§ Mr. Duncan SmithTo ask the Secretary of State for Social Security (1) what meetings he or members of his ministerial team attended in October with the London Organised Fraud Investigation Team; [59701]
(2) what the reasons were for the closure of the London Organised Fraud Investigation Team's offices and the serving of summary notices; [59704]
(3) who will take responsibility for the cases which the London Organised Fraud Investigation Team was pursuing; and if the cases will be proceeded with; [59705]
(4) if his Department was involved in the decision to close the London Organised Fraud Investigation Team's offices. [59703]
§ Mr. DenhamThe London Organised Fraud Investigation Team (LOFIT) was set up by the Association of London Government (ALG). It was a three year pilot, tasked to look at the best ways of tackling organised Housing Benefit fraud. The pilot began in March 1996 and was scheduled to end in March 1999. The Department provided support, including funding. The ALG were responsible for the management of LOFIT and established a management committee to carry out this function on which the DSS had only observer status.
Following a value for money report from the Audit Commission, DSS and the ALG commissioned an evaluation report on the effectiveness of LOFIT by the Benefit Fraud Inspectorate (BFI). Having received the report we were in no doubt that continued funding of the pilot could not be justified. The ALG agreed and decided to wind down the operation of LOFIT as from 12 October 1998. We agreed to their request for assistance on the implementation of an orderly and properly managed rundown. It was further agreed that the DSS would maintain the relevant funding until such time as that was achieved, subject to a satisfactory closure plan, as well as to provide appropriate technical investigative advice on outstanding cases.
The ALG took immediate action and has since appointed an administrator to take responsibility for the management of this rundown, along with the disposal of cases which had been referred to LOFIT. The administrator will decide how the team's remaining cases should be handled.
Neither I nor any members of the ministerial team attended any meetings in October with LOFIT.
861WTackling organised fraud is a demanding task. The Government are pursuing this within the anti-fraud strategy announced earlier this year in the Green Paper "BEATING FRAUD IS EVERYONE'S BUSINESS: Securing the Future". We are continuing to look at ways to strengthen our fight against fraud including establishing better partnerships with local authorities.