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

Social Worker

North Yorkshire Council
£38,220 - £42,839 per annum, pro rata
In our Family Assessment and Support Team, you will work with a range of children and their families, carers and networks. Richmond, North Yorkshire
Recuriter: North Yorkshire Council

Relief Children's Residential Edge of Care Worker

North Yorkshire Council
£16.35 - £17.85
Here in North Yorkshire, we have several services that support and empower children. Scarborough, North Yorkshire
Recuriter: North Yorkshire Council

Chief Executive

Leicestershire County Council
Up to £234,171
This is a rare opportunity to lead a council with both strength and ambition at a time of change. Leicestershire
Recuriter: Leicestershire County Council

Director of Adults and Integrated Commissioning

Kent County Council
up to £129,530 per annum
A career-defining role at the heart of adult social care transformation. Kent
Recuriter: Kent County Council

Part Time Finance Administrator

Essex County Council
Up to £25081.00 per annum + Pro Rata
Part Time Finance AdministratorPermanent, Part Time£25,081 per annum, full time equivalentLocation
Recuriter: Essex County Council
Linkedin Banner