Counter fraud team saves nearly £3m for Central Bedfordshire Council in first 10 years
A specialist anti-fraud team has netted £2.9m savings for Central Bedfordshire Council in its first ten years, along with notional benefits of an extra £8m, a meeting heard.
CBC is committed to providing an effective anti-fraud service supported by efficient policies and sanctions for those who offend, according to a report to the local authority’s audit committee.
“By ensuring effective measures are in place to prevent, detect, investigate and report fraud, we can ensure that public money is spent on services for the community,” said the report.
“Resources are focused on fraud detection and reduction, and to identify and rectify any administrative weaknesses uncovered during the course of an investigation.
“Fraud accounts for 41 per cent of all crime in the UK and is a significant risk to the public sector. Fraud threats continue to evolve with new tools and techniques being used.
“It must be assumed that the savings made are potentially the ‘tip of the iceberg’ and that further amounts are obtainable.”
CBC’s service director revenues and benefits Gary Muskett told the committee: “The corporate fraud investigation team was established about ten years ago, since when there’ve been £2.9m of actual savings and £8m of notional or value for money savings.
“Housing fraud makes up the bulk of the notional savings, and a mixture of council tax and council tax support fraud account for much of the actual savings,” he explained.
“One case showed how brazen people can be as someone forged a letter from the local authority saying his council tax had been paid in full, which it hadn’t. There are ongoing proceedings against the individual concerned.
“In a case of staff fraud, an individual had access to a procurement card and made 130 purchases. These were reportedly on council business, but were being used for personal items. This is very rare.
“You can see how seriously the council treated this, with a zero tolerance towards fraud, and likewise the courts through the suspended sentence handed out.”
Executive member for finance and Independent Aspley and Woburn councillor John Baker and his Conservative predecessor Clifton, Henlow and Langford councillor David Shelvey both questioned whether the team would benefit from more resources.
Councillor Baker also referred to “a reduction in the number of purchase cards, as the system wasn’t perfect within the council”, adding: “The person who felt they could carry out that offence has been caught and prosecuted.”
Labour Dunstable North councillor Matt Brennan said: “There’s not much in the report about procurement fraud, which is one of the high risks in local authorities.
“Should there be an anti-fraud specific policy, and can we develop one if we don’t have one already?” he asked.
The council’s head of internal audit and risk Clint Horne replied: “This committee approved a counter fraud strategy.
“It’s a little dated now, so it’s our intention to review that. We follow the government’s guidelines in our approach to procurement. We’ve as good a robust procedure as we can have, although nothing is foolproof.”
CBC’s director of finance Denis Galvin confirmed: “If we uncover a procurement fraud, which we investigate, it would feature in this report.
“It’s not treated any differently. We apply the same rigour and procedures. We don’t hide away any aspects of fraud.”