A man from Sydney has been charged in relation to allegations of multimillion dollar fraud against the National Disability Insurance Scheme.
Cases such as this highlight concerns about fraud being committed against this taxpayer funded system.
Police claim that the man was using a number of businesses that provide support for people with a disability to lodge false claims for the NDIS for a prolonged period of time.
He was arrested in Sydney for a number of offences linked to fraud and dealing with the proceeds of crime.
Allegations include charging for services that were never delivered exaggerated billing and the misuse of participant information without authority, according to the allegations by the investigators.
This was revealed in a joint investigation that analyzed various financial transactions, business registrations and NDIS payment information as reported by authorities.
The man is scheduled to appear before the court in Sydney and according to the police there are possibilities of more charges and arrests. There is no plea as yet.
The situation comes at a time when the government is stepping up campaigns to reduce fraud in the NDIS set to provide services to over 600,000 Australians at an estimated cost of tens of billions of dollars to the Commonwealth every year.
Though very few of them engage in fraudulent activities it has been estimated that the complexity of the NDIS program makes it vulnerable to fraud.
The sustainability of the NDIS is a major focus for the federal government with reforms underway to improve registration of providers, compliance and data matching between agencies.
Then came allegations of fraud that put further pressure on the government to ensure its reform is working to contain costs that are growing faster than projected.
Officials state that strict legal action has become imperative in ensuring that the intention to save public money does not affect confidence for all players participating in the system.
Fraud might affect the market by reducing the cost of care for disabled individuals.
Cases of fraud against the scheme from the past have been used by the opposition to criticize the government’s control of the scheme.
While disability groups have warned of policies that may inadvertently hinder the scheme’s participation and increase bureaucracy.
They urge policies focusing on the offenders without discouraging the smaller providers.
For those in the disability sector the recent fines serve as an indication of ever tightening compliance obligations.
There is an appeal to keep records in order and to be able to substantiate any allegations of improper conduct.
The police said that investigations into NDIS related fraud are ongoing and encouraged anyone who has information to come forward.
The case that has been charged against the man in Sydney will be dealt with in court where the prosecution will have the burden of proving guilt beyond a reasonable doubt.
