Procurement tops fraud chart

27 January 2011

27 January 2011 | Lindsay Clark

A report out today has found that procurement fraud in UK central government and the NHS has reached £1.5 billion a year.

The study, from the NationalFraud Authority (NFA), also found that procurement fraud in UK local government reached £855 million.

Overall, fraud is costing the UK more than £38 billion a year, according to the Annual Fraud Indicator from the NFA, which is an executive agency of the Attorney General's Office.

Bernard Herdan, chief executive of the NFA, said: "Whether it is the public, private and charity sectors or as individual citizens, it is vital we join together to take action to stem the rising tide of fraud.”

Meanwhile, another report has named procurement as the top type of private and public sector fraud, ahead of accounts receivable fraud and treasury fraud.

Simon Bevan, head of fraud at BDO, said fraud was a popular area of scrutiny for risk departments at the moment. “The current flavour of the month is bribery. There has been widespread marketing by law firms on the Bribery and Corruption Act as well as heavy press coverage that has distracted attention away from fraud as a priority. Although risk and compliance departments should address both old and new risks, they face limited resources and giving equal attention to matters is problematic often with new risks taking a lead.”

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