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Too much secrecy: Cllr Piers Wauchope |
Town Hall hit by cash fraud
Senior staff member arrested over
‘serious discrepancies’ in bank accounts
A SENIOR member of staff at the Town Hall has been arrested
over allegations of fraud concerning the bank accounts of Camden’s
most vulnerable residents.
The 56 year-old man was arrested by detectives two weeks
ago in connection with a series of serious discrepancies involving
the accounts of elderly and mentally-ill people. He has been
quizzed by detectives and released on bail with a strict order
to return to Holborn Police Station next month.
Officials are guarding his identity and how much money is involved
but an insider said that the amount is “substantial”,
potentially running into hundreds of thousands of pounds.
Opposition councillors last night (Wednesday) demanded that
the scale of the alleged fraud is made public immediately.
The missing money relates to accounts that the council looks
after on behalf of residents unable to handle their own finances.
Social services manages around 500 accounts. It is not clear
how many accounts are affected but relatives of residents involved
are being informed. A second council staffer has been suspended
by the council as part of the investigation but has not been
arrested.
Labour social services chief Councillor Maggie Cosin insisted
that lost money would be reimbursed.
She said: “These types of investigation can take a long
time while thorough evidence is gathered. I hope the situation
is resolved swiftly for the residents, their families and our
staff.”
Barry Sullivan, from the Camden Town Neighbourhood Advice Centre,
said he raised concerns more than a year ago about the handling
of his friend Fred Newman’s account which was managed by
the council. Mr Newman died last June and friends have been
left wondering whether his money was affected.
Mr Sullivan said: “We questioned what was happening with
Freddie’s account but everything was made so difficult
for us.”
A council spokeswoman said that the Town Hall would not comment
on individual cases.
The latest investigation follows a £1.7 million fraud
in the housing benefits division at the Town Hall two years
ago. Council employee Hieten Patel was arrested for siphoning
benefits cash into an accomplice’s account. He was jailed
last year.
Councillor Piers Wauchope, leader of the Conservative group
at the Town Hall, said yesterday (Wednesday): “It is less
than two years ago that we learned that Camden had lost £1.7m
in a housing benefits fraud. On that occasion employees were
reprimanded for letting the New Journal know how much had been
stolen. The council is just as obsessed with secrecy today and
will not come clean about how much has been taken.”
Liberal Democrat chief Councillor Keith Moffitt added: “I
want to see an urgent and thorough investigation to make sure
nothing like this ever happens again.” |
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