ID :
109833
Fri, 03/05/2010 - 07:25
Auther :

Govt seeks probe of insulation rorting

The federal government is set to order an urgent, high-level investigation amid new
claims its botched home insulation scheme was rorted by operators possibly linked to
organised crime.
Frontbencher Greg Combet, who is in charge of cleaning up the insulation mess, has
written to the federal auditor-general pressing for a full, fast-tracked audit.
The insulation scheme was canned after it was linked to the deaths of four
installers, at least 93 house fires, and safety and quality problems potentially
affecting hundreds of thousands of homes.
The federal opposition says a new problem has emerged. It alleges dodgy operators
claimed the government's rebate of up to $1600 per roof without installing any
insulation.
Opposition climate spokesman Greg Hunt said some householders had received letters
from the government asking if they were happy with their new roof insulation - which
had never been installed.
Names had been taken out of phonebooks and signatures forged, and "Peter Garrett
just wrote the cheque", Mr Hunt said, referring to the federal environment minister
who was in charge of rolling out the scheme.
"It now appears as if there is systemic fraud and problems of phantom insulation
under the disastrous home insulation program," he told reporters in Melbourne.
Mr Hunt raised the possibility of criminal fraud and an organised crime link.
Mr Combet, the junior climate change minister, expressed disgust at the claims of
rorting.
"I am disgusted by the reports of alleged fraudulent conduct associated with the
Home Insulation Program," he said in a statement.
Mr Combet promised to take all appropriate steps to investigate the fraud
allegations and is taking advice on how to proceed.
The auditor-general, Ian McPhee, has yet to decide whether he will undertake an audit.
Mr Combet urged him to make a decision "as a matter of high importance", saying if
an audit goes ahead it should be "expedited".
Three instances of alleged insulation fraud have been referred to Australian Federal
Police.
Mr Garrett has been stripped of responsibility for the scheme.

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