An investigation is under way into alleged fraud relating to the supply of information technology contractors to the federal government.
The auditor-general was advised of the fraud by the Department of Finance during an audit which found value for money could not be properly demonstrated in $2.8 billion worth of government computer contracts.
No other details about the investigation were provided in the audit report tabled in parliament on Monday.
The auditor-general looked at the government's $3.9 billion spend on information and communications technology goods and services in 2018-19.
Procurement panels and arrangements were used with the aim of better efficiency and reducing risk, while also getting value for money.
But the audit report found in setting up the arrangements, the Digital Transformation Agency and Infrastructure department "could not fully demonstrate that the arrangements supported the achievement of value for money outcomes".
In three arrangements - the IT Services panel, the Digital Marketplace panel and the IBM whole of government arrangement - worth $2.8 billion the auditor found the absence of competition made it hard to show value for money.
The IT Services panel ceased operation in February.
The department and DTA have taken on board a number of recommendations to improve the system.