Department committed to improving outcomes

16 May 2007

Ms Patricia Scott, Secretary of the Department of Communications, Information Technology and the Arts, today welcomed recommendations from the Australian National Audit Office (ANAO) on how the administration of the Departments broadband programs could be improved.

The ANAO found that both the Higher Bandwidth Incentive Scheme (HiBIS) and Broadband Connect had met their objectives of providing metro-comparable broadband services to regional Australia, promoting competition among providers, and effectively targeting areas in regional Australia with the most need. The report has noted that the management framework for the programs was appropriate, and that the guidelines were comprehensive and provided a sound basis for the management and administration of the program.

The ANAO considers that the vast majority of funding has been paid to providers for valid claims. However, the ANAO has estimated that DCITA has paid between $10.6 million and $12.4 million to providers for invalid or inaccurate claims. The total amount paid under the program was $272 million.

The Department is committed to ensuring the effective use of funds on behalf of the Australian community. In a number of cases, including potentially fraudulent claims, we have already taken steps to recover funding wrongly paid. Where relevant, matters have been referred to the Australian Federal Police.

The report notes that automated checking processes and upgraded audit processes introduced during the life of the programs had improved the claims validation process and will help to reduce the likelihood and severity of potential frauds by providers in the future.

The Department agrees with the two recommendations in the report. The ANAOs constructive feedback has already been applied by the Department when setting up the recently announced Australian Broadband Guarantee program.

Media contact:
Fiona McLean
(02) 6271 1362