A4e facing fresh fraud investigations by DWP

This article was last updated on April 16, 2022

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The government has announced and launched an investigation into an allegation of attempted fraud against welfare to work company A4e by the Department for Work and Pensions.

The Department for Work and Pensions (DWP) has told to be made aware of an allegation of attempted fraud in relation to a Mandatory Work Activity contract with the firm, which is already under a police investigation in connection with historical allegations on the firm.

It has been stated that the new allegation has resulted in an immediate commencement of DWP’s independent audit of all their commercial relationships with A4e. In addition to the audit review, A4e is also required to give auditors the full access to all related documents and the right to interview any A4e employees. DWP is taking this issue quite seriously and has made it clear to A4e that in case they get to have any evidence of systemic fraud in DWP’s contracts with A4e, they will immediately terminate their commercial relationship with the firm without any delay.

On the other hand, A4e is saying that the audit board has been made clear regarding the issue that such type of fraudulent allegations or illegal misconduct are handled seriously. A4e is never supportive of any type of illegal activity. The concerns raised by DWP are acknowledged by A4e and any kind of investigations are fully welcomed from their side. A4e has a staff of more than 3,500 workers operating in 200 offices in U.K. All of them will fully cooperate with the audit committee and will make the facts available to them.

In the past, starting from December 2005 to date, nine cases relating to A4e have been referred to the Department of Work and Pensions to review claims submissions. Out of all of the nine cases, one that happened in May 2008 had resulted in the trial of an individual member of A4e staff.  The other case is now being handled by Thames Valley Police. The rest of the closed cases resulted in DWP’s view as clear from any kind of malpractice.

Now, A4e has asked lawyers White & Case LLP to lead an independent and thorough audit of A4e’s practices and controls. This process of monitoring and review will be carried out in parallel, and all findings will be reported to DWP.

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