The MoD’s tackling of economic crime and misconduct

Public Accounts Committee Open Inquiry
Opened: 12 Dec 2025 Parliament page
The Ministry of Defence (MoD) responds to economic threats and investigates fraud and corruption perpetrated against it through several police forces, including its Fraud Defence team, MoD Police, and the Service police forces, as well as through its own central team. MoD’s last public estimate of its exposure to fraud … Read more
3 Recommendations
27 Conclusions
1 Report
1 Oral session
1 Letter
1 Event
Activity timeline 4 events
Oral evidence sessions 1 session
Aneen Blackmore · Ministry of Defence Jeremy Pocklington CB · Ministry of Defence Jim Carter · Ministry of Defence Simon Dobinson · Ministry of Defence Police
Recommendations & Conclusions
30 results
2 Conclusion
Third Report - The MoD’s tackling …
The Department has not responded to the huge potential fraud risk it faces with the...
The Department has not responded to the huge potential fraud risk it faces with the degree of focus and leadership we would expect. Previous reviews of Defence policing have repeatedly identified siloed working, weak ownership and a lack of trust … Read more
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3 Recommendation
Third Report - The MoD’s tackling …
The Department does not have a reliable estimate of its fraud losses or the information...
The Department does not have a reliable estimate of its fraud losses or the information it needs to effectively prioritise counter-fraud activity. While it has reported that it may be exposed to up to £1.5 billion of fraud losses each … Read more
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4 Recommendation
Third Report - The MoD’s tackling …
The Department faces a particularly high risk of fraud in its procurement, but there is...
The Department faces a particularly high risk of fraud in its procurement, but there is little evidence that its work to select and oversee contractors deters or penalises dishonest behaviour. Procurement makes up most of the Department’s estimated £1.5 billion … Read more
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5 Recommendation
Third Report - The MoD’s tackling …
The fragmented structure of the Department’s counter-fraud and police teams limits its ability to respond...
The fragmented structure of the Department’s counter-fraud and police teams limits its ability to respond effectively to allegations of fraud and economic crime or to understand how cases are progressing. The Department is a large and complex organisation, and it … Read more
HM Treasury
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6 Conclusion
Third Report - The MoD’s tackling …
The Department has yet to capitalise on the use of new technologies and data analytics...
The Department has yet to capitalise on the use of new technologies and data analytics to detect and prevent more fraud. We recently found that emerging technologies such as data analytics are a vital tool to help government tackle fraud … Read more
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7 Conclusion
Third Report - The MoD’s tackling …
The issues faced by the Department around counter-fraud are not unique, and many of the...
The issues faced by the Department around counter-fraud are not unique, and many of the lessons can be applied across government. All parts of government need to prioritise building a strong counter-fraud culture, clear leadership accountability, a better understanding of … Read more
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1 Conclusion
Third Report - The MoD’s tackling …
On the basis of a report by the Comptroller and Auditor General, we took evidence...
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Ministry of Defence (the Department) on its management of financial losses due to fraud and other economic crime.1
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8 Conclusion
Third Report - The MoD’s tackling …
The Department told us it was confident that these plans would lead to improved counter-fraud...
The Department told us it was confident that these plans would lead to improved counter-fraud performance and it believes it is on track to meet the government’s expected return of £3 for every £1 spent on counter-fraud by 2028, “if … Read more
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9 Conclusion
Third Report - The MoD’s tackling …
Previous reviews of Defence policing have highlighted issues relevant to how the Department manages fraud...
Previous reviews of Defence policing have highlighted issues relevant to how the Department manages fraud and economic crime. These include siloed working and mistrust between counter-fraud and police teams, inefficiencies and duplication, while the relatively few criminal investigations tend not … Read more
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10 Conclusion
Third Report - The MoD’s tackling …
The Department acknowledged that fraud is a serious risk, and that as a large, complex...
The Department acknowledged that fraud is a serious risk, and that as a large, complex organisation that spends very significant amounts of money on complex procurement, it has a particular reason to be focused on fraud compared with other parts … Read more
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11 Conclusion
Third Report - The MoD’s tackling …
The Department recognised that there has been a “tricky relationship” in the past between its...
The Department recognised that there has been a “tricky relationship” in the past between its counter-fraud and police teams, with issues around willingness to share information impacting the timeliness of reporting on case progress.22 It told us it believes these … Read more
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12 Conclusion
Third Report - The MoD’s tackling …
The NAO report notes that some areas within the Department do not consider fraud to...
The NAO report notes that some areas within the Department do not consider fraud to be a major risk and can be reluctant to engage with counter-fraud teams.25 The Department told us a number of times that it is not … Read more
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13 Conclusion
Third Report - The MoD’s tackling …
The Department told us that it plans to strengthen its leadership and oversight of the...
The Department told us that it plans to strengthen its leadership and oversight of the fraud function through the role of Director General Finance, who has responsibility for fraud on the Department’s Executive Committee.28 As part of this the Department … Read more
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14 Conclusion
Third Report - The MoD’s tackling …
The Department estimates that it is exposed to up to £1.5 billion a year of...
The Department estimates that it is exposed to up to £1.5 billion a year of losses to fraud and economic crime. The NAO’s report notes that this estimate is based on external industry benchmarks, not built up from its understanding … Read more
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15 Conclusion
Third Report - The MoD’s tackling …
The Department explained that it considers its existing £1.5 billion estimate of potential annual fraud...
The Department explained that it considers its existing £1.5 billion estimate of potential annual fraud loss to be an “academic construct” as it is based on benchmarking drawn from external organisations.33 It acknowledged that developing a more robust estimate is … Read more
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16 Conclusion
Third Report - The MoD’s tackling …
Despite being asked repeatedly during the session the Department could not give us a firm...
Despite being asked repeatedly during the session the Department could not give us a firm date for when it would have a robust estimate in place.35 Following the session the Department wrote to tell us that its work to develop … Read more
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17 Conclusion
Third Report - The MoD’s tackling …
The Department explained that it is working closely with the Public Sector Fraud Authority to...
The Department explained that it is working closely with the Public Sector Fraud Authority to identify the best methodologies, but cautioned that measuring potential fraud loss is “really difficult”.37 The Department also explained that it is seeking to learn from … Read more
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18 Conclusion
Third Report - The MoD’s tackling …
The Department also explained that it plans to improve and make more active use of...
The Department also explained that it plans to improve and make more active use of its existing risk registers to help it focus on where the estimate should be matured and what methodologies it can use.40 It added that going … Read more
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19 Conclusion
Third Report - The MoD’s tackling …
Most of the Department’s estimated £1.5 billion exposure to fraud loss is in its procurement...
Most of the Department’s estimated £1.5 billion exposure to fraud loss is in its procurement expenditure.43 The Department spends around £40 billion a year on Defence procurement, which it expects to rise to over £70 billion by 2028–29.44 Examples of … Read more
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20 Conclusion
Third Report - The MoD’s tackling …
The Department told us it believes it has good controls throughout the contract life cycle...
The Department told us it believes it has good controls throughout the contract life cycle to prevent and minimise fraud.48 It told us its use of ‘open-book’ contracts is a particular strength as this enables oversight of suppliers.49 The Department … Read more
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21 Conclusion
Third Report - The MoD’s tackling …
The Department told us it recognised the issues raised in the NAO’s report around the...
The Department told us it recognised the issues raised in the NAO’s report around the lack of join up between its commercial and counter- fraud teams.52 It told us that it believes it undertakes robust negotiations and has strong commercial … Read more
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22 Conclusion
Third Report - The MoD’s tackling …
We asked the Department how it manages the risk of fraud when its commercial staff...
We asked the Department how it manages the risk of fraud when its commercial staff move to roles with its suppliers.59 The Department explained it follows best government practice around business appointment rules. This includes conflict of interest declarations and … Read more
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23 Conclusion
Third Report - The MoD’s tackling …
The Department’s capability is split across multiple teams that function mostly independently, with siloed working,...
The Department’s capability is split across multiple teams that function mostly independently, with siloed working, duplication, unclear roles, and missed investigative opportunities contributing to weak outcomes and low financial returns on counter-fraud activity.63 The Department’s counter- fraud and police teams … Read more
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24 Conclusion
Third Report - The MoD’s tackling …
The NAO highlighted that the Department’s teams lack awareness of each other’s criteria and thresholds...
The NAO highlighted that the Department’s teams lack awareness of each other’s criteria and thresholds for pursuing or prioritising cases.67 We questioned the Department whether this, combined with its structure, would make it challenging for it to decide the most … Read more
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25 Conclusion
Third Report - The MoD’s tackling …
The Department told us it is “improving and consolidating [its] approach to the Confidential Hotline...
The Department told us it is “improving and consolidating [its] approach to the Confidential Hotline and the case management system”, as well as exploring the possibility of providing officials in Fraud Defence with access to the Ministry of Defence Police … Read more
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26 Conclusion
Third Report - The MoD’s tackling …
We asked the Department about the feedback given to whistleblowers from the Confidential Hotline.
We asked the Department about the feedback given to whistleblowers from the Confidential Hotline. The Department told us that feedback is provided to whistleblowers in every case, noting that details provided would be case-specific. However, the separate case management systems … Read more
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27 Conclusion
Third Report - The MoD’s tackling …
We challenged the Department on how it intends to improve coordination across defence and deliver...
We challenged the Department on how it intends to improve coordination across defence and deliver better value for money. The Department acknowledged these issues and told us it is seeking to improve coordination and strengthen governance as part of its … Read more
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28 Conclusion
Third Report - The MoD’s tackling …
We recently reported that emerging technologies such as data analytics are a vital tool to...
We recently reported that emerging technologies such as data analytics are a vital tool to help government tackle fraud and error, and recommended that government use data analytics to move from a system of detecting and recovering fraud, to one … Read more
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29 Conclusion
Third Report - The MoD’s tackling …
The Department told us that technology and analytics would enable it to review data in...
The Department told us that technology and analytics would enable it to review data in real time and strengthen controls but acknowledged that it is still at an early stage in developing these capabilities and requires a more systematic approach … Read more
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30 Conclusion
Third Report - The MoD’s tackling …
The Department told us it plans to move towards a more proactive use of technology...
The Department told us it plans to move towards a more proactive use of technology and data analytics in its counter-fraud efforts.90 As part of its Defence Reform programme, the Department told us it plans to strengthen its control environment … Read more
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Correspondence 1 letter
20 Apr 2026 To committee Letter from the Permanent Secretary of the Ministry of Defence to the Chair of the Public Accounts Committee relating to The MoD’s tackling of economic crime and misconduct, 20 March 2026
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