The federal government has started an investigation into 14 employment agencies suspected of rorting its multibillion-dollar job assistance scheme, as evidence mounts of the long-running program being routinely abused.   

The inquiry is the first stage of an industry-wide review into the false claiming of fees by providers contracted by Job Services Australia, a federal initiative.

The review is being overseen by Robert Butterworth, a former senior public servant appointed by the Minister for Employment Participation, Kate Ellis. His $40,000 contract will run until early May.


The audit was prompted by a Herald investigation that revealed the Catholic Church's employment arm had systematically defrauded the scheme by falsely claiming it had found positions for job seekers that they had found themselves.   

Under the welfare-to-work program for the longer-term unemployed, hundreds of agencies are paid fees for providing assistance such as workplace training. The agencies can also pay taxpayer-funded wage subsidies to reluctant employers to help sweeten the deal.   

Agencies that find, or ''broker'', more jobs for dole recipients are rewarded with higher fees and a higher star rating, which in turn makes future government contracts more likely. 

But in what has become a highly competitive industry, there is so much pressure on these agencies to survive, many lodge false claims to boost their revenue and maintain their ratings.   

A spokeswoman for Ms Ellis said the investigation would rely on a ''detailed review of financial and other documentation''.

The review is expected to show whether structural changes are needed to Job Services Australia and its contract with the private sector.

Industry figures have confirmed that abuse of the system is rife, especially false claims for fees and the improper awarding of wage subsidies from taxpayer funds.   

The government has not named the 14 providers under investigation. The spokeswoman said the findings and policy changes would ''be publicly communicated, subject to legal requirements''.

A copy of the letter to the 14 organisations - provided by Ms Ellis' office - warns that recovery of funds and ''further sanctions'' may result from the inquiries.

Official correspondence to the entire industry after the Herald's articles said some providers had already ''identified potential errors'' and ''reviewed their internal working practices''.

David Thompson, the chief executive of Jobs Australia Ltd, said the government needed to minimise incremental payments to agencies for organising training or interviews, and instead boost the ''outcome'' fee paid when job seekers genuinely found meaningful employment.

Do you know more? investigations@smh.com.au

Read more: http://www.smh.com.au/national/employment-agency-rorts-investigated-20120205-1qzue.html#ixzz1lZI8PsP2

Long over due....

One of the silliest ideas that Howard came up with was the Employment Agencies...

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If this is true it will be another indication of corruption in the most vile church practices that have been exposed.....Those who support the church should be the ones most outraged!!!

The more I study religions the more I am convinced that man never worshipped anything but himself.
Sir Richard Francis Burton (1821 - 1890)