20/03/2012

Government Credit Cards Being Abused

An examination of transaction carried on government credit cards has uncovered evidence of unauthorised transactions.

The National Audit Office report released today will show that government-issued procurement cards are being abused due to a failure to oversee their spending.

A card-holding employee from the Department for Work and Pensions (DWP) is currently at the centre of criminal proceedings, while three other instance of fraud have been identified in the Department of Health.

The Ministry of Defence hold more than half of all government credit cards and accounted for £237 million, or nearly three-quarters, of all government card spend in 2010/2011.

Margaret Hodge, the chair of the public accounts committee, said that the report has uncovered evidence of unauthorised transactions and a culture of complacency.

"Given the risks of fraud and poor value for money, I am concerned that neither departments nor the Cabinet Office know enough about the use of procurement cards in government.

"When the average transaction value is £184, the initiative to publish transactions over £500 is not enough to protect public money from fraud and misuse. We will want to know what action the government is taking to improve controls," she said.

(H)


Related UK National News Stories
Click here for the latest headlines.

18 September 2013
Convicted Paedophile Loses Legal Challenge Over Bank Details
A convicted paedophile has lost a legal challenge in the High Court over rules requiring him to disclose bank details to police.
22 March 2004
Britons will spend £17bn shopping online in 2004, says report
The lure of online purchasing will tempt around 20 million British shoppers into spending around £17 billion this year, according to a report by the e-commerce business conglomerate IMRG. The trade body, which includes businesses such as easyJet, Debenhams and Tesco.
20 October 2010
Arrest In Premier League Ticket Probe
Metropolitan Police Service officers, investigating the misuse of Premier League membership cards, have arrested a 46-year-old man on suspicion of fraud by false representation, ticket touting and money laundering.
18 May 2012
Generous Parents Hurting Grown-Up Children's Credit Rating
Free credit report service Noddle has warned that parents are inadvertently placing their adult children at a financial disadvantage by taking out credit and paying essential bills on their behalf.
01 July 2008
Brits Risk £58m A Month In Extra Charges Using Cards Abroad
Research launched today by Travelex reveals consumers are still relying on credit and debit cards abroad, and last month Brits stumped-up £58m in extra charges at ATMs and in retail outlets abroad. This is the equivalent of sending 20,000 families of four on a week-long holiday to the Med.