Wolverhampton Council vows to tackle Covid grant fraudsters
Wolverhampton Council has vowed to crack down on criminals taking advantage of coronavirus crisis business grants.
The council has handed out almost £40 million to firms through the Government’s coronavirus support scheme, with bosses now planning to carry out checks on businesses and people who have received grants as part of a crackdown on fraud.
It comes after ministers raised concerns of fraudsters potentially taking advantage of the schemes for their own gain.
Mark Wilkes, audit business partner at Wolverhampton Council, said: “Obviously with all the grants given to the council to distribute, there’s been quite a risk of fraud.
“Although the Government accepts there will be risks we have tried to put processes in place that means only the right people get the grants.
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“Post-grant checks will also be taking place and where the Government has asked us to use various data services we have – including the Government’s Spotlight system and Experian checks.”
An amber risk-register has been put in place for coronavirus ensure the authority remains vigilant and wary of the fraudsters.
Tenancy fraud investigations have currently been suspended due to the pandemic – with the team being unable to interview suspects.
Caution
Mr Wilkes added: “We’re still continuing to receive reports of potential subletting and other breaches and they are being investigated as far as possible through lockdown. We do the desk research but we can’t interview residents.
"But as lockdown conditions have eased we can interview people – under caution if necessary.”
Figures show a total of 21 cases of tenancy fraud have been stopped by the team – equating to roughly £1.4 million from April last year to March this year. The data shows the savings figures – based on methodology and calculations produced by the Cabinet Office in support of the National Fraud Initiative.
It comes as one of the city authority's own councillors is investigated on suspicion of fraud, although the details have not yet been revealed.
The Labour councillor, who represents East Park and has been a councillor since 2011, has been released pending the investigation.
It is understood he was one of two people arrested in connection with the same allegations.
Council bosses have remained silent on the probe. Wolverhampton Council spokesman Tim Clark said: “The council does not comment on police matters.”
Mr Banger stood down as city economy chief for what were described as personal reasons.
