Treasury ‘stopped Britain’s FBI from investigating Covid loans fraud’

National Crime Agency said to have outlined its investigative capabilities and ‘what we can do to help’

ByEdward Malnick, SUNDAY POLITICAL EDITOR

29 January 2022

Treasury officials have been accused of rebuffing an attempt by the National Crime Agency (NCA), known as Britain’s FBI, to launch a sweeping investigation into fraudulent use of taxpayer-funded Covid handouts.

The NCA is said to have  outlined its investigative capabilities and “what we can do to help”, but a source said: “The Treasury effectively said: ‘Butt out of this.'”

Another source said they believed that the move was designed to prevent “embarrassment” about the scale of fraud involving public funds.

In the absence of a wide-ranging NCA investigation, the body has instead been involved ad hoc in specific cases and has been providing “specialist capability” to support work being carried out by the National Investigation Service, a little-known body said to only have the capacity to be able to investigate 200 cases per year.

On Saturday night, a Treasury spokesman said that officials “don’t recognise these claims”. The spokesman did not respond when invited to deny that the NCA approach was rebuffed. The NCA declined to comment.

The claims follow the resignation, at the Lords despatch box, of Lord Agnew, a Cabinet Office minister, over the Government’s “lamentable track record” on tackling fraud relating to the multi-billion pound bounce back loan scheme.

Lord Agnew resigned over the Government's 'lamentable track record' on tackling Covid loan fraud
Lord Agnew resigned over the Government’s ‘lamentable track record’ on tackling Covid loan fraud CREDIT: PA Wire

A wave of fraud linked to the scheme is expected to cost the taxpayer as much as £5 billion, and Lord Agnew told peers the Treasury appeared to have “no knowledge of, or little interest in, the consequences of fraud to our economy or society”.

His intervention prompted Rishi Sunak, the Chancellor, to say: “I’m not ignoring it, and I’m definitely not writing it off.”

But a source told The Telegraph the NCA previously approached Mr Sunak’s officials to outline its investigative powers and offer to help, but was “rebuffed by the Treasury”.

Speaking in the Lords, Lord Agnew described a “failure by Treasury or [Department for Business, Energy and Industrial Strategy] officials to understand the complete disjunction between the level of criminality –probably hundreds of thousands of pounds – and enforcement capability. For example, NATIS, a specialist agency, can handle around 200 cases a year; local police forces might double that”.

The Treasury spokesman said: “We already work with the NCA on bounce back loan scheme fraud, who take on the most serious cases. Fraud is totally unacceptable, and we’re taking action on multiple fronts to crack down on anyone who has sought to exploit our schemes and bring them to justice.

“Our Covid support schemes were implemented at unprecedented speed to protect millions of jobs and businesses at a time when families needed it the most.”

https://www.telegraph.co.uk/politics/2022/01/29/treasury-stopped-britains-fbi-investigating-covid-loans-fraud/

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