Fraud Control and Investigations Branch

The Inspector General of Defence (IGD) heads the Fraud Control and Investigations Branch (FCIB). The IGD’s primary role is to provide assurance and advice to the Secretary, the Chief of the Defence Force and the Chief Executive Officer of the Defence Materiel Organisation regarding the execution of their responsibilities. A critical part of the IGD’s role is to guard the standards of behaviour within Defence. This includes promoting ethics and fraud awareness within Defence, developing and monitoring the Defence fraud control program to prevent, detect and respond to fraud, and to recover fraudulently acquired money and assets.

The IGD has primary responsibility for the following functions within Defence.

Defence Public Interest Disclosure Scheme

The Public Interest Disclosure Act 2013 (PID Act) commences on 15 January 2014. As the ‘Principal Officer’ in Defence, the Secretary has delegated all powers and functions under the PID Act to the IGD. The IGD is responsible for managing and operating the Defence Public Interest Disclosure Scheme (the Scheme).

The Scheme will enable 'public officials', including all currant and former Defence personnel (military, APS, contractors) and members of the public accepted under the PID Scheme, to disclose information about suspected wrongdoing or maladministration within Defence. Consistent with the PID Act, the purpose of the Scheme is to provide a policy framework:

• through which any public official can make public interest disclosures relating to suspected wrongdoing and maladministration within Defence;
• within which public interest disclosures can be managed; through consistent and standardised procedures and processes;
• for providing anonymity and confidentiality for public official who make public interest disclosures;
• protecting any public official from reprisals resulting from making a public interest disclosure; and
• for the conduct of investigations into public interest disclosures.

For more information go to: http://intranet.defence.gov.au/ig/sites/fcib/comweb.asp?page=43772 (Defence Restricted Network users only)

Defence Whistleblower Scheme

The Defence Whistleblower Scheme (DWS) has been in operation since 2002, and has enabled any person, including members of the public to report alleged misconduct or unethical behaviour involving a member of the Australian Defence Force; an Australian Public Servant employed by Defence; or a supplier of goods and services to Defence. On 15 January 2014, the DWS will no longer take these reports, as the commonwealth PID Act will commence. However, the DWS will continue to manage and report outcomes on all issues that were reported prior to 15 January 2014.

Fraud Control Planning

The Defence Fraud Control Planning program implements the Commonwealth legislative and policy framework for fraud control. Successive fraud control plans outline the strategy and methodology on which fraud risks assessments and treatments are based. Defence fraud control plans detail the various fraud control strategies Defence applies to protect Commonwealth resources under its control.

Defence fraud control plans include:

• thorough and ongoing assessments of risks;
• development and implementation of policies, processes and systems to assist with the prevention, detection and investigation of fraud;
• application of appropriate prosecutorial, civil, administrative and disciplinary action to remedy the harms from fraud;
• recovery of proceeds of fraudulent activity;
• training of all employees and relevant contractors in ethics and fraud awareness and specialised training of employees in fraud control activities; and
• external scrutiny of fraud control activities in conjunction with the Chief Audit Executive, to test fraud risk controls, inform ongoing risk assessments and responses to detected fraud.

Investigations

Consistent with the Commonwealth fraud control legislative and policy framework, investigations within Defence may include referral of serious fraud matters to the Australian Federal Police (AFP); investigation by appropriately qualified Inspector General of Defence personnel under the criminal law; or investigation by the Australian Defence Force service police organisations under the Defence Force Disciplinary Act 1982.

Resolution of less serious fraud matters may occur as misconduct or service investigations through relevant military or civilian disciplinary frameworks.

Ethics and Fraud Awareness

Training programs are developed for ethics and fraud awareness to take into account issues arising in the military, for APS employees and for service providers. It is mandatory for all Defence personnel to undertake this training regularly. The IGD operates an advice hotline to respond to any queries on ethical matters affecting Defence (phone. 02 62664162 and email ethics@defence.gov.au).

The IGD also produces a regular magazine titled ‘Ethics Matters’ and maintains an internal website to promote ethics and fraud awareness in Defence.

Recovery

The IGD Recovery Unit pursues recoveries of money that has been lost through fraud activities that may have occurred across the Defence organisation, through both administrative and civil means. Consistent with the Commonwealth statutory financial framework, Defence has a mandatory obligation to recover government money, gained by through fraud activities.

Data Analysis and Forensics

Data Analysis and Forensics provides forensic support, data mining and analysis to assists auditors and investigators, and to support the Strategic Intelligence Threat Assessment Capability that has been developed to identify enterprise-wide fraud threats to Defence.

Defence Policing and Security Management System

The Defence Policing and Security Management System (DPSMS) is the investigation case management application mandated for use by Defence Investigative Authorities. DPSMS records where offences have occurred and the consequences to Defence personnel once the offence has been investigated.

DPSMS is also the mandated system for the receipt, assessment, allocation, investigation of, and reporting of, public interest disclosures within Defence.