Foreign cartels are ripping off the $44 billion dollar NDIS

A fraud taskforce has sounded an alarm over the infiltration of foreign cartels in the NDIS. Bikies are also suspected of defrauding the $44 billion dollar scheme.

Foreign criminals are suspected of infiltrating the $44 billion NDIS scheme, raising concerns about taxpayers being ripped off for false invoices and participants becoming victims of standover tactics.

A source with knowledge of rorts in the NDIS sounded the alarm about the international organised crime involvement.

Bikie gangs in Australia were also suspected of defrauding the system that is meant to provide care for some of our most vulnerable members of society.

And a source claimed that Mexican cartels were suspected of using the NDIS as a cash cow.

The National Disability Insurance Agency boss Rebecca Falkingham, who oversees the Fraud Fusion task force, confirmed that foreign organised crime was gaming the scheme.

Fraud accounts for 20 per cent, or $8 billion, of the NDIS’ budget. Picture: Mark Wilson

The Sinaloa cartel was run by Joaquin Guzman-Loera, also known as El Chapo. He was arrested in 2014. Picture: Susana Gonzalez/Bloomberg

Fraud in the NDIS is suspected of accounting for 20 per cent, or $8 billion, of its budget – more than the profits derived from Australia’s lucrative cocaine market, making it a key target for organised crime.

Ms Falkingham did not confirm which foreign groups were defrauding the NDIS, but members of the influential Sinaloa cartel were arrested in Sydney for drug importation last year.

However it is understood there are no active investigations into Mexican cartel’s involvement in the scheme.

AFP arrested a man for possession of more than 20kg of ice in Sydney last year. Picture: AFP

AFP officers seized 21kg of ice in total. Picture: AFP

Senator Maria Kovacic quizzed Ms Falkingham about foreign organised crime interacting with the scheme at a hearing at Parliament House last week.

“Senator, obviously those are discussions we can’t go into in much detail because they are all related to fraud Fusion Taskforce activity. Are you talking in relation to taxis or more broadly?’’ Ms Falkingham said.

“I think we have indicated previously that we are aware of those activities and our fraud team certainly has a number of cases on foot regarding those fraud issues.”

When pressed by Senator Kovacic who specifically asked: “So there is evidence of foreign organised crime?”, Ms Falkingham replied: “Yes”.

National Disability Insurance Agency boss Rebecca Falkingham confirmed that foreign organised crime was rorting the scheme. Picture: NewsWire / Martin Ollman

The Sinaloa cartel was run by Joaquin Guzman-Loera, also known as El Chapo, until he was jailed in the United States.

The cartel remains one of the world’s most influential crime groups.

Sinaloa cartel co-founder Ismael “El Mayo” Zambada was arrested in the US in July last year, alongside El Chapo’s son Joaquin Guzman Lopez.

A narcos tunnel was uncovered in a warehouse about 80 metres from the United States and Mexican border in 2023. Picture: Jason Edwards

Former NDIS Minister Bill Shorten cracked down on rorts in the scheme, with sweeping reforms.

However, sources who had seen intelligence about organised crime involvement in the NDIS said it was flawed from its inception in 2013.

They claimed that nothing was done to put in protections against fraud in the haste to provide services to participants.

That failure has been described as a crucial mistake because organised crime always finds a way to make an easy dollar, a source claimed.

The NDIA said in a statement: “As the NDIA CEO said at senate estimates the Agency is unable to comment on specific investigations so as not compromise the integrity of cases.

“The Fraud Fusion Taskforce and NDIA systems are cracking down on exploitation of the Scheme by international entities and are better equipped than ever before to disrupt, prevent and prosecute any criminals who attempt to exploit people with disability.

“We have absolutely zero tolerance for anyone seeking to exploit the NDIS and Australians with disability.”

Originally published as Foreign cartels are ripping off the $44 billion dollar NDIS