PRESS RELEASE

12 JUNE 2008

PR/17/07/08

NATIONAL FRAUD INITIATIVE A VALUBLE TOOL IN FIGHT AGAINST FRAUD

A PAC Report on the National Fraud Initiative, published today, states that this new initiative will benefit not only in the fight against fraud and error but will also help to identify those who are not receiving their full entitlement to benefits.

The Initiative will shortly be rolled out to all of the local Government Departments and public bodies and the Report details how it will operate under the auspices of the Northern Ireland Audit Office.

Committee Chairperson Paul Maskey, MLA said:

“It is unusual for the PAC to produce a report of this nature but the Committee felt that the initiative has such potential for change that we felt it was justified in these circumstances.

“NFI is not just about identifying fraud and error, which it does very well, but can also identify those cases where individuals may not be receiving the full range of benefits to which they could be entitled. This is to be welcomed.”

The Committee took evidence from the Associate Director of the Audit Commission who stated that over 1500 bodies participated in the last exercise and in excess of £400millon in fraud and overpayments has been identified to date.

Commenting on the Audit Committee evidence, Paul Maskey said,

“The Committee was particularly impressed with the presentation from Peter Yetzes, Associate Director in the Audit Commission. Successes have come in diverse areas such as Housing Benefit, illegal immigration and occupational pensions.

“The NFI process will match data held on different computers—for example, employment and benefit claims. While NFI has had some limited use here in the past, it is hoped that the first major data matching exercise will begin in October 2008. The Committee looks forward to seeing the results.”

ENDS

Notes to Editors

• NFI is based on a simple process where the data held on one computer system is matched with the data held on another system. For example, if a data match occurs between employment data and benefits claims data then this would require further investigation.
• The NIAO is currently working on a Code of Practice in co-operation with the Information Commissioner to ensure that individual rights are protected. This Code will provide the basis on how the Audit Office will take forward and manage the process.

• Standing Orders under Section 60(3) of the Northern Ireland Act 1998 have provided for the establishment of the Public Accounts Committee (the Committee). The main statutory function of the Committee is to consider accounts and the reports by the Comptroller and Auditor General for Northern Ireland (C&AG) laid before the Northern Ireland Assembly.
• The C&AG is head of the Northern Ireland Audit Office (NIAO) and is empowered to investigate any area of expenditure and has a statutory right of access to all files and papers in Departments and public bodies.

The PAC Committee members are:-
Mr Paul Maskey, (SF) Chairperson***
Mr Roy Beggs, (UUP) Deputy Chairperson
Mr Trevor Lunn ( Alliance)
Mr Jonathan Craig (DUP)
Mr Simon Hamilton (DUP)
Mr David Hilditch (DUP)
Mr Jim Wells(DUP) *
Ms Dawn Purvis (PUP)
Mr Mitchel McLaughlin (SF)
Mr Thomas Burns (SDLP)**
Mr John Dallat (SDLP)

* Mr Jim Wells (DUP) replaced Mr Ian McCrea (DUP) on 26 May 2008.
** Mr Thomas Burns (SDLP) replaced Mr Patsy McGlone (SDLP) on 4 March 2008.
***Mr Paul Maskey (SF) replaced Mr John O’Dowd (SF) as Chairperson on 20 May 2008.

Media enquiries to:
Debra Savage,
Information Office, Parliament Buildings, Belfast. BT4 3XX
Tel. 028 90521405
Mobile 07920 864221
Email: debra.savage@niassembly.gov.uk
Website archive.niassembly.gov.uk