The Assistant Director for Investigation, Enforcement and Community Safety presented the report to the Committee and summarised the performance of the department for Quarter 3 (Q3) of 2022/23.

·            3 reports of suspected fraud have been received

·            7 Investigations have been closed as ‘no fraud’

·            4 sanctions have been delivered in cases of proven fraud

·            1 Social housing property has been recovered this quarter

·            107 active investigations are currently being conducted

The Assistant Director for Investigation, Enforcement and Community Safety explained the circumstances surrounding the Counter Fraud Investigation Team’s separation from NATIS which was necessary due to the function of NATIS expanding significantly. He confirmed they still have access to the specialism provided by NATIS but the Counter Fraud Investigation Team will be concentrating on matters relating to Thurrock only whereas NATIS has a national function.

The Assistant Director for Investigation, Enforcement and Community Safety  confirmed that the team are targeting social housing and offences under the Protection of Social Housing Fraud Act. When offences like this are identified, individuals are dealt with as per the legislation and the priority is the return of social housing through recovery to the authorities housing stock. For every property that is recovered and returned to the housing stock from those that do not need, live in or qualify for them, £23,500 is, on average, saved by other council departments in various costs. The CFI team has recovered 2 social housing properties in the first 3 quarters of 2022/23 totalling a saving of £47,000 for the council as well as completing 7 separate sanctions, with a detected crime value of £192,300.

The Assistant Director for Investigation, Enforcement and Community Safety highlighted that the CFI had detected £4.62 of fraud per £1 spent. The CFI has also saved the council £1.13 for every £1 the CFI has spent. He stated that these two areas of work show good value for money.

Councillor Thandi queried whether the Assistant Director for Investigation, Enforcement and Community Safety had any input in the Best Value Inspection.

The Assistant Director for Investigation, Enforcement and Community Safety responded that the report is being completed independently but he confirmed he had been interviewed as part of the inspection.

Councillor Ralph commented that it has been misled in the press that the Council was doomed now the team has been narrowed. Councillor Ralph queried whether as a fully dedicated team they will be able to increase their services.

The Assistant Director for Investigation, Enforcement and Community Safety clarified that they will be a focused team and will now not be pulled away on national matters. The main change is the senior management as opposed to boots on the ground. He reassured the Committee that the CFI team will investigate all offences that come through to them.

The meeting discussed how a resident can report the potential sub-letting of Council properties.

The Assistant Director for Investigation, Enforcement and Community Safety confirmed they can report this via the Council’s website or by email to reportfraud@thurrock.gov.uk . The Assistant Director for Investigation, Enforcement and Community Safety confirmed they will also be completing a campaign and training Council staff on this.    

Councillor Collins queried whether housing fraud is usually completed by organised crime or by individuals.

The Assistant Director for Investigation, Enforcement and Community Safety stated that he had seen both. When it is completed by organised crime it is often called “cuckooing”.

Charles Clake noted at paragraph 3.5 of the report the team hoped to increase value for money. He queried what a good target ratio would be going forward.

The Assistant Director for Investigation, Enforcement and Community Safety stated that was difficult to say but he would estimate 3 for 1.

Councillor Ralph questioned if the Council loses at court whether the legal fees are paid by the Council.

The Assistant Director for Investigation, Enforcement and Community Safety  responded that the legal fees can be charged to the Defendant if found guilty and this can be staggered if the Defendant doesn’t have the funds to pay immediately.

Councillor Thandi queried if the team cover private homes rented as HMO’s.

The Assistant Director for Investigation, Enforcement and Community Safety responded that this falls within the remit of the Housing department at present and they would therefore pass on any referrals to the Housing department

RESOLVED:

1.1      The Standards and Audit Committee comments on the  performance of the Counter Fraud & Investigation Department.