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Fighting Fraud and Corruption Locally

by Mark Rowe

Fraud and corruption against councils are a drain on resources and every £1 that a local authority loses to fraud is £1 that it cannot spend on supporting the community. So says the latest Fighting Fraud and Corruption Locally (FFCL) strategy, launched by fraud prevention membership body Cifas, on behalf of the FFCL Board.

Mike Haley, Chair of the Joint Fraud Task Force, said: ‘Fraud continues to make a significant drain on the resources and budgets of local authorities, and so more than ever, it is crucial that they take a co-ordinated and innovative to approach to tackling this issue. This strategy is an important step in helping councils share and co-ordinate their response to fraud, as only by working together and continuing to innovate can we begin to take positive action against the fraud and corruption that is so corrosive to society.’

Building on input from 250 councils across England, the FFCL strategy builds on good practice and recommends a more co-ordinated response to fraud in local government. Recommendations include:

– Individuals charged with governance within councils will support measures to combat fraud and ensure that there are robust arrangements and executive support to ensure counter fraud, bribery and corruption measures. They will also make sure that these are embedded throughout the organisation.
– Councils should undertake a risk assessment of fraud areas and vulnerabilities, and agree appropriate resource.
– Councils should put in place controls to prevent fraudsters from accessing services and becoming employees, and this could be through technology to establish identity, check documents and cross-check records.
– Punishing fraudsters and recovering losses by prioritising the use of civil sanctions needs to continue to be a priority. Also developing capacity to investigate fraudsters and develop a more collaborative and supportive law enforcement response on sanctions and collaboration.
– Continue to protect against serious and organised crime, as well as protect people from becoming victims of crime.

A Fraud Champions Network will see CEOs and Financial Directors from councils come together to share intelligence and best practice. A more formal link into the Joint Fraud Taskforce (launched by the then Home Secretary Theresa May in 2016) has also been agreed, giving councils access to senior economic crime stakeholders for the first time. Some 30 activities and events by councils over the next year will demonstrate good practice found during the research for the document.

Richard Watts, Chair of LGA (Local Government Association) Resources Board, said: ‘The Fighting Fraud and Corruption Locally Strategy is an excellent example of how councils can come together for the overall benefit of local services and residents served. Councils have a good record in countering fraud and the strategy contains numerous examples of successes. Councils need to be agile and work together with national agencies and the Government to respond to new fraud threats, to prevent losses and to protect vulnerable people in our society. Collaboration to counter and prevent fraud is a theme running through the strategy.’

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