Audit Commission warns of financial fraud

The chance of financial fraud is increasing among the privatised areas in the public service sector, says the Audit Commission in its annual report. The commission blames blurring of accountability, leading to “increased risks of waste and more opportunities for dishonesty”. The incidence of fraud in local government appears low but there are “some signs that it could be on the increase,” says the commission. The commission calls for laws requiring independent auditing of government-related businesses.