[UK] Former Conservative officials referred to HMRC for alleged furlough fraud

In the UK, former Conservative Party officials have been referred to HM Revenue and Customs over an alleged furlough fraud, Mirror reports.

A whistleblower told the Mirror that about £50,000 was paid to three staff at Gloucestershire Conservatives who had been placed on the Government’s Coronavirus Job Retention Scheme (CJRS) from March to October 2020.

According to an insider, workers at the office - which also houses the Tories’ South West headquarters - were asked to carry out work despite being full-time furloughed.

They were reportedly asked to update accounts, design leaflets, organise video calls, “communicate with party members and answer queries”, “draft and send out mass emails” and “arrange bank signatories”, the insider claims.

A source claimed members of staff were paid up to the maximum of £2,500 per month permitted under the scheme for about six months.

Kevin Ronaldson - chairman of the Gloucestershire Conservatives at the time and Andrew Lennard who was the treasurer - were reported to HMRC’s Fraud Prevention Department for allegedly instructing staff to undertake political duties during the pandemic.

Rules for the CJRS advised organisations “fully furlough(ed) employees – they cannot undertake any work for you while furloughed full time”.

The guidance also said, “During hours which you record your employee as being on furlough, you cannot ask them to do any work for you that: makes money for your organisation or any organisation linked or associated with your organisation; provides services for your organisation or any organisation linked or associated with your organisation.”

An email appearing to be from Mr Lennard was seen by the Mirror. It includes a comment saying, “It is a little tricky at the moment because almost all staff have been furloughed and are not supposed to be working.

“Whilst they are eager to help it would be more than embarrassing if an audit showed that they were working and so breaking the Governments (sic) rules.”

According to Mirror reporting, the allegations were first reported to HMRC on April 6 and formally in writing on June 22.

A Conservative source said, “If these allegations are proven, this would make the unholy trinity of lockdown-booze-ups, dodgy PPE contracts and now furlough fraud under Boris Johnson’s premiership.”

It is unclear whether Mr Ronaldson and Mr Lennard have been made aware of the complaint to HMRC.

It is not known whether those who are the subject of the complaint to HMRC have been made aware of it.

Mr Lennard denied the claims when approached by the Mirror about the allegations earlier this month.

Mr Lennard said, “I don’t know anything about it all.

“This is all news to me.

“I have got no comment at all. I think - I certainly know what we did and there was no issues at all as far as I am concerned whatsoever.

“I was very keen to follow the rules all the way through and we did.

“I don’t think I need to make any further comment at all because this is all ridiculous as far as I am concerned and that’s the end of the conversation.”

Mr Ronaldson said, “I have no idea what you’re talking about” before ending the call.

A Conservative Party spokesperson said, “Associations employ staff separately of CCHQ (Conservative Campaign Headquarters) and CCHQ has no involvement in those decisions.

“CCHQ did not use the furlough scheme at any point.”

A spokesperson for HMRC - which neither confirms nor denies ongoing investigations - said, “We designed anti-fraud measures into the Covid support schemes from the beginning, and we are taking tough action to tackle fraudulent and criminal behaviour.

“We have blocked tens of millions of pounds of claims being paid out in the first place and we are using the full range of our powers to recover incorrectly paid claims.

“We currently have a number of criminal investigations ongoing, we have opened over 40,000 civil inquiries, and have already made 35 arrests for suspected help scheme fraud.

“Anyone who believes an employer has abused the CJRS should search ‘Report Fraud HMRC’ on gov.uk and complete our online form.”

Source: Mirror

(Link and quotes via original reporting)

In the UK, former Conservative Party officials have been referred to HM Revenue and Customs over an alleged furlough fraud, Mirror reports.

A whistleblower told the Mirror that about £50,000 was paid to three staff at Gloucestershire Conservatives who had been placed on the Government’s Coronavirus Job Retention Scheme (CJRS) from March to October 2020.

According to an insider, workers at the office - which also houses the Tories’ South West headquarters - were asked to carry out work despite being full-time furloughed.

They were reportedly asked to update accounts, design leaflets, organise video calls, “communicate with party members and answer queries”, “draft and send out mass emails” and “arrange bank signatories”, the insider claims.

A source claimed members of staff were paid up to the maximum of £2,500 per month permitted under the scheme for about six months.

Kevin Ronaldson - chairman of the Gloucestershire Conservatives at the time and Andrew Lennard who was the treasurer - were reported to HMRC’s Fraud Prevention Department for allegedly instructing staff to undertake political duties during the pandemic.

Rules for the CJRS advised organisations “fully furlough(ed) employees – they cannot undertake any work for you while furloughed full time”.

The guidance also said, “During hours which you record your employee as being on furlough, you cannot ask them to do any work for you that: makes money for your organisation or any organisation linked or associated with your organisation; provides services for your organisation or any organisation linked or associated with your organisation.”

An email appearing to be from Mr Lennard was seen by the Mirror. It includes a comment saying, “It is a little tricky at the moment because almost all staff have been furloughed and are not supposed to be working.

“Whilst they are eager to help it would be more than embarrassing if an audit showed that they were working and so breaking the Governments (sic) rules.”

According to Mirror reporting, the allegations were first reported to HMRC on April 6 and formally in writing on June 22.

A Conservative source said, “If these allegations are proven, this would make the unholy trinity of lockdown-booze-ups, dodgy PPE contracts and now furlough fraud under Boris Johnson’s premiership.”

It is unclear whether Mr Ronaldson and Mr Lennard have been made aware of the complaint to HMRC.

It is not known whether those who are the subject of the complaint to HMRC have been made aware of it.

Mr Lennard denied the claims when approached by the Mirror about the allegations earlier this month.

Mr Lennard said, “I don’t know anything about it all.

“This is all news to me.

“I have got no comment at all. I think - I certainly know what we did and there was no issues at all as far as I am concerned whatsoever.

“I was very keen to follow the rules all the way through and we did.

“I don’t think I need to make any further comment at all because this is all ridiculous as far as I am concerned and that’s the end of the conversation.”

Mr Ronaldson said, “I have no idea what you’re talking about” before ending the call.

A Conservative Party spokesperson said, “Associations employ staff separately of CCHQ (Conservative Campaign Headquarters) and CCHQ has no involvement in those decisions.

“CCHQ did not use the furlough scheme at any point.”

A spokesperson for HMRC - which neither confirms nor denies ongoing investigations - said, “We designed anti-fraud measures into the Covid support schemes from the beginning, and we are taking tough action to tackle fraudulent and criminal behaviour.

“We have blocked tens of millions of pounds of claims being paid out in the first place and we are using the full range of our powers to recover incorrectly paid claims.

“We currently have a number of criminal investigations ongoing, we have opened over 40,000 civil inquiries, and have already made 35 arrests for suspected help scheme fraud.

“Anyone who believes an employer has abused the CJRS should search ‘Report Fraud HMRC’ on gov.uk and complete our online form.”

Source: Mirror

(Link and quotes via original reporting)