A COUNTER fraud team set up in south Essex to investigate pandemic fraud cases lacked the legal power to carry out investigations, it has been revealed reports the Local Democracy Reporter.
The National Investigation Service (Natis) was set up in Thurrock Council in 2018 before being handed a Government contract to investigate fraud in the multibillion-pound Covid-19 government finance programme being administered by councils, including Southend and Castle Point.
Natis operated within Thurrock Council but has now been disbanded by the Government and fraud investigations moved to the Insolvency Service.
Accountancy firm Mazers was commissioned by Thurrock Council to carry out an independent investigation into Natis and the report has now been released following a freedom of information request.
The report, originally published in March 2024, found Natis operated with “limited governance” which “put Thurrock Council and taxpayers at risk” at a time when the council was heading towards virtual bankruptcy over disastrous solar power investments.
Natis was being run “inappropriately independent of Thurrock Council”, the report reveals.
The report included examples of Natis appearing to present itself as separate from Thurrock Council, including official forms bearing a police email address and a job description calling Natis an “HM Government function”.
The report reveals “most if not all” Thurrock Council staff seconded to work for Natis had not received proper training and had expired contracts which are required under the Proceeds of Crime Act 2002.
Mazars warned: “Exercising powers with expired secondments, their actions could be legally challenged.
“Any evidence collected, being information illicitly obtained, may be deemed invalid or unlawful, and have to be returned, possibly derailing investigations.”
The council says it has taken legal advice and is confident any prosecutions remain safe.
Valerie Morris Cook, councillor responsible for resources, said: “We do not accept that all of the findings of the report are correct, but we have previously brought the main findings to cabinet with an action plan that we used to improve the service. The service has been transformed since October 2023 and has continued since then to successfully investigate and prosecute criminals who have targeted the public purse.”
