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Thu Mar 22, 2012, 06:04 PM

Leak shows A4e managers knew of potential fraud in 2009

Managers at A4e, the welfare to work firm at the centre of a fraud inquiry into some of its employees, were made aware of potential criminal or irregular activity at the company's offices across Britain as long ago as 2009, leaked documents disclose.

A 34-page internal audit identified dozens of incidents of potential fraud, "reputational risk" or suspected rule-breaking by staff in at least 12 of the company's offices where public money was claimed for placing long-term unemployed people into work.

In one paragraph that will be seized upon by critics of the company, auditors say the number of damaging incidents is so large that the company is open to claims of a "systematic failure" to stop the risks of fraud.

The disclosures will increase pressure on ministers to suspend A4e's contracts, worth £200m. Last month, the employment minister, Chris Grayling, said he would do so if there was evidence of systemic fraud in the company.


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Reply Leak shows A4e managers knew of potential fraud in 2009 (Original post)
dipsydoodle Mar 2012 OP
T_i_B Mar 2012 #1
T_i_B May 2012 #2

Response to dipsydoodle (Original post)

Thu Mar 22, 2012, 06:29 PM

1. And to think I very nearly went in a Thornbridge pub tonight!

Mind you, I can't help but wonder if other government contractors are up to the same tricks as A4E.

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Response to dipsydoodle (Original post)

Wed May 23, 2012, 11:44 PM

2. Top story on the Telegraph website today

What I find interesting is that the allegations are spreading to another firm called Working Links


Written evidence submitted to Parliament by a former chief auditor at A4e shows how an “unethical culture” led to “systemic fraud” at the company, which holds major government contracts. When concerns were raised about wrongdoing with senior managers, little was done to address the widespread abuse of taxpayers’ money, the whistleblower alleged.

A document put to MPs also described serious problems at another welfare to work provider, Working Links, which runs three major contracts on the Coalition’s £5 billion jobs scheme and is part-owned by the Government.

The evidence was submitted by Eddie Hutchinson, the former head of audit at A4e, who attended a meeting of the Commons public accounts committee on Tuesday from which the public was excluded.

Both companies on Wednesday night denied any wrongdoing. The auditor’s evidence will leave the Government facing political questions over its employment programmes, since Mr Hutchinson suggests that many of the jobs the companies claim to have created are fictitious.

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