Private Eye on Fraud and Corruption on Workfare Schemes

gogol-dead-souls-en

Gogol’s book, ‘Dead Souls’, about a man who mortgages dead serfs.

Last fortnight’s issue also carried this story about allegations of fraud on its workfare programmes.

‘Fraud Popular

The Department of Work and Pensions (DWP0 has been trying to bury bad news about allegations of fraud on its various welfare-to-work schemes even though some were so serious it referred them to the police for investigation.

According to the department’s Report on Contracted Employment Provision, which was slipped out on the DWP website nearly a year late and under cover of darkness, in 2012-13 the government received more allegations of fraud by workfare contractors than in previous years. Though the report named no names, it blamed the “substantial media and parliamentary scrutiny” of bad behaviour by firms like A4E and Working Links on the Work Programme and other jobs schemes.

The DWP believed there was a “case to answer” in five cases, three of which were referred to police. Prosecutions did not follow because “proceedings were considered by the police to be unlikely to result in a conviction or were not considered to be in the public interest”.

The alleged frauds followed the familiar pattern of false claims for fees and falsified documents about what service had (or had not) been provided; and the contractors were simply allowed to pay back the cash. The DWP said none of the dodgy cases related to the Work Programme, but did not say which employment scheme was involved.

According to the report, DWP inspectors also found scant concern among contractors for properly protecting public money from misuse. Of 49 contractors inspected, 29 had “weak” or “limited” assurance levels for handling government cash. Only 20 offered “reasonable” or “strong” protection.

Not surprisingly, the DWP seemed reluctant to trumpet these findings from the rooftop. Though permanent secretary Robert Devereux promised MPs he would produce the report in December 2012, it was actually slipped out on the DWP website with no press announcement last October.

The Eye submitted a freedom in information request last July asking where it was. We finally received an answer this January – and an apology “for not responding earlier; no discourtesy was intended”. Of course, if a benefits claimant took so long responding to the DWP, an apology might not suffice.’

A few months ago Serco and a number of other firms were revealed to have engaged in massive fraud to gain government contracts. These included putting in claims for guarding criminals, who had long ago been released. The whole affair has more than a little of Gogol’s class work, Dead Souls, about it. Gogol was another 19th century Russian radical from the Ukraine. The book follows Chichikov, a Russian middle-ranking nobleman, as he attempts to get rich by buying up dead serfs from the surrounding gentry in order to relieve them of their tax burden. Once enough of these have been acquired, Chichikov plans to take out a loan against them, and then retire with the money and status as a true man of property to a country estate. It’s a grotesque satire on Russian society at the time. It was written in 1841, about twenty years before Alexander II emancipated the serfs in the 1860s. Serfdom is, however, coming back under the guise of workfare, with companies like A4E and Atos aiming to supply them, and a number of charities and big businesses all too willing to bid for contracts to employ them. And with A4E, Working Links, Serco and other companies committing fraud to get these government contracts, Dead Souls is now extremely relevant to 21st century Britain. Gogol’s novel essentially describes the same scam used by these companies to get rich by deceiving the government bureaucracy. It may not be called serfdom, but Chichikov is alive and well and the managing director of A4E, Serco and Atos.

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9 Responses to “Private Eye on Fraud and Corruption on Workfare Schemes”

  1. Private Eye on Fraud and Corruption on Workfare... Says:

    […] Gogol's book, 'Dead Souls', about a man who mortgages dead serfs. Last fortnight's issue also carried this story about allegations of fraud on its workfare programmes. 'Fraud Popular The Department…  […]

  2. Editor Says:

    Reblogged this on kickingthecat.

  3. Mike Sivier Says:

    Reblogged this on Vox Political.

  4. A6er Says:

    Reblogged this on Britain Isn't Eating.

  5. Paul Smyth Says:

    Reblogged this on The Greater Fool.

  6. jaypot2012 Says:

    Reblogged this on Jay's Journal.

  7. Stephen Bunting Says:

    Eventually the Russians got sick of it and had a violent revolution …

  8. deaepleicester2013 Says:

    Reblogged this on Deaep Leicester.

  9. psychjim Says:

    Reblogged this on psychjim's Blog.

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