14 May 2004
An estimated £5m has been lost from public funds through abuse of a scheme set up to compensate victims of terrorism, a parliamentary report has said.
The Northern Ireland Affairs Committee, which produced the report on the Compensation Agency in Northern Ireland, said it found there had been 'significant and blatant abuse' of the Terrorism Act compensation scheme since its introduction in 2001.
The report looked at the role of the agency in supporting the victims of violent crime by providing compensation for serious injuries and financial loss.
Chair of the Northern Ireland Affairs Committee Michael Mates said members were 'extremely concerned' at the abuse. 'The number of claims increased significantly at a time when we would have expected a reduction because of a greatly reduced operational deployment of the Army,' he said.
'We believe this abuse may have resulted in the loss of more than £5m from public funds.'
PFmay2004
