UK MoD Recoups Under Half of Funds Spent on Fighting Fraud

(MENAFN) The UK Ministry of Defense (MoD) has recouped less than half of the funds it spent over the past four years tackling fraud and economic crime, according to reports from the country’s independent public spending watchdog.

The National Audit Office (NAO) said the MoD’s efforts to combat criminal activity—including procurement fraud, theft of assets like laptops, weapons, and armor, as well as pay and expenses fraud—have been only partially effective.

"This is because of ongoing challenges that include a limited shared understanding of departmental objectives, a fragmented structure leading to inefficiencies in investigations, and a historic lack of trust between counter-fraud and police teams," the report stated.

The NAO also noted that the ministry estimates potential exposure to fraud at up to £1.5 billion ($2 billion) annually, primarily linked to procurement. Despite receiving hundreds of allegations each year, relatively few lead to detection, disruption, or recovery.

Government guidelines suggest public bodies should save £3 ($4.12) for every £1 ($1.37) spent on counter-fraud work. Between 2021-2022 and 2024-2025, the MoD reported a return of just £0.48 ($0.66) for each £1 spent, highlighting significant inefficiencies, the watchdog said.

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