Legislative Council Wednesday 18 March, 2020
Ms FORREST question to LEADER of the GOVERNMENT, Mrs HISCUTT
(1) With regard to financial losses sustained by TasPorts' subsidiary, Bass Island Line, and the 2019 incident of fraud, did TasPorts have a risk register prior to this event? If yes, when was TasPorts' first fraud risk register implemented?
(2) Do you have any other incidents of fraud being detected? If not, what measures has TasPorts taken since its inception to prevent fraud? Have any other instances of fraud been detected?
(3) Did Bass Island Line have a risk register prior to this event? If yes, when was Bass Island Line's fraud risk register initially implemented? Have any other instances of fraud been detected? If not, what measures has Bass Island Line taken since inception to prevent fraud and have any other instances of fraud been detected? Of the $352 516 subject to the fraud event, including the $99 475 recovered last year, what is the total amount that has been recovered?
(4) Is TasPorts confident that appropriate measures are now in place to prevent and/or reduce the risk of fraud?
Mr President, I thank the member for Murchison for her question.
(1) TasPorts' fraud and reputation risk register was first established in September 2011. In addition to the register, TasPorts also has in place a fraud and corruption policy, as well as a fraud and corruption procedure, which were both implemented in November 2012. All three documents are subject to regular review under TasPorts' governance framework.
(2) Bass Island Line adopts the policies, procedures and registers of TasPorts as its parent company. TasPorts' risk register includes items specific to Bass Island Line. However, in October 2018, Bass Island Line adopted its own risk register.
(3) TasPorts recovered $99 475 through financial institutions with an additional $50 000 recovered from insurers. The total amount recovered is $149 475. In response to this fraud incident, TasPorts engaged a third party to conduct an audit of the event. The company also completed an internal investigation on the incident. The external audit report confirmed a control framework was in place at the time of the incident to prevent and detect fraud, and that the processes to approve purchase orders and pay suppliers was sound.
It was determined, however, that in this instance the controls were not carried out effectively. Based on findings and recommendations made in both internal and external audit reports TasPorts has implemented several control improvements.
(4) TasPorts is confident that appropriate measures are in place to reduce the risk of future fraud events.