The integrity chief for the NDIS says nine out of 10 plan managers surveyed showed “significant indicators of fraud” including using scheme money for drugs and alcohol.
Already a subscriber?The National Disability Insurance Scheme integrity chief says nine out of 10 plan managers surveyed showed signs of fraud and the justice system would be overwhelmed if all the scams carried out on the $44 billion program were prosecuted.
“These are not genuine providers, not people who should be in business, not people who should be allowed near government schemes of any kind,” he told a Senate estimates committee late Monday night. The industry group representing mostly larger plan managers, Disability Intermediaries Australia, said its members abide by a professional standards code. The group has called for better accreditation for the long tail of smaller managers who service less than 100 participants.
Mr Dardo said a “very significant” number of providers had been found to be selling drugs to participants. Asked which drugs and if it included heroin, cocaine, speed and ice, Mr Dardo said: “You name it, it’s on the list.” Mr Dardo also said up to 5 per cent, or $2 billion a year, was being spent in error. This included $20,000 holidays and in one instance, a $73,000 car.
The interim commissioner of the National Disability Insurance Scheme Quality and Safeguards Commission, Michael Phelan, said the 150,000 unregistered providers were the critical issue.
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