Source · Select Committees · Public Accounts Committee
Recommendation 19
19
Accepted
Government lacks sufficient capability to detect and investigate all fraud cases.
Conclusion
DWP and HMRC are the two departments at the front line of the battle against fraud. These departments have their own fraud investigation and enforcement legal powers.60 Cabinet Office told us that the PSFA will itself be setting up an enforcement unit to meet the demand across government for effective civil and criminal enforcement actions.61 Government has neither the ability or capability to detect, investigate and gather sufficient evidence to support a prosecution for all fraud and corruption.62 We asked how government planned to use transparency to make the most of its investigative capabilities. Cabinet Office told us about the importance of annual reporting on fraud, where it occurs, the actions taken in response to it and the outcomes achieved. It is also of vital importance to provide transparency to public on the consequences of fraudsters’ actions, and for organisations to expose themselves to internal and external scrutiny of their counter-fraud and corruption efforts.63 HM Treasury also acknowledged the importance of transparency and celebrating tackling fraud and corruption to deter others.64 55 Qq 5, 93 56 Q 11 57 Letter to the Chair of the Public Accounts Committee from Alex Chisholm, Cabinet Office Permanent Secretary, 25 May 2023 58 Qq 10–11 59 Q 11, C&AG’s Report, para 3.11 60 Q 25; C&AG‘s Report, para 22 61 Qq 25, 55 62 C&AG‘s Report, para 3.11 63 Q 88 64 Q 28 16 Tackling fraud and corruption against government Recovery of losses
Government Response Summary
The government accepts the importance of transparency, establishing a Cross Government Counter Fraud Communications Working Group led by the PSFA to develop a consistent communications plan by June 2024. The PSFA will also continue public reporting through strategic plans and an Annual Report to highlight the impact of counter-fraud work.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. Target implementation date: June 2024 Transparency and clear communications, highlighting the effectiveness of counter fraud measures and the government’s efforts in doing so, is a priority for the PSFA. The PSFA works closely with the Cabinet Office Communications teams to identify, generate, and share positive and deterrence-based news stories highlighting the impact of its work. It will also continue to hold itself accountable via public publications of its strategic plans and report on progress made to tackle fraud and corruption through its imminent Annual Report. A Cross Government Counter Fraud Communications Working Group has been established to enhance the coordination, collaboration, and consistency of communications regarding public sector counter fraud activities. It is led by the PSFA and includes key government departments and agencies with membership expertise in countering fraud, behavioural insights and communications. The Cross Government Counter Fraud Communications Working Group will develop and maintain a cross-government communications plan, that will provide a common narrative for the government's efforts in preventing and pursuing fraudsters. It will also amplify individual public body communications to further promote the success and impact of counter fraud activities and to create a deterrence effect.