Scammers ‘scammed £5 billion from Covid loan scheme and £17 billion may never be repaid’

FRAUSTERS scammed £5 billion from the Covid loan scheme and £17 billion may never be paid back, a report says.

Ministers are accused of overseeing “major fraud and errors” and turning a blind eye to smaller criminals in the hope of more recovery from organized crime gangs.

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The National Audit Office said £28billlion had been discharged before anti-fraud checks ensured that firms did not apply for more than one loan.

Measures were then put in place, but it was too late to prevent lies and instead focus on detection.

One in four out of all UK companies have applied for the program and a £47 billion loan was eventually moved.

But around £17 billion in cash will not be repaid, Ministry of Business calculation – and up to £5 billion of applications are cheat.

President of Public Accounts, Meg Hillier MP, said the anti-fraud measures were “too little, too late”.

She added: “The government is focusing on recovering money from organized crime, but many smaller scale cheaters will slide through its fingers. “

NAO boss Gareth Davies said: “The government needs to improve the identification, quantification and recovery of fraudulent loans.”

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