Home' Defence Magazine : Issue 6 2009 Contents 34
more ethical and accountable
workforce is the vision of the
new-look Fraud Control and
Investigations (FCI) Branch,
which is headed up by the
Inspector General (IG).
The critical role that the Branch plays in
managing fraud control and promoting ethical
behaviour across the department has been
recognised by the responsibility for the internal
audit function now going to the Chief Audit
Executive, and a number of directorates being re-
shaped including the:
■ Directorate of Fraud Control Policy and Ethics
■ Directorate of Investigations and Recovery (DIR)
■ Directorate of Fraud Information Systems (DFIS)
■ Directorate of Data Analysis and Forensics (DDAF)
Looking back over the past decade or so, the
Inspector General Ray Bromwich said Defence has
good reason to be confident about its achievement
in the areas of fraud control and promoting
ethical behaviour, with the statistics painting an
“The number of investigations into fraud
related incidents has remained relatively constant
over recent years,” Mr Bromwich said.
“But at the same time, the yearly value of
known fraud in Defence and the DMO has been
steadily decreasing from an average of around
$1.6m to around $1.2m over the past five years.”
The results are encouraging, but Mr Bromwich
is adamant that no fraud should be tolerated
and complacency will emerge as a real threat if
Defence lowers its guard.
“While the value of fraud may seem
insignificant against the overall budget, $1.2m
of taxpayer funds is a significant sum that could
otherwise be applied to Defence objectives and
capabilities, not to mention the potential for
damage to our reputation when funds are misused
in this manner,” Mr Bromwich said.
The work that the IG has done on ethics has
recently been given international recognition,
with the UK Chapter of Transparency International
releasing a research report titled Ethics and
Business Conduct in Defence Establishments –
The Improvement of National Standards.
The report identified Australia as setting
best practice examples in a number of areas
and specifically mentioned the Ethics Matters
publication that IG’s produce.
“It is great news that our strategies and
processes are leading the way but there is always
room for improvement,” Mr Bromwich said.
“I want to make sure that we have fresh
approaches and new ideas about developing our
strategies to ensure relevancy and effectiveness
about the ethical standards expected within
Defence and its relationship with industry.”
Executive Director Fraud Control Policy and
Systems, Terry Riley, said that at any one time,
there are a number of on-going investigations into
allegations of criminal fraud with many successful
prosecutions being obtained.
“Some of these have led to offenders
receiving criminal convictions and in some cases,
lengthy custodial sentences,” Mr Riley said.
“One case involved the conviction of a former
APS employee and an external contractor for the
fraudulent removal in 2004 of approximately $1.5m
worth of aircraft parts.”
The Directorate of Investigations and Recovery
(DIR) conducts investigations into suspected
criminal fraud in a range of different areas, including
allegations of corrupt practices or behaviour,
collusive tendering, fraud, conflict of interest or lack
of probity involving Defences resources, including
personnel, property or premises.
DIR works hand in hand with the ADF
Investigative Service (ADFIS) and the Service police
organisations when conducting investigations—
sharing responsibility for the investigation of fraud
in Defence and the DMO.
“It is certainly not uncommon for DIR to
conduct investigations into allegations of fraud
against serving ADF members for prosecution in
civilian courts, particularly where serious fraud is
involved,” Mr Riley said.
“Recently DIR investigated an ADF
member’s fraudulent retention of $140 000 in
international campaign allowance to which the
InsPeCtoR geneRAl – DeFenCe
role refocussed By Leila Daniels
ABOVe: Defence employees have a clear process when bringing issues to the table involving
fraud and ethics. Photo: Corporal Chris Moore
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