Building fraud racket smashed

A multi-million pound fraud ring centred on Northern Ireland's construction industry has been smashed following a major security operation.

Four people were arrested during searches at a dozen premises in Belfast, Dungiven, Rostrevor and Downpatrick on Tuesday.

A large quantity of documents and computer records were seized.

This should serve as a strong deterrent to those contemplating this type of criminality

Jane Kennedy
Security minister

Co-ordinated searches were also carried out by by police and Inland Revenue officials in Scotland and Wales.

The fraud is believed to be masterminded in Northern Ireland and involves the criminal misuse of construction industry tax certificates.

Up to 20 Northern Ireland companies are under investigation in a fraud worth £10m to the Exchequer.

The police say it often includes claiming that sub-contractors have carried out work when those companies do not even exist.

'Co-ordinated strike'

The operation was praised for its professionalism by Security Minister Jane Kennedy, who is the chair of Northern Ireland's Organised Crime Task Force.

"The continued professionalism and dedication of all agencies has resulted in this co-ordinated strike against organised criminals in Northern Ireland," she said.

"Today's operation successfully targeted construction industry-based fraud, which is estimated to cost the Northern Ireland economy alone £10m, involving the criminal misuse of industry tax certificates.

"This should serve as a strong deterrent to those contemplating this type of criminality."

The raids were carried out following intelligence gathered by the Organised Crime Task Force, which includes police, Customs and the Northern Ireland Office.

PSNI Assistant Chief Constable Alan McQuillan said the operation proved fraud within the construction industry could be detected.

"This sends out a very clear message to the fraudulent contractors within the industry that their turn may be next.

"This sends out a message this fraud is traceable. We are working with the revenue in this and if other cases come to our notice, we will act on those as well," he said.

Threat

Meanwhile, a new report says fraud by workers and bosses is costing business in Northern Ireland millions.

It is said to be a greater threat to firms than any other economic issue.

Over the past two years, almost 40% of big business fell victim to economic crime, most of it inside jobs.

The author of the report, Paul Kinny of accountants Pricewaterhouse Coopers, said the type of fraud was wide-ranging.

"The types of crime that we surveyed are crimes ranging from embezzlement to cyber crime," he said.

"They also include breach of trust, for example misappropriation of assets or financial misrepresentation by management within a company, corruption, extortion and indeed money laundering, which seems to be flavour of the month at the moment."