Review into the risks of fraud and corruption in local government procurement

The Ministry of Housing and Local Communities (MHCLG) has published its review into the risks of fraud and corruption in local government procurement in England. This report details the findings of a review into procurement fraud and corruption risks in local government procurement and includes case studies highlighting where fraud and corruption incidents have taken place and also includes best practice examples for mitigating these risks.

The LGA worked closely with MHCLG on this report and is thankful to those councils who participated in the research and workshops which have led to a comprehensive and inclusive report with far reaching recommendations. Although there is no silver bullet for tackling the issue of fraud and corruption within procurement, this review draws together a range of activities, resources and case studies which collectively help identify and mitigate the risks faced by councils. The case studies, provided by local authorities from their own experiences of incidents of fraud and corruption and examples of best practice in prevention, illustrate how risks can materialise and what can be done to mitigate them. The report also details anonymised examples of good practice already in place across England, providing excellent evidence of local authorities' innovation, commitment and collaborative approach.

In addition, the report includes a risk matrix, which highlights possible measures that councils can use to strengthen their resilience to the risks of fraud and corruption.

The report concludes with suggested activities to improve the response to fraud and corruption risks for local government and will serve as a valuable resource for councils across the country to learn from as well as shape the LGA’s sector led improvement offer to our members.

Review into the risks of fraud and corruption in local government procurement

Annex 1: survey questions

Annex 2: aggregate survey results

Annex 3: additional resources

Annex 4: fraud and corruption case studies sent in by councils - summary

Annex 5: examples of good practice

Annex 6: procurement fraud and corruption risk matrix

Annex 7: top ten asks of procurement

Annex 8: relevant local authority powers

Annex 9: legal framework

Annex 10: procurement fraud review checklist

Annex 11: data analytics tests