Councils have been warned to learn the lessons handed to Dundee after the local authority was defrauded of £1 million by one of its own IT experts.
Mark Conway, who is currently serving a five year jail term, conned council coffers of £1.065million in an elaborate scheme over the course of a seven year period.
In a report on the crime, the Accounts Commission warns that robust IT and financing systems need to be put in place across Scotland.
The Convention of Scottish Local Authorities (COSLA), the association of all 32 Scottish councils, assured each authority already had in place “robust procedures” to mitigate fraud.
Dundee City Council was forced to hire an independent company to review its IT systems following Conway’s trial, at expense to the public purse.
Conway, who was rumbled in May 2016, admitted the theft and was forced to sell off his house and forfeit his pension as the council tried to recoup the losses which had accrued under their noses.
The crook blamed his actions on an addiction to online gambling.
Graham Sharp, chair of the Accounts Commission said: “Lessons must be learnt from this serious and prolonged act of fraud. Our role is to provide the assurance people expect that all councils have in place robust checks to ensure public money is properly spent and accounted for. This case provides clear lessons for every council in Scotland.
“Councils must have fundamental internal controls in place to ensure secure IT systems, and those responsible for using them, must be managed appropriately.
“Managers in all Scottish councils are responsible for ensuring these arrangements are in place.”
Dundee City Council said the council took action to rectify its systems after Conway’s crime was discovered.
While Douglas Lumsden, co-leader of Aberdeen City Council said: “Aberdeen City Council has earned praise for the strength of its financial controls and systems from external auditors. We have stringent measures in place, with a proactive approach to the monitoring and review of procedures in line with best practice.”
And a spokeswoman for Moray Council said: “Our ICT and finance teams work closely with all departments to implement robust and established procedures which ensure our financial management system is managed appropriately. Access to the system is controlled, and our expenditure is scrutinised both internally and externally so that any discrepancies which may occur are picked up and rectified swiftly.”
