UK NEWS: Wales fraud crackdown uncovers £4million

4:26am Friday 16th May 2008

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More than £4 million was uncovered by a crackdown on fraud in the public sector last year.

Most of it was due to people wrongly claiming council tax discounts and benefits in Cardiff.

A new method of matching people receiving single-person discount with the city's electoral register saved the public purse £2.69 million, a report said.

Data for other local authorities is being counted and is expected to result in substantial extra savings.

The National Fraud Initiative (NFI) found a 73% increase in fraud in Wales, from £2.59 million in 2004/05 to £4.47 million in 2006/07.

But the Wales Audit Office said if the council tax sting in Cardiff was ignored then the value of overpayments would have fallen.

It also led to 26 successful prosecutions and 157 cases where action was taken for fraud or errors involving public sector employees.

Auditor General Jeremy Colman said: "The results show what can be achieved when public sector bodies work together to combat fraud.

"Fraud is a serious issue. It reduces the money available for public services and confidence in the bodies that provide them.

"The NFI has been vital in identifying and combating fraud. Its long term value for the public sector has become immeasurable.''