Department for Transport: Fraud

Department for Transport written question – answered on 7th January 2019.

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Photo of Jon Trickett Jon Trickett Shadow Minister (Cabinet Office), Shadow Lord President of the Council

To ask the Secretary of State for Transport, with reference to page 21 of the Cross-Government Fraud Landscape Annual Report 2018, to what incident or incidents the £111.2 million for detected error refers.

Photo of Jesse Norman Jesse Norman Minister of State (Department for Transport)

The total figure almost entirely refers to a planned payment of £110.5 million being made by the Core Department to Network Rail, which was processed in error by Arvato, the Department for Transport’s Shared Services provider. A bank account number was incorrectly transposed on the payment request and as the bank account number did not exist, the payment was put into a holding account. The error was detected promptly by the Department: appropriate action was taken to secure funds and the payment was then correctly made to Network Rail on the same day with no financial loss to the Department. As a result of the error, both the Core Department and Arvato have reviewed and tightened its payment process to avoid similar errors in the future.

The remaining £0.7 million of errors relate to miscellaneous items in the Driver & Vehicle Licensing Agency and Maritime & Coastguard Agency. Again, no losses were incurred.

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