- A scathing report by the Commons Public Accounts Committee ( PAC ) criticises the Ministry of Defence (MoD) for failing to tackle the “apparent normalisation of fraud” within its operations.
- The report estimates the MoD loses £1.5 billion annually to fraud, but the PAC deems this figure unreliable, suggesting the department lacks a credible understanding of its potential losses.
- The MoD recovers only 48p for every £1 spent on combating fraud and economic crime, significantly below the government's target of £3 for every £1 recovered.
- The PAC highlighted defence procurement as highly susceptible to fraud, noting little evidence that the MoD's management deters or penalises dishonest contractor behaviour, with £400 million in invalid contract payments halted in 2024/25.
- An MoD spokesperson stated the figures primarily relate to a previous government, claiming they are “turning that around” with improved recovery rates and new reforms, aiming to meet the £3 return target by 2028.
IN FULL
Ministry of Defence accused of failing to tackle ‘normalisation of fraud’ after £1.5bn annual loss
