Major fraud inquiry at remote clinic

The health service where the alleged fraud took place offers treatment for alcohol and drug addiction among aboriginals.  Source: PerthNow

AN Aboriginal health service is at the centre of a major fraud investigation.

The Sunday Times can reveal a former staff member from the Mawarnkarra Health Service, in the state's North-West, is being investigated over the alleged theft of $500,000 over three years.

It's understood the employee left the health service last year.

Det-Sen-Sgt Dom Blackshaw from the major fraud squad confirmed detectives were assessing the complaints, but could not comment on the allegations.

"It does relate to the theft of funds from that corporation," Sgt Blackshaw said.

Mawarnkarra was established more than 20 years ago to deal with health and social issues in the remote community, about 40km north of Karratha.

It underwent a major refurbishment in recent years and is now the biggest medical facility in the town, offering alcohol and drug programs.

It is considered a vital health service for residents in Roebourne and nearby towns.

The Sunday Times understands police searched the home of the former worker last year and seized documents and computers, after concerns were raised about the money.

"There's something seriously wrong," a whistleblower said. "This is here for the community."

Recent financial statements show the clinic received millions each year in state and federal government grants.

Mawarnkarra Health Service acting chief executive Joan Hicks said the organisation had carried out an internal investigation into "the finances of the organisation" and the findings had been handed to WA Police.

"As the matter is a subject of a current police investigation, Mawarnkarra Health Service is not in a position to make any further comments," Ms Hicks said. "Mawarnkarra Health Service continues to be the vibrant organisation that it is, providing sound governance and leadership in primary health care, ensuring a high standard and quality of care is delivered to the Aboriginal people and wider community of Roebourne."

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