‘Fraud’ exposes flaws in NDIS provider scrutiny

Officials concede they have no way of knowing whether new providers under the NDIS had committed taxpayer fraud.

Mohamed Osmar Omar who allegedly defrauded the NDIS of more than $480,000 with his lawyer Giselle Nehma. Picture: Tessa Akerman

Department of Social Services ­officials concede they have no way of knowing whether newly registered providers under the National Disability Insurance Scheme have previously committed taxpayer fraud.

Mohamed Osman Omar, 36, was charged with allegedly stealing $480,000 worth of funding from the landmark scheme in just two months this year.

The Australian reported the Melbourne man was linked to a family daycare service that had taxpayer subsidies terminated in September for “fraud”.

NDIS chief executive Rob De Luca yesterday told a Senate estimates hearing “there are other (separate fraud) investigations under way” but no further ­arrests.

Department officials were unable to say whether registered providers had been vetted for defrauding the commonwealth.

“Who is checking that people who have already ripped off taxpayers aren’t getting another bite of the cherry,” Labor senator Murray Watt asked officials.

Department of Social Services secretary Kathryn Campbell said it was “different across different jurisdictions”.

“We are relying on state systems who have registered providers and I’m not sure we have a thorough understanding of whether they would have checked that or not,” she said.

Mr De Luca said there were “different levels of scrutiny” ­applied to providers depending on the type of service they wish to offer under the scheme.

State oversight functions are slowly being absorbed by the new NDIS Quality and Safeguards Commission and its commissioner, Graeme Head, said when it took over, providers would be “reregistered.”