As many as 100 subcontractors have been sacked as the federal government’s largest department conducts a massive internal fraud probe.
Their contracts were ripped up late last week as allegations of potentially criminal activity inside the Department of Human Services emerged.
Many of the subcontractors were supplied by a labour hire company to work on IT projects within the department.
“It appears there are a few ‘rogue operators’, but because of this breach they had to remove everyone,” a source told Fairfax Media.
“The department removed all of these people on the basis they had to protect the security of the system.”
It has been alleged these subcontractors, or the company acting on their behalf, falsified time sheets, faked invoices and provided misleading CVs and qualification records.
IT giant Fujitsu was one of the companies that engaged the hire firm to provide labour for a DHS contract.
“We have been contacted by DHS to advise that a small number of contractors engaged by a third-party contracting firm utilised by Fujitsu have been removed from the DHS contract,” a spokesman told Fairfax Media.
“We can confirm that these contractors are no longer engaged on any contract managed by Fujitsu.”
There is no suggestion of any wrongdoing on the part of Fujitsu.
Subcontractors under suspicion have been asked to attend interviews with investigators inside the department’s Tuggeranong headquarters.
“Five meeting rooms have been papered over for the purpose, with signs like ‘interviews in progress’,” a source said.
At least one public…
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