Agenda item

To consider a report by the Head of Legal, HR and Democratic Services, on the revisions to the Council Anti-Fraud and Corruption Policy (copy enclosed).

A report by the Head of Legal, HR and Democratic Services (HLHDS) had been circulated previously.

The HLHDS introduced the report and explained that the Council employed over 4,000 staff and spends approximately £250 million per year.  It commissioned and provided a wide range of services to individuals and households and worked with a wide range of private, public and voluntary sector organisations.

He highlighted the ongoing risk of loss due to fraud and corruption from both internal and external sources, and the risk of bribery as the Council provided and procured goods, works and services.  Proportionate systems had been introduced to minimise risks and these were kept under constant review.  The systems and procedures had been set out in the guidance at paragraph 5.12.

A draft revised Policy, Appendix 1, had been a single lengthy document split into two documents.  Appendix 1 was a statement of Policy containing the main principles upon which the Council would approach fraud, bribery and corruption.  Appendix 2 was a guidance document explaining the background to and the policies and procedures in place to support the Policy.  The HLHDS provided a detailed summary of the contents of the Appendices.

He highlighted the importance that any policy purporting to counter the threat of fraud and corruption be kept up to date and reviewed in light of new legislative, technological and professional developments.  The Policy would be reviewed every three years pending any specific changes in legislation.  It was explained that from April, 2015 the Department of Works and Pensions would be running a single fraud investigation service and the Policy would be amended accordingly.

The title of the Policy had been amended to include a reference to bribery, to take into account changes to legislation brought about by the Bribery Act 2010.  The guidance also took into account best practice guidance such as the CIPFA "Red Book 2 - Managing the Risk of Fraud".

The Policy Statement and procedures supporting it provided a clear message that the Council would not tolerate any impropriety by employees, Elected Members or third party organisations.  The HLHDS confirmed that it was important that vigilance was maintained and that all employees, Elected Members and partners were aware of the process for reporting concerns or suspicions.  Appendix 2 provided clear advice on the reporting process.  There was a clear statement of the Council's commitment to taking robust enforcement action where illegal or corrupt activity was detected.  It was confirmed that the Council would continue to adapt and adopt a proactive approach to countering fraudulent activities, and Internal Audit would undertake an annual review of the effectiveness of the controls.

In response to a suggestion from Councillor H.L. Holland that the Council’s intent to deal with any related misdemeanours be made clearer and more robust, the HLHDS agreed that No. 8 of the Policy Statement, Page 55, be amended to read “The Council does not, and will not, engage indirectly in or otherwise encourage bribery.  The Council is committed to the prevention, deterrence and detection of bribery.” and No. 9 be included to read “The Council’s adopts a position of zero tolerance towards fraud, theft, corruption and bribery”.

In response to a question from Mr P. Whitham, the HLHDS agreed that reference to Elected Members in Appendix 2 be amended to included Co-opted Members, or the inclusion of a definition of Members.  Mr Whitham also indicated that there was no reference made to Bribery, only to Fraud and Corruption, on Page 18 of Appendix 1 and Page 32 of Appendix 3.

RESOLVED – that Corporate Governance Committee, subject to the issues raised, note the contents of the draft Anti Fraud, Corruption and Bribery Policy and recommend it for approval by Cabinet.

   (GW to Action)