FRAUD SQUAD AXED

Specialist team which put away Xana Kamitsis will be disbanded by Labor

THE specialist team of prosecutors that put away fraudster travel agent Xana Kamitsis and corrupt CLP staffer Paul Mossman will be disbanded after Labor refused to extend its funding.

In his annual report, tabled in Northern Territory parliament last week, Director of Public Prosecutions Jack Karczewski QC warned the funding cut could undermine the agency’s ability to prosecute corruption charges referred to it by ICAC.

“This decision not to provide ongoing funding is regrettable . . . and is shortsighted, particularly in light of anticipated referrals for advice and prosecution which this office expects to receive from the Independent Commissioner Against Corruption,” he said.

Mr Karczewski said the publicity surrounding highprofile cases prosecuted by the fraud unit had resulted in more reports of white-collar crime to NT Police.

Among the cases the unit prosecuted over the past years was the Department of Chief Minister IT staffer Best Okwa, who was running an identity scam from behind his desk at work. The unit earlier this year also prosecuted John Zvimba, a Royal Darwin Hospital procurement manager who defrauded the taxpayer of more than $150,000.

The cutback in resources comes despite a series of complex white-collar prosecutions in the pipeline, including the widespread rorting of the Government’s Indigenous Employment Provisional Sum, a scheme that rewarded government contractors who employed a certain percentage of indigenous employees.

Other upcoming prosecutions include the first “Ponzi scheme” detected in the Territory, which allegedly saw would-be investors rorted of an estimated $1.7 million.

Complex investigations into the Pensioner and Carers Travel Concession Scheme – which the fraud unit provides legal assistance to – remain ongoing, Mr Karczewski’s report says.

“Complaints about fraudrelated crime continue to increase as the public becomes more aware from publicity surrounding ongoing prosecutions that police and the DPP are interested in and capable of investigating such complaints,” Mr Karczewski said.

Deputy Opposition leader Lia Finocchiaro agreed with Mr Karczewski’s description of the cuts as “shortsighted” and has concerns the Territory ICAC is going to be run on a shoestring budget.

“This is yet another in a long line of cuts by the Labor Government to frontline services in the Territory, following on from cuts to police, corrections and health,” Ms Finocchiaro said.

IT’S hard to justify closing a program designed to stop people defrauding taxpayer dollars.

While it can seem like it’s saving money in the short term by taking its cost out of next year’s budget, overall the taxpayer will pay more.

How? The specialist team of lawyers tasked with investigating instances of fraud have prosecuted some high-profile cases, which has put fear into the heart of anyone considering trying to scam money. Without that public awareness of crimes, there could be fewer people making complaints, and more may be tempted to make the wrong decision. Not only could more people be defrauded, the cost of more prosecutions will only go up.

We need a strong, open and transparent system which can stop potential fraudsters in their tracks.

While the cuts come as the Independent Commissioner Against Corruption (ICAC) Act falls into place at the end of this month, it is not necessarily enough.

If the ICAC is to work it must be done properly and funded appropriately. It cannot be stymied by a lack of investigative powers stemming from a lack of budget.