HC Deb 10 June 1964 vol 696 cc432-4
17. Mr. Jeger

asked the Secretary of State for Defence what action has been taken to prevent frauds involving fuel oil at Royal Air Force stations abroad, in view of the Fourth Report from the Committee of Public Accounts which states that over a period of four years only about two-thirds of the fuel paid for was actually delivered; and what estimate he has made of the financial loss caused by the inadequate control and laxity of administration.

Mr. H. Fraser

Particulars of the way the fraud operated and of the relevant failures in administration have been sent to all commanding officers and officials concerned with fuel. The consumption of fuel oil in heating installations is now recorded at all R.A.F. stations so that the quantities ordered can be checked. As the House will be aware the loss at the station which was the subject of the Committee's Report is estimated at £30,000.

Mr. Jeger

Is not this Report a scandalous exposure of inefficiency on the part of the Ministry? Can the Minister explain how these frauds could have gone undetected for the period of four years revealed in this Report and why orders for this fuel oil should have been 50 per cent. in excess of actual consumption? Were no records kept? Was there no control or check at the Ministry? Was not the inefficiency going down to the bottom right from the top?

Mr. Fraser

No, Sir. I think that having looked at this case with care, I should say that the instructions were themselves adequate although not properly carried out. Those concerned have been reprimanded or punished in instances where the fraud actually took place.

Mr. Loughlin

Could the Minister tell us how many people were involved in this fraud and what precisely he means when he says that they were punished? Were any prosecutions undertaken?

Mr. Fraser

Yes, Sir. I think that there were five persons involved who were punished. One was sent to prison for one year and discharged with ignominy, and higher up in the scale were officers who for laxity were reprimanded and have had serious adverse reports.

Mr. Dance

In view of the way in which this Question has been framed, which rather insinuates that this practice is very widespread, can the Minister tell us how many stations were actually involved?

Mr. Fraser

One station was involved and we are also investigating a similar type of fraud at another station. Beyond that, we have no evidence whatsoever of this type of fraud being carried out.