Accused says $1.6 million daycare fraud claims are just a mistake

A daycare provider accused of fraudulently claiming $1.6 million in Federal Government money has told 7 News the whole thing is a misunderstanding.

The Canberra man claims he cared for up to 70 children, despite officials have never been able to confirm it.

For 17 months the non-descript house was funded as a thriving daycare centre after Ruben Majok Aleer Aguer came to Australia from a Sudanese refugee camp.

Ruben Majok Aleer Aguer says the accusations of fraud against him stem from a mistake. Photo: 7 News
Ruben Majok Aleer Aguer says the accusations of fraud against him stem from a mistake. Photo: 7 News

His daycare company received $100,000 a month in federal funding, totaling $1.6 million.

Mr Aguer claimed he received less than $1m, and plans to fight to reopen his business.


Before it was cancelled, a civil hearing was told officials found “no evidence of any staff, or any children, and nor had it properly inspected a principal office or the premises of any carer”.

Mr Aguer was allowed to operate for 10 months before he received his first compliance notice.

He continued for another seven months before he was finally suspended.

A lawyer for the Education Directorate told a tribunal hearing that one of the reasons Mr Aguer was allowed to continue for so long is because the department wanted to promote diversity in the daycare market.

Mr Aguer said he would not repay the $1.6m.

Corrupt family daycare providers have cost taxpayers $1 billion over the past two years.