§ Dr. David ClarkTo ask the Secretary of State for Defence how much money was spent by his Department in each of the last 10 years to combat fraud.
§ Mr. SoamesFigures are available only from 1991–92 and relate to the cost of the Ministry of Defence police fraud squad and the defence fraud unit. They are as follows:
Year Cost 1991–92 783,000 1992–93 932,000 1993–94 1,079,000 1994–95 1,087,000 A good deal of effort is expended elsewhere in my Department to combat fraud, but the cost of this could not be separately identified.
§ Dr. David ClarkTo ask the Secretary of State for Defence how many investigations into fraud have been made within his Department in each of the last 10 years.
§ Mr. SoamesComplete figures are available only from 1986 and include cases where the alleged fraud was not against my Department.
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Year Investigations 1986 3,983 1987 3,275 1988 3,205 1989 2,251 1990 3,837
Year Investigations 1991 4,413 1992 3,260 1993 12,277 1 Includes MOD police investigations for January to March 1994.
§ Dr. David ClarkTo ask the Secretary of State for Defence how much money his Department has lost through fraud in each of the last 10 years.
§ Mr. SoamesThe values of reported fraud for the financial years 1984–85 to 1993–94 inclusive are as follows:
£ 1984–85 41,000 1985–86 199,000 1986–87 244,000 1987–88 1,039,000 1988–89 334,000 1989–90 233,000 1990–91 984,000 1991–92 63,000 1992–93 205,000 1993–94 571,000 These figures exclude "procurement fraud"—fraud perpetrated by contractors, including corruption of officials by contractors and collusion between officials and contractors—which is often difficult to quantify precisely.
No abatement is made for subsequent recoveries.
§ Dr. David ClarkTo ask the Secretary of State for Defence if he will list by name the five fraud cases which have cost his Department the most money in the last 10 years.
§ Mr. SoamesThe largest fraud cases characteristically relate to procurement fraud, where the extent of the cash loss to the Department is often difficult to quantify with any precision. The five highest value cases were as follows:
Case Year Director of Ammunition Procurement (Foxley) 1994 VMS Ltd. 1991 Chellingworth and Singer Ltd. 1990 Gateway Motor Auctions 1987 CAS Aviation and Marine International 1986
§ Dr. David ClarkTo ask the Secretary of State for Defence what actions he has taken to combat fraud within his Department.
§ Mr. SoamesMy Department has taken a range of measures to deter and detect fraud and to make staff aware of the need for vigilance. All suspected cases are vigorously pursued and an internal statement on fraud policy and law makes it clear that we will not tolerate dishonest behaviour among our employees. Investigations into suspected fraud are undertaken by the Ministry of Defence police fraud squad. The service police similarly investigate fraud in the service environment. The deterrence of fraud forms part of high level management plans with requirements placed upon senior line management to impose sound controls, follow up suspicions, and report suspected fraud. There is a514W consultative panel on fraud and irregularity which is being reconstituted to involve line management representation, supported by a defence fraud unit which is tasked with collating information, assessing policy options and raising fraud awareness. Private sector expertise has been drawn on in the development of a methodology for fraud risk assessment. In the procurement field there has been extension of competitive procurement, a greater rotation of duties in significant procurement posts, and stress on fraud awareness.
§ Dr. David ClarkTo ask the Secretary of State for Defence if he will list the cases when employees of his Department have(a) been tried and (b) been successfully convicted of fraud in each of the last 10 years.
§ Mr. SoamesMy noble Friend the Under-Secretary of State for Defence will write to the hon. Member and a copy of the letter will be placed in the Library of the House.