IN a report that will be seen as savagly ironic by Thurrock council watchers, the financial collapse of the authority through its massively botched 'borrow to invest' is now impairing the work of its internal frauid investigation team - a department that actually makes a profit for the council!

A report to Thurrock's standards and audit committee next week shows the counter fraud team detected £4.62 of fraud for every £1 spent on the department, despite a reduction in staff numbers.

The service is responsible for the prevention, detection and deterrence of all instances of alleged economic crime affecting the authority including allegations of fraud, theft, corruption, bribery and money laundering as well as offences concerning social housing.

The specialist investigative service does not appear to have been tasked with looking at the massive internal mismanagement that has cost the council hundreds of millions of pounds. At the moment that probe is being led soley by the government - even though there have also been calls for a police investigation.

Recent work by the council team has proved its worth, having detected issues involving almost £240,000. Figures for quarter three of 2022/23 show the team recovered two council homes saving the council £47,000 and detected fraud worth £192,300.

More than 100 investigations are currently being carried out.

The report says: "The counter fraud function receives funding from the Housing Revenue Account to conduct housing investigations and this includes offences under the Protection of Social Housing Fraud Act, which has made it a criminal offence to sub-let or abandon your social housing property without notifying the local authority in question.

"When offences like this are identified, individuals are dealt with as per legislation and the priority is the return of social housing through recovery to the authorities housing stock. For every property that is recovered and returned to the housing stock from those that do not need, live in or qualify for them, £23,500 is, on average, saved by other council departments in various costs."

However, that good work is offset by a lack of funding at present - and that situation could be about to get worse. The council is undergoing a review by commissioners appointed by the Government to deal its current £469million operating defecit following a series of failed investments - some attributed to the council's links with 'dodgy dealers'.

The council is unable to spend money without permission from a spending panel. Despite its good work, this has meant the fraud team is unable to proceed with some of its plans.

The report adds: "Some areas of the proposed work can no longer be completed due to the resourcing review, however in those areas that can be completed, work is ongoing. It has been decided that no new work plan items will be added to replace those that have now been pushed into 2023/24 or are not able to be proceeded with."