The Daily Telegraph by virtue of its claim on 4 April 2011 that it had gained exclusive access to the institute's landmark report (despite the fact that the AIC had published the same on its official website) stands out in reporting this matter.
This newspaper makes much of fraud by welfare recipients and really only briefly addresses fraud by crooked public servants. News Limited journalists appearing more interested in theft of office products such as printer toner and photocopying paper, rather than other forms of public service fraud which are more dangerous to Australian citizens. Indeed this newspaper goes so far as to lump the $600 million total in fraud against the Commonwealth into the welfare and other government payments category, almost inviting readers to erroneously suppose social security fraud actually reached this amount in the reporting period. When it comes to financial fraud, the fact that in excess of $2,970,000 was recovered from public service employees perpetrating entitlement and financial fraud is virtually ignored, along with the fact that losses totalled over and above recovered amounts totalled $2.8 million and that many of those employees found defrauding the Commonwealth were not sacked.
What is made apparent in this AIC report (and not rated as worth a mention by journalists) is that internal fraud by public service employees:
a) is under-reported because the department/agency involved frequently decides to redefine fraudulent activity as procedural incidents which are not included in information supplied to the Commonwealth and there is little in the way of internal incident compilations which would assist in identifying fraud over time or the financial cost of this fraud;
b) much of the identified fraud involves improperly accessing personal information about others;
c) at least 3,171 public service employees were suspected of fraud in 2008-09; and
d) of these suspects 1,842 were classified as improperly accessing information and 203 were involved in corruption (including abuse of power, accepting bribes/kickbacks and collusion/conspiracy).
Given these facts, one might have hoped for a more comprehensive media analysis on the subject of fraud against the Commonwealth.
Excerpts from the AIC report:
# Overall in 2008–09, internal fraud was found to be a more significant risk to Australian Government agencies, with 48 agencies (32%) experiencing internal fraud and 45 agencies (30%) experiencing external fraud. In terms of the number of fraud incidents, however, considerably more incidents related to external fraud (n=797,327) than internal fraud (n=3,371). Yet while external fraud affected more agencies generally, the fraud types that resulted in the most incidents tended to be specific to only a small number of agencies. Of the two external fraud types that produced the largest number of incidents—‘fraud relating to social security’ and ‘fraud relating to visas and citizenship’—these were reported by only two agencies each. While total incident numbers were substantially lower, this pattern was also true for internal fraud, where the most frequent incident type—‘obtaining or using personal information without authorisation’—affected just seven agencies.
# fraud involving obtaining or using personal information without authorisation accounted for 44 percent of all internal fraud reports (n=1,481 out of 3,371 reported incidents).
# Internal fraud involving ‘accessing information via a computer without authorisation’ was reported by 17 agencies.
Click on image to enlarge # In the 2008–09 financial year, Centrelink conducted nearly 3.9 million entitlement reviews that resulted in 641,504 payments being cancelled or reduced and generating customer debts totalling $536.2m (Centrelink 2009).
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