NDIS investigates more than 300 tip-offs to fraud hotline

More than 300 cases of fraudulent or dodgy behaviour by providers and participants in the National Disability Insurance Scheme have been reported.

The cases were raised with the National Disability Insurance Agency via tip-off lines

More than 300 cases of fraudulent or dodgy behaviour by providers and participants in the National Disability Insurance Scheme were reported to specialist hotlines in the last financial year.

In the year to July, 313 cases were raised with the National Disability Insurance Agency via tip-off lines, ­according to documents obtained under Freedom of Information laws. Of these, about 100 were classified as “alleged fraud” and more than 70 as “sharp practice”, a term used to ­describe cunning or dishonest ­behaviour within the law.

The agency did not reveal details about the matters “in the interests of protecting the integrity of the agency’s assessment processes” and any criminal or civil investigation. “All alle­gations, regardless of their source, receive an initial ­assessment. Where a matter might be fraud, a more detailed assessment is conducted … if appropriate, a formal investigation is conducted by the agency,” a spokeswoman said

There were almost 97,000 participants in the NDIS at the end of June, and numbers have risen since to more than 120,000. The scheme will eventually reach 460,000 people with disabilities and involve a vast marketplace of support providers, both organisations and sole traders.

Last year, the Australian Nat­ional Audit Office warned there were few checks and balances within the scheme. “The (audit office) ... noted that there was insufficient documentary evidence to demonstrate ­quality-assurance processes over the integrity of decisions made concerning provider registrations, participant identity or eligibility and participant plan approvals,” the ANAO said.

A key issue is for those participants who manage their own support plans and funds.

The NDIA requires these people only to keep receipts for their plans, without any overarching “compliance ­activities”.

The audit office is reviewing fraud-protection measures within the NDIS and is due to report in September. More than $10 billion has been committed for support plans since the scheme began.

The audit will monitor whether the NDIA has implemented effective strategies to prevent fraud, ­effectively detects and responds to fraud, and (whether the agency) has implemented effective ­arrangements to oversight, monitor and report on its fraud control arrangements.

The NDIS has been in start-up mode since July 2013 but each state and territory has responsibility for oversight of regulations, quality and performance of providers under the scheme. That will begin to change from July when the federal government’s four-year, $209 million NDIS Quality and Safeguards Commission begins, covering NSW and SA first and the remaining states in 2019 and 2020.

The new bureaucracy will be led by former NSW public service commissioner Graeme Head, who was announced as commissioner shortly before Christmas. Christian Porter, who was social services minister at the time, said: “This is a very important time for the commission, which will play a key role in ensuring the success of the NDIS. This new national regulator will focus on capacity building and development for both participants and providers, as well as hold compliance and enforcement powers.”