February 02, 2006

Minister 'Misled' MPs over £15m Fraud

The Telegraph reports that Dawn Primarolo, the Paymaster General was accused this week of "seriously misleading" MPs over a huge organised fraud involving tax credits.

At least £15 million in false claims has been diverted into bank accounts by criminals using the stolen identities of thousands of benefit office workers and rail staff.

Shortly after the discovery, the system of application via the internet was closed down and a criminal investigation was launched.

But the Paymaster General, was attacked by the Liberal Democrats after telling the Commons Treasury sub-committee yesterday that she did not know about the fraud until the end of November.