Staff steal millions from Government ministry

Public servants have stolen more than $2.2 million from the Ministry of Social Development in the past five years.

Figures released to the Herald show that there have been 35 cases of internal staff fraud at the ministry, which governs Work and Income, Studylink and Family and Community Services.

Chief executive Peter Hughes said most cases involved staff setting up their own benefit payments, receiving a benefit while employed by the ministry, colluding with other clients and tinkering with benefits for friends or family.

The offenders were mainly case managers, followed by contact centre customer service representatives, work brokers and support services staff.

Mr Hughes said the ministry had a zero-tolerance policy on staff fraud. In cases where fraud had been detected the employee was dismissed and the case referred to police while attempts were made to cover the money.

In the 2003/04 year seven employees were caught stealing $1.98 million from the ministry. Six of the cases involved frontline Work and Income staff. One was employed at the National Office.

The largest portion of that fraud related to an employee dismissed in August 2003 who generated 67 bonus invoices totalling $1.9 million over a 28- month period.

Mr Hughes said the ministry had an internal fraud policy and the number of cases was falling. Data matching was conducted across the ministry's systems to identify any staff receiving benefits they were not entitled to.

Between July and October of last year there were three cases, totalling just under $30,000.

The ministry has employed more than 7800 people since 2000. Mr Hughes said the total committing fraud was less than 0.5 per cent.