17/04/2019 - 15:30

Ausdrill sacks employee and alerts police over $10m fraud

17/04/2019 - 15:30

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Ausdrill has sacked an employee and reported them to police after discovering approximately $10 million of allegedly fraudulent payments over eight years.

Ausdrill says it uncovered the alleged fraudulent payments during routine compliance with its policies and procedures.

Ausdrill has sacked an employee and reported them to police after discovering approximately $10 million of allegedly fraudulent payments over eight years.

The Canning Vale-based mining contractor said in a statement to the ASX that it appeared the former staffer had authorised and concealed payments to an "unrelated invalid supplier".

It said it uncovered the alleged fraudulent payments during routine compliance with its policies and procedures, and it then launched an internal investigation and appointed audit firm EY to conduct a thorough forensic review.

Ausdrill dismissed the employee and reported the matter to the police.

Ausdrill managing director Mark Norwell said the company would not tolerate fraudulent behaviour.

“I am satisfied that immediate action has been taken upon becoming aware of the situation,” Mr Norwell said.

“We are announcing this matter in accordance with our approach of full transparency.

“We are now completing a comprehensive review to understand how this long-term sophisticated fraud occurred and how we can further enhance Ausdrill’s systems and controls.”

Ausdrill declined to provide additional information to ensure the police investigation is not jeopardised.

The company said there would be no material impact on this year’s financial results.

 

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