Businesses facing grant claim probe

Angus businesses have been reported to police over suspect Covid grant bids totalling almost £45,000. But local authority counter fraud staff prevented nearly £75,000 more being paid out to a handful of fraudulent applicants last month.

Council investigators uncovered a string of dodgy applications for cash support offered to firms hit hard by Covid-19 restrictions.

Some related to claims for empty premises which businesses had moved out of.

Counter fraud officials said the claims are a fraction of the legitimate overall payouts to Angus businesses struggling through the pandemic.

They have pledged to remain vigilant over further potential frauds.

Internal audit service leader Cathie Wyllie said the claims came through the Strategic Framework Business Fund (SFBF).

The Scottish Government scheme provided grants to businesses required to close by law or significantly change their operations due to Covid-19 restrictions from last November.

Payments dependent on rateable value were made on a four-weekly basis.

Some applicants were also eligible for other top-up payments.

Ms Wylie told Angus scrutiny and audit councillors: “Activity in February in respect of three SFBF payments raised suspicion.

“These were investigated by the counter fraud team and each found to be potentially fraudulent.”

Counter fraud staff checked almost 500 claims from nearly 900 due to be paid in March.

All but seven were valid. Those included four February payouts totalling £43,800.

“In three further cases it was established that businesses had vacated their premises and were no longer eligible for the grant,” said the official.

In total, the counter fraud exercise prevented a further £73,500 being paid out in March which businesses were not entitled to.

The seven cases represented 0.007% of processed payments.

“This exercise served to offer reassurance that fraud in the scheme, though present, is at the lower end of the scale,” said Ms Wylie.

“We’ve actually undertaken some further testing since this piece of work and we haven’t identified any further fraudulent activity.”

Councillors were told there had been no indication at this stage from Police Scotland on whether the latest reports had led to anyone being charged.

REVIEW: Council workers checked Covid claims. Picture by Kim Cessford.