HC Deb 19 May 2000 vol 350 cc291-2W
Mr. Menzies Campbell

To ask the Secretary of State for Defence what the Government's policy is on identifying fraud in procurement contracts; what safeguards exist to protect against fraud; and what steps have been taken as part of the Smart Procurement initiative to combat fraud. [122754]

Dr. Moonie

The MOD adopts a 'zero tolerance' policy on all types of fraud and following Treasury guidance seeks to reduce risk, including that applying to procurement contracts, through effective controls and prompt investigation. Safeguards created to deter procurement fraud, including collusion and corruption, cover separation of duties, rotation of staff, hospitality books and quality checks. Good procurement practices are employed, such as effective competition, avoidance where possible of single source 'cost plus' arrangements, providing clear specifications, avoiding changes to requirement after contract award and authorising payment only when requirements have been met. These safeguards also naturally apply to the Smart Procurement process during the introduction of which the amount of fraud awareness training to procurement staff increased. Moreover, full guidance on fraud deterrence and detection is now available to all procurement staff on internal electronic mail systems as part of a Project Manager's toolkit. These specialist aspects of the procurement process are part of a wider range of fraud deterrence initiatives already in place or about to be introduced, including the creation in February 1999 of a Defence Fraud Analysis Unit. This unit now acts as the focus for MOD fraud matters including the promotion of risk awareness and uses the latest data mining and fraud detection techniques in a proactive response to fraud risk.

Mr. Menzies Campbell

To ask the Secretary of State for Defence on how many occasions in the past five years his Department has investigated allegations of fraud in procurement contracts; on how many occasions allegations were upheld; and on how many occasions prosecution followed, indicating in each case the contract and project concerned. [122755]

Dr. Moonie

I will write to the right hon. and learned Member and a copy of my letter will be placed in the Library of the House.