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Taxi Rort Exploits Disabled
29 March 2004

New South Wales, Australia — TAXI drivers have been routinely ripping off thousands of dollars each from a $15 million State Government subsidy aimed to make taxi transport affordable for the disabled.

An investigation by The Daily Telegraph using the Freedom of Information Act has found that theft from the scheme is now so bad Transport Minister Michael Costa has ordered a full review of ways to stop the thefts, including the use of smartcard technology.

In two of the more serious cases in 2002 and 2003, cab drivers were convicted in court on 43 and 58 breaches of the Crimes Act and fined $11,200 and $12,000.

More criminal charges are expected against other drivers. Dozens of others have had their driver authorities removed after they were caught out making false claims.

Under the Taxi Transport Subsidy Scheme, cab drivers charge disabled passengers only half the normal fare and then claim back the balance up to a maximum $30 though a docket reimbursement system akin to Cabcharge.

But a NSW Ministry of Transport document states an unknown number of cab drivers have "coerced" disabled passengers into handing over a large number of signed blank dockets so fictional journeys can be claimed.

There is also a fear some disabled passengers may have co-operated with the drivers and shared the profits.

The document stated that abuse of the scheme became apparent when an internal audit revealed the top five "passengers" would have had to have paid between $26,000 and $53,000 a year out of their own pockets on cab fares based on the claims they made.

In one case, the amount of subsidy claimed by a participant would require that person to use cabs a minimum of five times a day, seven days a week.

There are about 50,000 registered participants able to use the scheme. Between 12,000 and 13,000 people are considered regular users of it.

Mr Costa said last night there was no suggestion he would end the subsidy, but said: "More needs to be done to stop unprincipled operators from preying on those who rely on this scheme."

He said only "a few rotten eggs" were responsible for the fraud.

Source The Daily Telegraph © 2004
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