William Eichler 08 January 2025

£1m Aberdeen council fraud case ‘cautionary tale’

£1m Aberdeen council fraud case ‘cautionary tale’   image
Image: Susanne Pommer / Shutterstock.com.

Local authorities in Scotland have been urged to learn from the weaknesses that enabled an Aberdeen City Council employee to defraud the council of £1.1m over nearly two decades.

The employee stole £1.109m worth of council tax refund payments between 2006 and 2023 before a staff member became suspicious and alerted senior colleagues.

A report from the Accounts Commission has found that while the council had a system of controls in place, these were ‘not adhered to and lacked scrutiny’.

It added that the council has acted swiftly to improve its processes over the past year but needs to ‘increase the momentum’ to complete its outstanding improvement actions.

The commission also reminded officers and councillors that they had a duty to safeguard public money by using effective systems and checks.

Andrew Burns, deputy chair of the Accounts Commission, said the Aberdeen City Council case was a ‘cautionary tale.’

‘All councils in Scotland need to learn from this prolonged and significant fraud,’ he said.

‘It isn’t enough to have controls to counter fraud; checks need to be followed, weaknesses identified, and routine testing of systems carried out.’

Aberdeen City Council expects to recover the lost funds in full.

A council spokesperson commented: ‘Aberdeen City Council will carefully examine the findings of the Accounts Commission. A report will be brought to the council for consideration, including the Accounts Commission’s recommended actions and the council’s proposed response to the recommended actions.’

SIGN UP
For your free daily news bulletin
Highways jobs

Support Worker

Wakefield Council
£14,299.00 to £15,768.50 pro rata. Grade 6
We are recruiting self-motivated and enthusiastic support workers, providing care and support to adults with learning disabilities. Wakefield, West Yorkshire
Recuriter: Wakefield Council

Senior Social Worker

Wakefield Council
£41,511.00 to £44,711.00, Grade 10
We are an ambitious and high achieving council, committed to continuous improvements and innovation. Wakefield, West Yorkshire
Recuriter: Wakefield Council

Business Support Officer WMF2273e

Westmorland and Furness Council
£25,989
A key aspect of the Business Support role involves communicating with both members of the public and professionals Kendal, Cumbria
Recuriter: Westmorland and Furness Council

Domestic - Older Adults - WMF2283e

Westmorland and Furness Council
£24,413 (pro rata)
The role of a Domestic is more than just a job, it makes a huge difference to the wellbeing of our residents Barrow in Furness, Cumbria
Recuriter: Westmorland and Furness Council

Participation Officer - WMF2286e

Westmorland and Furness Council
£34,434 - £35,412
Childrens Services Quality, Resources & Transformation team is seeking to appoint to a Participation Office Penrith, Cumbria
Recuriter: Westmorland and Furness Council
Linkedin Banner