Stay up to date with notifications from The IndependentNotifications can be managed in browser preferences.Jump to contentThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged inAllNewsSportCultureLifestyleThe Ministry of Defence (MoD) is failing to adequately tackle what an influential parliamentary committee has branded the ‘apparent normalisation of fraud’ within its operations, with an estimated £1.5 billion lost annually (UK MOD Crown copyright)A scathing report by the Commons Public Accounts Committee (PAC) criticises the Ministry of Defence (MoD) for failing to tackle the “apparent normalisation of fraud” within its operations. The report estimates the MoD loses £1.5 billion annually to fraud, but the PAC deems this figure unreliable, suggesting the department lacks a credible understanding of its potential losses. The MoD recovers only 48p for every £1 spent on combating fraud and economic crime, significantly below the government's target of £3 for every £1 recovered. The PAC highlighted defence procurement as highly susceptible to fraud, noting little evidence that the MoD's management deters or penalises dishonest contractor behaviour, with £400 million in invalid contract payments halted in 2024/25. An MoD spokesperson stated the figures primarily relate to a previous government, claiming they are “turning that around” with improved recovery rates and new reforms, aiming to meet the £3 return target by 2028. In fullMinistry of Defence accused of failing to tackle ‘normalisation of fraud’ after £1.5bn annual lossThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in
Military spending fraud becoming ‘normalised’, scathing report warns
Stay up to date with notifications from The IndependentNotifications can be managed in browser preferences.Jump to contentThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged inAllNewsSportCultureLifestyleThe Ministry of Defence (MoD) is failing to adequately tackle what an influential parliamentary committee has branded the ‘apparent normalisation of fraud’ within its operations, with an estimated £1.5 billion lost annually (UK MOD Crown copyright)A scathing report by the Commons Public Accounts Committee (PAC) criticises the Ministry of Defence (MoD) for failing to tackle the “apparent normalisation of fraud” within its operations. The report estimates the MoD loses £1.5 billion annually to fraud, but the PAC deems this figure unreliable, suggesting the department lacks a credible understanding of its potential losses. The MoD recovers only 48p for every £1 spent on combating fraud and economic crime, significantly below the government's target of £3 for every £1 recovered. The PAC highlighted defence procurement as highly susceptible to fraud, noting little evidence that the MoD's management deters or penalises dishonest contractor behaviour, with £400 million in invalid contract payments halted in 2024/25. An MoD spokesperson stated the figures primarily relate to a previous government, claiming they are “turning that around” with improved recovery rates and new reforms, aiming to meet the £3 return target by 2028. In fullMinistry of Defence accused of failing to tackle ‘normalisation of fraud’ after £1.5bn annual lossThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in
UK MoD loses £1.5bn to fraud annually, recovering just 48p per £1 spent — well below the £3 government target, with £400m in invalid payments blocked in 2024/25. For defence-adjacent vendors, expect tightening governance and procurement compliance scrutiny.
