TranslateWhat are Fraud, Bribery, and Corruption?
What is Fraud?
Fraud is a criminal offence, and in simple terms can be described as theft by deception. It generally means deception carried out for personal gain for money or other property; it may also involve the abuse of a position of trust. Fraud has been identified as the crime that people are most likely to experience in the UK, and no individual or organisation is immune from that risk. ‘NHS fraud’ means any fraud where the NHS is the victim.
Fraud is a deliberate act - for an offence to have occurred, the person must have acted dishonestly with the intention of making a gain for themselves or for someone else, or with the intention of causing, or risk causing, a loss to another. The gain or loss does not have to succeed, so long as the intent is there.
It is estimated that fraud costs the NHS around £1.21 billion every year, enough to pay for approximately 56,000 Junior Doctors or 40,000 Staff Nurses or 5,000 ambulances.
The vast majority of people who use, work in or interact with the NHS are honest; however, a small minority commit fraud against the NHS and they range from all walks of life - patients, the general public, staff, suppliers, and organised crime groups.
Fraud Act 2006 Offences
There are several specific offences under the Fraud Act 2006; however, there are three primary ways in which it can be committed that are likely to be investigated by the AFS. The offence of fraud can be committed in following three primary ways:
- Section 2 – Fraud by false representation – lying about something using any means.
NHS examples could be: false claims for travel/ subsistence expenses; working elsewhere while off sick; altering a genuine, or producing a fake, fit-note to support sickness absence; lying on a job application; providing false ID, references, or qualifications at recruitment; a supplier submitting an inflated invoice for payment; scam emails which appear to be genuine and ask for your ESR login details or other personal information, or which ask Finance to change a genuine supplier’s bank account details.
- Section 3 – Fraud by failing to disclose information – not saying/declaring something when you have a legal duty to do so.
NHS examples could be: failing to disclose a conviction, disqualification or commercial interest which could have an impact on your NHS role; failing to disclose previous employment on a job application.
- Section 4 – Fraud by abuse of a position of trust – abusing a position where there is an expectaion to safeguard (or not act against) the financial interests of another person or organisation.
NHS examples could be: exploiting a position of trust, such as a carer abusing patient monies; or an employee influencing a procurement decision to award work to a friend or family member
Potential Consequences
- Disciplinary – e.g. suspension from work during disciplinary process; written warning; dismissal.
- Prosecution – e.g. up to 10 years in prison &/or unlimited fine; police caution; community order.
- Professional Body action (GMC, NMC etc.) – e.g. warning; restriction; suspension; struck off.
- Civil recovery of money or other property gained as a result of fraud.
- Loss of NHS Pension.
What is Bribery?
Bribery is a criminal offence. Under the Bribery Act 2010, a bribe is a financial or other advantage intended to induce or reward the ‘improper performance’ of a person’s official public functions or work activities. Generally, this means offering or receiving something of value to influence a transaction that someone shouldn’t do. Offences include offering, promising, giving, requesting, accepting, or agreeing to accept a bribe. The Bribery Act applies to (and can be triggered by) everyone “associated” with this Trust who performs services for us, or on our behalf, or who provides us with goods. This includes those who work for and with us, such as employees, agents, subsidiaries, contractors and suppliers. The Bribery Act includes a corporate offence of failure to prevent bribery unless the organisation had adequate procedures in place to prevent bribery.
Penalties for the criminal offence of bribery are up to 10 years in prison &/or unlimited fine.
The first person convicted under the Bribery Act was Munir Patel. Patel used his privileged position as an administration clerk at a London Magistrates’ Court to manipulate the official process to help offenders avoid prosecution. Patel sought out people and suggested to them that for payment he could help them out of their difficulties. He admitted to one count of bribery by taking £500 to avoid putting details of a traffic summons on a court database; but the prosecution believe he earned at least £20,000 by helping 53 offenders. Patel was jailed for 6 years: 3 for bribery, 6 for misconduct in a public office, to run concurrently (reduced to 4 years later by Court of Appeal).
What is Corruption?
Corruption is generally considered to be an ‘umbrella’ term covering such various activities as bribery, corrupt preferential treatment, kickbacks, cronyism, theft or embezzlement. Under the Bribery Act 2010, however, bribery is now a series of specific offences.
