Recommendation 19

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