his alleged approval of false invoices submitted between December 2004 and April 2011.

The invoices were from a number of companies, including commercial cleaning contractor Quad Services, Sydney Night Patrol and Inquiry and Prosys Services.

ICAC will also investigate whether, between July and December 2010, Mr McCallum gave false and misleading information to his colleagues after corruptly arranging payment for the hire of UNE sports facilities for use by New England Rugby Union.

Public hearings will be heard before ICAC Assistant Commissioner Theresa Hamilton from January 23.

In a statement, the UNE later said it had referred the matter to ICAC for investigation.

“UNE will continue to fully co-operate with ICAC throughout their investigation and the forthcoming public inquiry” it said.

Source:  AAP, 16/1/12

 

Filed Under: Corruption, Investigation Tagged With: , , ,