§ Mr. Malcolm BruceTo ask the Secretary of State for Defence what is his estimate of the cost of theft and fraud to(a) his Department, (b) its agencies and (c) non-departmental public bodies in (i) 1995–96, (ii) 1996–97 and (iii) 1997–98 to date. [27762]
§ Mr. Spellar[holding answer 5 February 1998]: The estimated cost of fraud and theft to the MOD, its agencies and non-departmental public bodies for the years 1995–96, 1996–97 and 1997–98 to date is as follows:
Value £000 1995–96 506.5 1996–97 466.2 1997–98 (to date) 75.0 These figures relate to in-house cases of fraud and theft and are based on reported suspicions and proven cases. They are subject to change as investigative and disciplinary action progresses.
The cost of fraud by contractors is difficult to quantify because it may not affect the Department's funds directly and may involve conjecture about what would have happened otherwise. Costs recorded in a given year may also relate to cases first identified several years before. Subject to these qualifications, the costs for the years in question (on conviction) were:
Value £000 1995–96 2.7 1996–97 0.0 1997–98 (to date) 0.0