Fraud prevention policy updated

The Dunedin City Council is to adopt a new fraud prevention policy.

The policy, drafted by the council's audit and risk committee, will be considered by the council for adoption this afternoon.

A report from the council's chief financial officer, Grant McKenzie, which accompanies the draft policy, says it updates the council's fraud and investigation policy adopted in 2007.

The council this year uncovered an alleged $1.5 million fraud in the council's vehicle department, Citifleet, that has so far resulted in the resignation of three senior managers.

Mr McKenzie said the updated policy made it clearer for staff as to what to do if they suspected or discovered fraudulent activity.

The new policy specifically details both managers' and employees' responsibilities for preventing and detecting fraud and outlines how staff can report suspected fraud, including providing an independent person to whom people can report.

Definitions of fraud clarified or added in new DCC policy include:

• Unauthorised use of facilities, vehicles or equipment for personal gain.
• Obtaining funds or any other benefit through misleading claims, representations or by false pretences.
• Inappropriate claims for personal expenses.
• Use of the DCC's purchase card for personal gain.
• Inappropriate payments to third parties.
• Supporting others in, or in any way being party to, fraud or not reporting fraud.

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