THE HON. JOEL FITZGIBBON MP
Minister for Defence
Tuesday, 03 March 2009
026/2009
INDEPENDENT AUDITORS TO REVIEW SPECIAL
FORCES SOLDIERS PAY
The Minister for Defence, the Hon. Joel Fitzgibbon MP, has provided details of
the action taken to ensure any remaining pay concerns of Australian Army
Special Forces soldiers and their families could be put to rest.
Following discussions between the Minister, the Chief of the Defence Force,
Air Chief Marshall Angus Houston and the Secretary of Defence, Nick Warner
a special investigation into the pay of the Special Forces soldiers will be
undertaken.
The CDF and the Secretary have been requested, by the Minister, to engage
an independent financial auditor to complete the task thoroughly and
efficiently.
The independent audit will be undertaken by KPMG, and will be led by KPMG
Partner Nick Baker. The audit will cost around $100,000.
“Although it is a significant amount it is a very small price to pay to ensure our
Special Forces soldiers are being treated fairly and receiving all that they are
entitled to,” said Mr Fitzgibbon.
The audit will be a focused examination with Terms of Reference to
determine:
The effect of the Defence Force Remuneration Tribunal’s (DFRT)
March 2008 determination on Special Forces soldiers and the reasons
for any adverse consequences;
How many soldiers had money deducted from their salaries as a result
of Defence's implementation of the DFRT's determination;
What amounts were taken from each and what was the total amount
recovered;
How many had recovery action take against them prior to October;
How many had action taken against them between October to the
present;
How many who had money recovered in each period have been
recompensed and by how much;
What was the total amount recovered;
What amount has been re-paid;
What was the effect of the Chief of Army's February 18 directive;
What action should be taken to remedy any outstanding pay issues;
What action should be taken to avoid similar events occurring in the
future; and,
Did any Special Forces soldier at any time during this period receive a
zero pay check resulting in him not being paid?
The first report from the auditors will be provided directly to the Minister by 10
March. The final report will be provided a week later.
“The objective of the audit is to settle absolutely, once and for all whether any
soldier had his pay deducted after my October directive that recovery action
cease,” Mr Fitzgibbon said.
In addition to the Independent Audit, Mr Fitzgibbon has directed Defence to:
Identify any soldiers who still had outstanding claims or concerns
relating to their pay and establish a system to have these cases
individually assessed and rectified;
Report back to the Minister on action taken in response to the
Government's instructions of October 2008 regarding soldiers' pay, and
identify any failures in the system that had prevented or delayed, or
could potentially prevent or delay, important policy decisions being
implemented quickly and correctly;
Provide and maintain access to an independent mediator to all SAS
and their families.
Recommend financial assistance services, where appropriate, if
soldiers – especially those serving overseas – requested help
managing their accounts;
Provide a plan on how the Department of Defence will improve its data
collection and management systems, technology, and administration to
ensure the recent situation is not repeated.
Media contacts:
Christian Taubenschlag (Joel Fitzgibbon):
02 6277 7800 or 0438 595 567
Defence Media Liaison:
02 6265 3343 or 0408 498 664
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