Nearly 200 daycare services across NSW, mainly located in southwest Sydney have been shut down with some being linked to bikie gangs, fraud and funding from overseas terrorism.
The Red Roses FDC Company was raided by police last month as part of an alleged $4 million fraud on the Commonwealth Child Care Subsidy Scheme.
During last month’s raids across southwest Sydney, Red Roses Family Day Care director Alee Farmann, 49, and two women were charged with knowingly direct activities of a criminal group. Police are now investigating up to 150 parents who allegedly sold their children’s identities to help Red Rose Family Day Care qualify for the subsidies.
The Canterbury-Bankstown council area have had a majority of FDC Services shutdown, with 49 licences cancelled, followed by Liverpool, where 25 licences were cancelled, Fairfield with 23 licences cancelled and Auburn with 17 cancelled.
Since 2016, the 188 family daycare centres that have been shut down in NSW have saved the federal government an estimated $674 million annually in fraudulent payments, often for children who do not attend and daycare centres which do not exist.
Education and Early Childhood Learning Minister Sarah Mitchell on Sunday said NSW now had the country’s toughest entry requirements for family daycare providers.
“NSW is leading the nation when it comes to combating unscrupulous providers,” she said. “As Minister, I make no apology for being relentless in ensuring there will be consequences for providers who do not operate in the best interest of children.
“As part of the NSW government’s strict compliance regime, it is estimated that the potential cost savings to the Commonwealth amount to an estimated $674 million annually.”
FDC Services That Have Been Shut Down In NSW
Yeomans - Fife, Janet "Police Shut Down Nearly 200 Fake Day Care Centres Across NSW After Uncovering Terror and Bikie Links", The Daily Telegraph, 3 June 2019