§ Mr. Simon HughesTo ask the Secretary of State for the Environment if he will place in the Library a copy of his Department's investigation unit's report into fraud, tax evasion and security lapses in the PSA Building Management South-East Contracting, Southwark; and if he will make a statement.
§ Mr. Redwood[holding answer 18 March 1993]: The central inquiry unit within PSA's internal audit department is conducting an investigation into various allegations made about the Building Management South East's contracting division which deals with directly employed labour throughout the BM south east area.
The investigation has not so far revealed any evidence of fraud, apart from the discovery of a small piece of 398W undercharged work which is to be the subject of disciplinary proceedings. It has, however, revealed that there were departures from good practice in terms of management and personnel controls. The financial and administrative management of the division has been strengthened and the contracts of two temporary staff are being terminated. The inquiry is continuing to see whether there were any irregularities in contract letting and breaches of security and I shall make a further statement when it is complete.
It is not normal practice to put internal audit reports in the Library.