NDIS funds spent on drugs as ‘90 per cent’ of support co-ordinators commit fraud

Agency officials have revealed evidence indicating up to 90pc of NDIS plan managers were committing fraud.

NDIS Minister Bill Shorten.

Billions in NDIS funds are being used to buy illicit drugs and other items “not consistent” with participants’ plans, as agency officials revealed evidence indicating up to 90 per cent of plan managers were committing fraud.

Labor has committed to reducing the growth of the NDIS from about 16 per cent to 8 per cent a year through a number of measures to improve efficiencies, crack down on fraud and create a separate stream of health and education supports for people with milder disabilities.

However, NDIA head of fraud and integrity John Dardo said up to $2bn of the $40bn a year scheme was being inappropriately spent on items including expensive cars, holidays and even drugs including cocaine and ice.

When asked what kinds of drugs were being bought, Mr Dardo said “you name it, it’s on the list”.

“There would be thousands of cases where participants are claiming things that are not consistent with their plan,” Mr Dado said.

“Examples just in the last week (are a) $20,000 holiday, a $10,000 holiday.

“We had a participant that bought a car, brand new, $73,000. The money was processed overnight.”

He said that participants who had been approached by the agency over such purchases “were willing to repay the money”.

On the behaviour of support co-ordinators, Mr Dardo said there was a “significant” number who were not “acting in best interest of participants”.

“There’s case, after case, after case … 90 per cent of our plan managers that manage between naught and hundred plans, that’s out of 1000 plan managers, have significant indicators of fraud,” he said.

“We’ve done the analysis on their claiming behaviours … the bar needs to be lifted.”

Mr Dardo said he was not able to audit every single plan manager, declaring “we just cannot prosecute or audit our way out of this”.

NDIS Minister Bill Shorten said “crooks” misappropriating money from the scheme had “no place in it”.

The evidence followed Services Australia revealing in Senate estimates on Monday a speechwriter for Mr Shorten was awarded a $620,000 contract over two years.

Mr Shorten said: the hiring of a speechwriter was done by Services Australia. I had no idea what the payment was”.

“So, if you’re trying to link me to that, you know, good luck,” he said on A Current Affair.

“The point about it is, the person involved who’s a speechwriter does a very good job. I’m not responsible for negotiating a contract.”

The Coalition pursued the government following the revelations in question time on Tuesday, with opposition NDIS spokesman Michael Sukkar asked why “the minister allowed drugs to be trafficked to the most vulnerable under the scheme that you designed”?

NDIS minister Bill Shorten said the NDIS needed to get “back on track” as he accused the Coalition of failing to crack down on fraudulent providers.

Mr Shorten said Labor was acting to fix the scheme accusing the former Coalition government of “doing nothing”.