ComfortDelGro says it has a “zero-tolerance policy” towards any kind of fraud and wrongdoing amid scams and fraudulent taxi allegations levelled against its subsidiary, A2B Australia.
Several news articles published in two of Australia’s biggest newspapers, The Sydney Morning Herald and The Age, accused A2B Australia, the country’s largest taxi company, of taking the public “for a ride”. Australian current affairs programme, 60 Minutes, aired on Channel 9, also covered the allegations, which stemmed from a leak of confidential files. The files stated that A2B Australia’s senior staff had failed to prevent the fraud.
A2B Australia’s CEO Nick Yap was said to be warned by an outgoing senior compliance manager via email that it was “particularly troubling” that the scams included “vulnerable sectors such as NDIS, aged care and hospitals”. NDIS refers to Australia’s National Disability Insurance Scheme that supports disabled people aged between nine and 65 years old.
Yap was also informed by another compliance manager who has since left the company, that the “major fraud on the Cabcharge terminals goes back years and senior management was made aware”.
According to the Sydney Morning Herald, the scams often involve taxi drivers “exploiting loopholes” in the terminal and payment systems provided by A2B. These taxi drivers may also game payment products from Cabcharge, which A2B supplies to state and federal agencies, companies, hospitals and other health and disability services.
Several names, including Maroondah Hospital in the state of Victoria; Villa Maria Catholic Homes, which provide aged care, retirement and disability services; the Peter James aged and chronic illness care centre in Melbourne; and Gosford RSL in the state of New South Wales, were mentioned in the documents.
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A2B Australia is an indirect but wholly-owned subsidiary of ComfortDelGro . Its wholly-owned subsidiary, Cabcharge Payments, is also an indirect but wholly-owned subsidiary of the group. ComfortDelGro Australia completed the acquisition of A2B in April 2024.
In its filing, ComfortDelGro adds that it will “continue to monitor the situation and where necessary, will provide updates on material developments".
Shares in ComfortDelGro closed at $1.38 on Feb 14.
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Update
A2B Australia says it "categorically rejects the false and misleading claims" made by Australian media outlets, 60 Minutes, The Age and The Sydney Morning Herald and that the company does not tolerate fraudulent behaviour.
"These allegations ignore the extensive measures we have taken to prevent and combat fraudulent activity in the taxi industry," the statement read. It added that A2B had already implemented "strict measures" since its acquisition by ComfortDelGro to prevent fraud. Such measures include two-factor authentication on Cabcharge cards, the introduction of direct meter integration for accurate fare recording and faster investigations, with a 10-day case resolution.
Further to the statement, an A2B spokesperson said the company "takes action against drivers engaged in misconduct" and has cooperated with authorities when required.
“The claims made by 60 Minutes and its associated media outlets are not only misleading but also fail to acknowledge the extensive reforms A2B has introduced to prevent fraud in the taxi industry. Due to the serious inaccuracies in these reports, we are considering legal action and cannot comment further," added the spokesperson.
