27 June 2003
The way that public money has been given to homeowners to improve dilapidated properties in Wales has proved susceptible to fraud, and changes to be introduced next month could escalate problems, auditors reported this week.
A study by the Auditor General for Wales, published on June 26, claims that the system for distributing the £1.5bn of public cash spent on improving private sector housing since 1990 has 'proved susceptible to maladministration and fraud'.
The detection rate of fraudulent claims in Wales was five times higher than in England.
Housing issues have accounted for a third of all complaints to the Local Government Ombudsman for Wales, the watchdog said, yet a recent focus group of housing professionals found that things could get worse when a new distribution system is introduced in July.
The auditors concluded that, while the new set-up would transfer key powers from the Welsh Assembly to local authorities, 'fraud could continue to be a problem or even increase'.
Auditor general Sir John Bourn warned: 'In order to realise the potential benefits, the Assembly will need to manage certain risks.'
PFjun2003
