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.
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.