Mark Whitehead 24 September 2018

Review finds 'insufficient financial controls' enabled £2m council fraud

The conviction for fraud of a former employee of a joint venture set up by Barnet council is a 'textbook example of why outsourcing fails', according to Labour.

Shadow communities secretary Andrew Gwynne, responding to the publication of the audit report on the £2m fraud case, said it showed the 'mass outsourcing experiment with our public services' had failed.

The report by Grant Thornton said there were insufficient financial controls in place for the outsourced finance and regeneration services.

Last month 38-year-old Trishul Shah, who was working as a capital investment manager for Regional Enterprise Ltd, set up by the council and outsourcing giant Capita, was jailed for five years.

He admitted two offences of fraud the result of 62 fraudulent payments on compulsory purchase orders in 2016 and 2017 totalling more than £2m.

The report by Grant Thornton said the council had insufficient oversight of the joint company which 'gave the individual access to cost centres on the ledger for illegitimate purposes'.

It said the council was aware of 'deficiencies in the governance arrangements' and had started work to address them, but it was not completed in time to detect or prevent the fraud.

Capita has pledged to underwrite the financial loss to the council.

Mr Gwynne said: 'In Tory-run Barnet, outsourcing has led to a litany of services problems, unstaffed library buildings, Ofsted ruling that the council is ‘failing vulnerable children’, and now accusations of major fraud linked to a Capita contract.

'Internal processes and monitoring clearly failed in this case - we urgently need action from the Government to ensure that this could not happen again.'

SIGN UP
For your free daily news bulletin
Highways jobs

Assistant Business Partnering Accountant

Oxfordshire County Council
£41771 - £45091
At Oxfordshire County Council (OCC), we deliver essential services that make a real difference to the lives of our residents. Our Financial Services team plays a pivotal role in enabling the council to operate effectively, responsibly and sustainably. We Oxford
Recuriter: Oxfordshire County Council

Elective Home Education Officer

Oxfordshire County Council
38220
About the Role • This is a part-time role, 22.2 hours per week term time only. • Interviews will be held at County Hall on Monday 12th January We are looking for a dedicated Elective Home Education Officer to join our team to work with families, ch County Hall, New Road, Oxford
Recuriter: Oxfordshire County Council

Industry Support Worker

Oxfordshire County Council
£29064 - £31022
About the Role We are seeking an industry support worker who can bring the right skills and experience to address both the commercial and support demands of our sector. This includes tasks such as print finishing, client support, reprographics, typographi Oxford
Recuriter: Oxfordshire County Council

Lead Officer - Assessments and Statutory Processes EHCP Casework Team

Oxfordshire County Council
£63576 - £67003
We’ve transformed the way we help our communities to get the best outcomes possible for every child and family we work with. As part of this, we continue to invest in Special Educational Needs & Disabilities (SEND), with the growth of our four teams w County Hall, Oxford
Recuriter: Oxfordshire County Council

Family Hub Lead

Oxfordshire County Council
£54495 - £57864
About the Role As our Family Hubs Lead, you will be part of developing, implementing, and delivering a transformative Family Hubs service across Oxfordshire. This pivotal role involves working with families, partners, and stakeholders to help embed integr Oxford
Recuriter: Oxfordshire County Council
Linkedin Banner