04 November 2010
Spending constraints and staff cuts in the wrong places could leave the public sector open to fraud, PricewaterhouseCoopers (PwC) has said.
Employees affected by redundancy, as well as suppliers faced with contract termination, could seek to maximise their benefits before leaving, potentially putting the public sector at risk of fraud, a report by the firm found.
The study, Navigating Your Way Through Stormy Waters, notes that the increased threat of scams will impact on various parts of the public sector at different times as the cuts take effect.
Ian Elliott, partner at PwC, said: "In good times, loss through fraud is less visible as delivery of services is still possible, even with a certain level of misappropriation. Things are tightening now and businesses everywhere are seeking to reduce loss through waste in all its forms."
The news comes just weeks after a study by Badenoch & Clark found that many public sector workers are worried that their skills will not be useful to private companies.