Security Update – 4 June 2009

The Defence Minister, Joel Fitzgibbon, resigned on 4 June amid increasing concerns regarding the misuse of his position. Fitzgibbon’s ministerial position had become untenable following recent allegations relating to his brother’s insurance company, NIB Health.

The Minister was forced to admit this week that he had failed to disclose a night’s hotel accommodation paid for by the insurance company, of which Mark Fitzgibbon is the chief executive. Mark Fitzgibbon was also allowed to use the Defence Minister’s office for a business meeting, while Major-General Paul Alexander, who heads up the defence health services, told a parliamentary committee that he was instructed to attend a meeting at which the NIB Health chief was present.

Fitzgibbon’s reforms in spending had proved unpopular with some elements of the Defence department and he had described defence officials as incompetent with regard to their handling of a pay dispute within the Special Air Service Regiment. The subsequent rift which emerged between Joel Fitzgibbon and his department widened after it was revealed that an official from the Defence Signals Directorate hacked into Fitzgibbon’s office computer as part of a probe into the minister’s relationship with the Chinese-born businesswoman, Helen Liu. Fitzgibbon subsequently admitted that he had accepted two paid trips to China from Ms Liu. Ms Liu was herself under investigation regarding her links to the Chinese government. A 2002 report by the World Federation of Chinese Associations praised Ms Liu for her ‘good relations with state leaders’ and said that she ‘accurately passed new Australian policies and moves towards China to relevant domestic parties’.

International Operations Group - Advice

Cases of governmental and corporate fraud are set to increase during 2009 as economic pressures build during the global financial crisis. With fraud levels rising, it is more important than ever that organisations have secure and robust internal controls and risk management systems. Businesses and government departments are advised to expand their teams working on fraud prevention and detection to prevent excess losses and be in a strong position for the economic recovery.

Steps in the establishment of a comprehensive anti-fraud program include reviewing current internal security procedures, conducting risk assessments, implementing fraud monitoring, detection and control procedures, and promoting an anti-fraud stance. Once a fraud system has been installed, it is vital that it is regularly reviewed and maintained to ensure that it remains effective.

International Operations Group - Services

International Operations Group provides intelligence and security support for corporate and individual clients across the globe. Our team includes experienced specialists in fraud detection, fraud recovery and fraud risk management. Please email us at intel@interopsgroup.com or telephone us on +61 2 8003 3933 for additional information or confidential support.

For more information on our fee-based intelligence updates or bespoke reporting, please email Rob Stevenson - rob@interopsgroup.com. Rob can also be telephoned on +61 [0] 420 244 909.