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)
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)
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