MSPs praise public sector anti-fraud drive but call for more
The drive to reduce fraud on the public purse in Scotland has been successful but more needs to be done, according to a Holyrood Committee.
A report by the Public Audit & Post-legislative Scrutiny Committee has set out key recommendations to improve the National Fraud Initiative (NFI) in Scotland, following its post-legislative scrutiny of the scheme.
Led by Audit Scotland, the NFI matches electronic data to detect fraud or error in the public sector, such as overpayments of housing benefits and council tax discounts, blue badge misuse or pension fraud.
The NFI is estimated to have generated savings and recoveries of over £110m since 2006, with more than 100 public sector organisations across Scotland taking part in the last exercise.
However the committee wants more public bodies – and private organisations in receipt of public money, where appropriate – to participate in the scheme, given the potential savings.
"We believe all public bodies and private organisations in receipt of public money should participate in the NFI, where this would deliver clear benefits to the public purse", the report concludes.
It expresses disappointment that matches of data are not always effectively followed up, and calls for the Scottish Government to investigate whether legal change is needed to enable local authorities to access all the data they require – such as that held by HMRC.
It also recommends a campaign to raise public awareness of the NFI to help maximise its deterrent effect.
Jackie Baillie MSP, acting convener of the committee, commented: "By letting more people know the NFI takes place, how it works and highlighting its successful outcomes we can help prevent fraud occurring in the first place."
She added: “There’s no doubt that the NFI is a success story in Scotland. It has improved the transparency of our public finances and has clawed back millions of pounds that otherwise would’ve been in the pockets of fraudsters or lost due to system errors.
“However, we have outlined several ways in which Scotland’s approach to stopping scams or preventing errors could be strengthened."
The NFI was put on a statutory footing by s 97 of the Criminal Justice and Licensing (Scotland) Act 2010, and this is the first piece of post-legislative scrutiny carried out by the committee.