The Coalition has concocted a four-pronged strategy to cut the £2.4bn problem stemming from public sector procurement fraud. According to estimates from the National Fraud Authority (NFA), central and local government fraud will cost the UK £1.5bn and £855m respectively in 2011, a relatively small fraction of total fraud losses …
Dobbin has left the building
Perhaps there would be less fraud if more of these projects were carried out in house, rather than by multinationals that take the money, squirrel it away overseas, offshore the work to the cheapest slave-wage location they can find and fail to deliver anything?
Of course, this would mean the public sector hiring staff and paying market rates. ZOMG won't somebody think of the tax payer's alliance and juicy executive posts for ministers?!!
Government mad that they have been conned *out of* some money
In other news, world's smallest violin discovered.
and where does government money come from? Idiot.
They better look at the NAO as well then..
.. as the way they audit leaves many questions IMHO..
Bad Practice in Accounting
I work in schools as IT support, the local LEA will ONLY allow the school to buy from sellers who will accept deferred payment via invoics.
If they were allowed to buy from sellers where credit cards could be used for immediate payment, there would be major savings.
Hello.... processes to avoid fraud cost more
The root problem is the way all public sector do procurement (OGC Blue Book rules) is flawed, really cannot be applied in the way it needs to to IT procurement, and is set up to line the pockets of consultants!
Recent MoD project with eventual win price of £12m cost over £20m to run the procurement process.... Who cares if the MoD are defrauded by a couple of mill in doing that procurement when the process to stop that cost 10 times the possible loss?!?!?!!?
The other Big con that this ignores is the Government Preferred supplier rates.... I phone up Dell and say i want 5 D630's for myself and get a price discounted from the RRP. I phone up and say, i want 5 D630's for this MoJ project and i get a price that is above RRP...... cos it is the government agreed "discounted" price list.
Don't forget the EU
A lot of the rules for public sector procurement are mandated by the EU. And like anything else passed down from Brussels they are needlessly complex and achieve little. Indeed their complexity makes them harder to implement effectively and as such probably easier for suppliers to abuse.