The piece sets out to show that fraud is common in the New Deal programmes, but that the DWP doesn't publish the results of its investigations so it's hidden. The first part of the piece concentrates on Working Links, who forged clients' signatures and paperwork in Glasgow in 2007. Since that investigation, more fraud has been uncovered in Brighton, North Wales and Hackney. Then they turn to A4e, which is decribed as one of the biggest names in the industry. The fraud that the Observer reported on yesterday is mentioned, malpractice which took place over a 4 month period in 2007. But, says Channel 4, there was another case towards the end of 2008, also in Hull. An A4e employee was found to be colluding with an employment agency to state that factory jobs were intended to last for 13 weeks, and therefore attract a payment, when they were only ever meant to be temporary. A4e says that this was a "rogue operator" and two members of staff have been sacked. (In fact, it's common practice.)
Terry Rooney MP, who is the Chair of the Work & Pensions Select Committee, said he had no idea that investigations had taken place, and wants the National Audit Office involved. Jim Knight MP, employment minister, says there's no evidence of systematic fraud. But the piece has shown that significant amounts of public money are being wasted on fraud which is being covered up.
Not a good few days for A4e!
The DWP started its investigation into A4e's Hull office in May 2008, after discrepancies emerged in "confirmation of employment" forms submitted by the company. Two recruiters filled in forms meant for employers who agreed to take on workers. In some cases, employers' signatures were falsified. One of the recruiters had also entered into a fraudulent deal with a local temp agency. In January, the recruiter was sacked, while the other resigned. "It had the smell of a conspiracy," a source close to the company said. An A4e spokesman said it had found only 20 fraudulent claims. It remained unclear last night why the DWP investigation has been going for 13 months, when A4e was a bidding for major government contracts. A4e is expected to repay £15,000. Another recruitment company has been asked to repay £48,000 following a DWP inquiry."
http://www.youtube.com/watch?v=zvmpccpuI6o
http://www.youtube.com/watch?v=Q0FrwKi-h-Q
