Chief of NDIS provider did time for fraud

A woman once jailed for fraud now helms a registered provider under the $22 billion National Disability Insurance Scheme.

 

A woman who was convicted of fraud after stealing more than $80,000 from a government ­insurer is now at the helm of a registered provider under the $22 billion National Disability Insurance Scheme which was ­recently ordered to repay money to a client.

Michelle Fay McPhee, 47, pleaded guilty to a charge of “stealing by clerks and servants” after taking tens of thousands of dollars while an employee of the government insurer WorkCover. She served six months of a three-year prison sentence.

Ms McPhee is now one of two directors of the Bundaberg-based Integrated Disability Support Services Pty Ltd, which repaid hundreds of dollars to a participant earlier this month after his mother raised concerns about incorrect claiming.

The company, which Ms McPhee runs alongside her daughter and co-director Kahli Olesen, 24, was found to be charging full cancellation fees for appointments even if they were told before 3pm the day before, contrary to rules set out by the National Disability ­Insurance Agency.

The complaint, by local mother Cathy Madsen on behalf of her son Jason McKenzie, raised eyebrows within the NDIA which, at least at the regional level, was aware of Ms McPhee’s fraud conviction but was unable to prevent IDSS offering taxpayer-funded services.

An email trail obtained by The Australian between the disability agency and McPhee gives the provider the benefit of the doubt and even recommends it as “an example of a Provider with Great Quality Improvement Practices”.

“With the introduction of new schemes (there) are often some misunderstandings of some of the finer details and expectations on how services will operate,” NDIA Queensland ­assistant director Peter Butler wrote to Ms McPhee on January 31. “Michelle, I have spoken with our finance team about how you repay this money back into Jason’s plan and they are drafting a ‘step by step’ task break down for your account team to follow.”

Ms McPhee responded the next day by announcing she was investigating how much money was owed and that changes had been made. “We have reviewed the terms on our agreements to ensure the correct information is being provided to our participants,” she said.

A spokeswoman for the provider told The Australian that IDSS “values integrity and ­accountability”.

“We regularly conduct internal audits that meet, and exceed, our regulatory obligations,” the spokeswoman said. “In the event a concern is identified, we act swiftly and appropriately to rectify the matter.

“We are confident that all previous concerns have been managed well, in co-operation with relevant authorities, and to the satisfaction of all stakeholders involved.”

Integrated Disability Support Services is still listed as a registered NDIS provider.

A spokesman for the NDIA said it did not comment on specific investigations.