Australia Post hails ex-cop to probe on criminal syndicate

Australia Post has appointed a former commissioner of Victoria Police to head up an internal review on the government-owned postal service, after Australian media exposed an alleged criminal syndicate operating within its midst.

Ken Lay, Victoria's former commissioner, retired last year after three years in the role, and will be expected to report back to Australia Post with his finding before the end of October.

On Wednesday, Fairfax media reported the syndicate, made up of three Melbourne men, has allegedly been luring overseas students to Australia on the false belief they would be able to study government-subsidized courses at a Melbourne university.

Often these students did not receive the education as promised, Fairfax reported, instead finding themselves working for Australia Post for sub-prime wages.

"It is encouraging to see how seriously Australia Post is taking their obligation to ensure all contractors, including sub- contractors, are paid correctly under appropriate working conditions," Lay said in a statement on Thursday.

"I will work closely with the organization, as well as other government bodies, to ensure Australia Post is not only continuing to meet industry best practice in its compliance of third-party delivery contractors, but exceeding it."

Each syndicate member was charged with fraud on Wednesday, with police alleging they falsified police check documents and student records.

Police also swooped on the group's assets, believed to be worth more than 6 million U.S dollars, confiscating six properties, two luxury automobiles and 130,000 U.S dollars in cash.

Australia's Post chief executive Ahmed Fahour told the Australian Broadcast Corporation on Thursday that the organization would leave no stone unturned to get to the bottom of the alleged routing. Endi