Agenda item

Report of the Group Chief Internal Auditor.

The Committee received a report of the Group Chief Internal Auditor concerning an update on the activity of the Anti-Fraud and Investigation team during the first half of the 2025/26 reporting year.

The following discussion took place:

a)    The Deputy Chair commended the Counter Fraud and Investigations Team for their work and the quality of the report and requested further information on the key themes arising from the recent fraud prevention workshops. The Counter Fraud & Investigations Manager explained that findings primarily related to employee matters, with significant themes emerging around collaboration between the Investment Property Group and Commercial teams in addressing risks. A joint session was planned to facilitate this work.

b)    A Member queried whether the report should reference mid-year 2025–26 rather than 2024, the Officer confirmed that this was a mistake. The Member also encouraged inclusion of return on investment (ROI) metrics and drawing on sector examples to enhance the report.

c)    A Member expressed his interest in reading the investigations and processes undertaken but noted the absence of any reference to criminal proceedings. He queried whether police involvement formed part of the process, due to significant figures which indicated large-scale fraud. The Officer confirmed that police involvement occurred where necessary, noting that most investigations were managed internally and prosecutions were undertaken under Local Government powers under the Fraud Act. One case was awaiting trial at the Old Bailey, scheduled for next Spring, and two further business rates cases were being prepared for prosecution.

d)    A Member requested further information regarding Social Housing Tenancy Fraud and its interaction with credit reference agencies. The Officer explained that credit reference data was used to review mortgage records, deceased data, and links to other addresses, as well as check whether tenants were listed at different properties. The process generated risk scores and intelligence to identify cases requiring further investigation. Regarding the 532 cases marked as ‘nil’, it was clarified that no issues were identified by Experian. The Officer further confirmed that the notional savings of £315,278 represented estimated fraud values, such as discounts prevented in right-to-buy fraud cases. For sub-letting cases, a standard London figure of approximately £59,000 was applied.

e)    A Member expressed interest in the outcomes and lessons learned and asked whether issues identified were fed back to the housing teams and shared across the organisation. He noted that if work continued at the same pace without review, progress might be limited. The Officer confirmed that engagement had taken place with the housing allocation team to implement four prevention measures. There was ongoing monthly dialogue with the housing management team to review case outcomes and agree further actions and they were made aware of fraud risks, such as Airbnb-related issues. Training sessions had been scheduled with the housing team for January to address ongoing risks.

f)     The Officer confirmed that where a corporate investigation occurred, reports were submitted to the Director and Head of Service, including a series of recommendations to ensure lessons were learned and acted upon. In response to a Member’s question about whether this was reported to Members, the Officer advised that such reporting would take place once a summary report was available.

RESOLVED - That, the report be noted.