Business charge card update

Report: 20
Date: 14 June 2010
By: Directorate of Professional Standards Specialist Investigations on behalf of the Commissioner

Summary

This report is to update members of progress made in reviewing and investigating the potential misuse of MPS Amex charge cards. It is based on information from the MPA Internal Audit, MPS Exchequer Services and MPS Directorate of Professional Standards.

This review was first reported to full Authority on 22 November 2007 and to Corporate Governance Committee on 14 March 2008, 12 June 2008, 11 September 2008, 8 December 2008, 23 March 2009, 15 June 2009, 14 September 2009, 10 December 2009 and 22 March 2010

A. Recommendation

That

1. members note the progress made by the Directorate of Professional Standards in reviewing and investigating the potential misuse of Amex charge cards within the MPS (including any non-MPS holders of MPS cards); and
2. note the estimate of the likely time to complete the reviews and investigations by the Directorate of Professional Standards and resources required to do this

B. Supporting information

Directorate of Professional Standards - Statistical Overview

1. All of the 195 category A files forwarded by MPA Audit have been reviewed by a DPS caseworker and an initial disposal sanction reached. In total 58 category A cases warranted a sanction being imposed or a formal investigation instigated.

2. The remaining 137 cases have been considered appropriate to be dealt with by either a guidance letter, or no further action taken. The cases of no further action are in the main when the cardholder would have received a letter of guidance, but they have since left the service.

3. The following is a breakdown of the category A cases investigated by the DPS.

• Nine officers have been charged with criminal offences.
• Three members of the public have been charged with criminal offences linked to an investigation involving three of the officers shown above. This case is due to be heard in October 2010.
• Two of the officers charged have appeared at court and pleaded guilty to ‘Misconduct in a public office’. One with £82,000 of personal spend received a 10 month custodial sentence. One for £10,000 personal spend received 8 months suspended sentence, suspended for two years.
• One of the officers charged pleaded ‘not guilty’ to misconduct in a public office in relation to £12,000 of personal spend. He was convicted of the offence but subsequently appealed. His appeal was successful however the appeal court directed that the officer be re-tried. This trial is due to be heard in January 2011. (This officer was dismissed prior to the first trial.)
• The case against one officer who had been charged has been discontinued. This case is now with the misconduct unit for consideration.
• There are four separate criminal trials waiting to be heard in relation to Amex related investigations.
• One member of police staff was identified as using his Barclaycard for an excessive amount of personal spend. He has subsequently resigned from the service, receiving a criminal caution for theft.
• Three cases relating to officers are currently with the CPS.
• Three officers have appeared before misconduct hearings. One officer received a formal reprimand. Two officers received the sanction of deducted five days pay.
• Two officers’ await full misconduct proceedings and three further cases are under review by the misconduct unit to ascertain the most appropriate level of sanction.
• Twenty two officers have received written warnings.
• One officer has received words of advice.
• In addition to the above figures, three officers and one member of staff have received regulation 9 notices informing them they are under investigation. These cases have not yet reached a disposal sanction.
• Eleven officer’s cases will receive training and guidance letters or no further action. This is due to a formal investigation ascertaining no substantive misconduct.

4. There are therefore seven formal investigations that are still to be concluded to the decision point of, criminal charge being made, a misconduct sanction being appropriate or no further action being required.

5. The timetable to complete the current ongoing investigations will be dependant on the judicial and discipline process. There are currently four fixed dates for criminal trials; two trials are scheduled for October and November 2010, while two trials are scheduled during January 2011.

6. The DPS currently supplies the staff and resources to complete this investigation and have the capacity to deal through to conclusion.

Organisational Learning

7. This review and investigation has identified significant organisational learning. Due to the recommendations made by the DPS, MPA Internal Audit and MPS Exchequer Services, significant improvement of financial control has been introduced. These are outlined below.

8. A New corporate card was introduced in June 2008, in the form of Barclaycard. This has introduced new policies as a direct result of the Amex investigation, these have included:

• An initial review of all cardholders’ necessity to posses a charge card, followed by further annual reviews.
• A card limit annual spend imposed on cardholders, with 81% of cardholders having the minimum limit of £5,000.
• A system whereby the responsibility to ensure reconciliation has moved away from a central point of Exchequer Services. Each OCU finance and resource unit now has a responsibility to pursue reconciliation, with regular review meetings held between Business Finance Managers and Exchequer Services.
• A reduction from 90 days to 30 days to reconcile.

9. A new overseas travel allowance policy. This policy has removed the travel allowance element that includes hotel accommodation. All hotel accommodation must now be claimed through production of a receipt.

10. A new corporate hospitality policy that outlines clear parameters for spend.

11. MPS corporate cards are no longer issued to officers who are performing a role outside of the MPS, such as working for an ACPO Unit. In addition all non-MPS officers seconded into the MPS must receive sponsorship from a Superintendent, reviewed annually, to receive a card.

C. Race and equality impact

The equality and diversity implications of this investigation continue to be monitored by the Director of Resources and the Directorate of Professional Standards. There are not considered to be any adverse implications.

D. Financial implications

All costs for this review and investigation are currently being met from existing budgets. This has required a significant redirection of resources within Exchequer Services, DPS and the MPA Internal Audit Forensic Branch. Business Groups have also had to dedicate resources to support this process. Resources will continue to be allocated until the reconciliation and related investigations are completed.

It is standard policy to recover any money owed to the Authority for any reason. Action will be taken to ensure that all funds are recouped where appropriate subject to legal advice.

E. Legal implications

The investigation is being conducted in accordance with the requirements of the Police Reform Act 2002 as an IPCC managed investigation. Cases for possible criminal prosecution are referred for decision to the CPS and for possible disciplinary action to DPS, or HR in respect of staff.

Where repayment of sums remains outstanding and it is not possible to deduct the monies from wages, files may be referred to DLS. It should be noted that the time limit to bring civil actions for debt is 6 years from when the debt arose, i.e. from when the unauthorised payment in question was made.

F. Background papers

• None

G. Contact details

Report author: Mark Simmons, Commander Directorate of Professional Standards.

For information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

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