Denbighshire Council Launches Fraud Investigation Following Whistleblower Report

Denbighshire County Council has launched an investigation into "concerns of potential fraud" according to a report by the authority's chief internal auditor, Bob Chowdhury. The findings will be presented to the council's governance and audit committee on January 21, revealing ongoing counter-fraud work at the local authority.

Background and Context

The current investigation follows a whistleblower's response and counter-response regarding alleged fraudulent activities at the council. This marks the second significant fraud-related investigation in less than a year, after a council worker was dismissed last April following an inquiry into "potential fraud and misappropriation of funds."

Key Figures and Entities

Bob Chowdhury, the council's chief internal auditor, has documented the authority's counter-fraud efforts in his latest report. While internal audit's primary responsibility is not to identify or investigate fraud—a duty that rests with management—Chowdhury notes that his department has undertaken all nine recent investigations after discussions with the corporate director for governance and business.

Legal and Financial Mechanisms

According to Chowdhury's report, the internal audit department has completed 15 reviews and conducted nine special investigations since September. The council has also implemented preventive measures, including the purchase of a fraud, corruption, and bribery e-learning module set to roll out to staff in April. The internal audit function ensures that any governance, risk management, or control weaknesses are addressed in accordance with financial regulations and the council's anti-fraud strategy.

Policy Response

The council's approach to handling fraud allegations reflects broader public sector frameworks for financial misconduct. By separating detection and investigation responsibilities between management and internal audit, the authority follows established governance protocols. The implementation of staff training modules indicates a preventive strategy alongside reactive investigations.

Sources

This report draws on the internal auditor's report prepared for Denbighshire County Council's governance and audit committee, scheduled for presentation on January 21.