Almost 350 fraud cases closed by North Ayrshire Council in one year

Corporate fraud referrals in North Ayrshire rocketed by 25% in the past year, it has been revealed.

All but nine of the referrals made to the council were closed during 2022/23, the audit and scrutiny committee heard.

The team received 357 referrals for investigation during 2022/23 compared to 284 in 2021/22. In all, 346 cases were closed.

Some 164 of those were closed with no issues identified; 73 were referred to another agency or council service for investigation; and 109 were closed with results achieved (fraud, error or other recovery/action totalling £236,000).

Housing benefit fraud and error totalled £29,000 and council tax £11,000.

Covid 19 grants amounted to £51,000; discretionary housing payments £3,000 and housing £9,000. Others came to £33,000.

Furthermore, cases which have been pending at court and stalled due to the Covid-19 pandemic are now starting to progress through the system.

Two cases previously reported to the Crown Office and Procurator Fiscal Service (COPFS) have now concluded, councillors were informed.

In 2021/22, one case was included in the financial outcomes report to the committee with a value of £150,000. The case concluded at court in August 2022 with a guilty verdict and the ordering of 200 hours of community payback to be completed within 12 months.

In 2019/20, one case was included in the financial outcomes report to the committee with a value of £240,000. The case concluded at court in March with a not guilty verdict.

In addition to the aforementioned financial outcomes, other outcomes/benefits were noted as follows: 53 tenancies were recovered by housing with some assistance from the corporate fraud team; and one application for a new tenancy has been refused as a result of pro-active checks on tenancy successions, joint tenancies, and tenancy exchanges.

Six blue badge cases were investigated during the year.

Five cases were closed with no issue and one resulted in the recovery of a blue badge, the issue of a warning letter and a referral to the COPFS for prosecution.

Meanwhile, four employee investigation reports have been taken forward, three of which concluded with a recommendation for the service to consider disciplinary action.