Fraudulent claims cost £5m from public funds

A scheme aimed at compensating individuals affected by terrorism in Northern Ireland is believed to have cost public funds more than £5 million in fraudulent claims.

A report by the Northern Ireland Affairs Committee (NIAC) into the new Criminal Injuries Compensation Scheme, which was introduced in 2001, said it was "extremely concerned to find there has been significant abuse of the Terrorism Act compensation scheme," since its introduction three years ago.

Chairman of the NIAC, Michael Mates, said that while the new Criminal Injuries Compensation Scheme had posed problems in its inception, any teething problems had now been ironed out. However, Mr Mates did express concern at the number of claims which increased significantly "at a time when we would have expected a reduction because of a greatly reduced operational deployment of the Army".

"While new, robust, claims procedures and improved liaison with the Army have resulted in a dramatic reduction in claims from an average of 633 to 67 per month, the Government must continue to review compensation schemes to ensure that any irregularities are detected and resolved at an early stage," he said.

Today's Report looked specifically at the role of the Compensation Agency in: supporting the victims of violent crime by providing compensation for serious injuries and financial loss; sustaining the confidence of the community by providing compensation for physical damage and consequential loss arising from criminal damage to property; and providing compensation to those who suffer loss from action taken under the Terrorism Act 2000.

Mr Mates said that the Compensation Agency undertook an important role in Northern Ireland and that the NIAC was satisfied that the Agency was undertaking the job it was set up to do.

"We expect that the improving security situation will have a significant impact on the future work of the Agency. In particular, the overall level of claims is expected to fall further as a result of these improvements," he concluded.

(MB)