An investigation into Defence Housing Australia, which manages a $10 billion taxpayer-owned property portfolio, has been launched by the Australian Federal Police, after a referral from the Department of Finance. 
No reason has been given for the referral, although there have been long running suggestions the federal government could look to privatise the DHA.
It is the government body that leases and sells homes to defence personnel  and many government buildings, including on-base housing at HMAS Cerberus and Puckapunyal Army Base (Victoria), Kapooka Village and RAAF Base Richmond (NSW) and 65 remote houses in Western Australia and North Queensland.
In a statement, the AFP confirmed reports by the ABC, that it had  received a referral.
"As this matter is currently under evaluation, it would not be appropriate to comment further," an AFP spokesman said.
The DHA added, in a statement: "The Department of Finance has referred a matter concerning Defence Housing Australia to the AFP". 
"As this matter is the subject of ongoing AFP process it would not be appropriate to comment further." 
DHA chairman Sandy Macdonald said he had "nothing further to add to the statements made by the Australian Federal Police and the Department of Finance".
According to the ABC report, the DHA hit the headlines last year when the then-DHA managing director, Peter Howman, suddenly resigned.
"From what I understand, the statement from the AFP and Department of Finance is referring to Defence Housing Australia - it's not referring to myself, and it's really a matter for DHA to respond to, not myself, and the Department of Finance and the AFP, and I wouldn't want to get involved with any discussions they may be having," Mr Howman told the ABC.
According to its latest annual report, for 2014, DHA has a total portfolio of 18,577 properties, worth approximately $10 billion,  managed across Australia.
The former Abbott government considered privatising it and commissioned a scoping study in the 2014 budget. The company was valued at $2.2 billion during the privatisation process. In   May last year the government ruled out privatisation "at this time".
Property agents contacted by BusinessDay said there was "always speculation of privatisation", but nothing had been mentioned as to why the AFP would be involved.
As part of its remit, the DHA has also undertaken development of properties and is currently building 300-plus apartment project in Lindfield that has almost sold out. 
DHA's Crimson Hill development has just nine apartments still available of the 310 originally put to market.
Purchasers have included first home buyers, young families and downsizers, says Colliers International national director of project marketing, Curtis Field.
The DHA also sold about 10 smaller sites many years ago near the Taronga Zoo on Sydney's lower north shore.