Fraud investigators have recovered £1.2 million from businesses submitting bogus claims for cash support and people cheating the rates and adult social care systems. Trafford Council counter fraud and litigation team redeemed more than double last year compared to when the team was launched in 2017/18 when it clawed by £400,000.
A report to Trafford council's accounts and audit committee said the team had helped prevent 'a large number of false applications' that were submitted from succeeding. 'Robust checks' following the introduction of the Government's Business Support Grants in March 2020 were made to ensure claimant companies were eligible to receive them.
But it went on: "However, there was still a small amount that was paid as a result of applicants providing false documentation - most commonly false tenancy agreements - or failing to declare they had already vacated the premises before the schemes had been introduced and were therefore not eligible to receive payment.
The council's counter fraud and litigation manager David Wright wrote: "Data matching exercises undertaken also revealed instances where businesses had falsely claimed multiple grants across different boroughs. The team has been working to identify, investigate and then recover, where possible, grants which had been incorrectly awarded to them."
In one case study, an investigation was set up following enquiries made to a company to support an application into the Omicron Grant introduced in December 2021.
Questions were raised over the firm's eligibility for payments made to it in relation to previous grant schemes which had been granted to it. The company received payments for a number of premises it had occupied in the borough, based on declaration in applications forms that the properties would normally operate as retail premises which, but for the Covid restrictions in place during 2020/21, would have been open to the public.
However, the investigation revealed that while that was the case with some of the properties, two of them were buildings used for training and administration purposes and were therefore not eligible for funding. The company was contacted and repaid the resultant £54,000 it had incorrectly claimed.
Meanwhile, more than £39,000 has been saved by cancelling invalid discounted council tax bills where people had falsely claimed they were living alone; a further £20,500 has been claimed back in council tax support and council tax benefit overpayments; £21,000 has been saved by identifying council tax liability irregularities; £36,500 in non-domestic rate liability irregularities and £125,000 in business support grant irregularities.
However, most of the £1m plus claw back by the team has been through recovered debt which Mr Wright said had 'steadily increased' during the last five years, thanks to the threat of litigation from the council. And he said the fraud team is uncovering 'a large number' of applications for Covid-19 Business Support Grants where the businesses have left the premises.
Responding, Coun Michael Whetton said: "Fraud against the public purse is something I find is awful, especially in recent times. When the Government has set out to help businesses at a time when the nation was under stress, some people have tried to take advantage. I am pleased you've managed to close in on some of those people."
Coun Dave Morgan added: "Prevention is always better than recovery," and he asked Mr Wright: "What are the key lessons passed on to the wider council team in terms of preventing this from happening?"
Mr Wright responded by saying the biggest challenge had been the Business Support Grant investigations, adding: "Our verification process has got wider and tighter, including background checks and searches on the Companies House website. There were a lot of applications that were rejected in the first place."
Chair Barry Brotherton told Mr Wright: "Hopefully you're a deterrent to people knowing that your group are there and that you are encouraging people to be entirely honest in their claims."
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