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Most of the Department’s estimated £1.5 billion exposure to fraud loss is in its procurement...
Conclusion
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 fraud risks in procurement include suppliers overcharging for goods and services and pre-contract fraud, such as bid rigging.45 Despite this significant fraud risk exposure, the Department has reported low levels of detected fraud in its procurement and relatively few criminal outcomes such as prosecution that could serve as a deterrent.46 The NAO’s report notes an impression among the Department’s counter- fraud and assurance teams that their colleagues in commercial teams do not routinely consider supplier relationships from a counter-fraud perspective.47 37 Q 30 38 Qq 30-31 39 Qq 31-32 and 34 40 Qq 31 and 39 41 Q 39 42 Q 39 43 C&AG’s Report, para 4 44 C&AG’s Report, para 2.6 45 C&AG’s Report, Figure 5 46 C&AG’s Report, paras 4-5 47 C&AG’s Report, para 2.14 13
Source
Committee
Public Accounts Committee
Report
Third Report - The MoD’s tackling of economic crime and misconduct
29 May 2026
HC 91
Addressee Bodies
HM Treasury
Timeline
Report published
29 May 2026