Barking and Dagenham (Parliament News) – Four people have been arrested in Dagenham and Essex in a housing fraud investigation involving a company owned by Barking and Dagenham Council.
The investigation centres on alleged fraud involving BD Reside, a housing company operated by Barking and Dagenham Council that provides rental and market- and affordable-priced apartments for sale and shared ownership.
According to the council, neither the housing allocations department nor the distribution of council houses are involved in the alleged fraud.
Dominic Twomey, council leader, said:
“The fact we have openly publicised this matter as much as we can, and contacted the City of London Police for guidance and support, shows our commitment to being open and transparent when serious concerns are found.
We want this investigation to send a clear message that we simply won’t tolerate illegal activity.”
The council’s anti-fraud squad informed police and sought additional assistance after conducting an intelligence-driven investigation that resulted in the arrests.
Cllr Twomey said:
“Some of the comments I’ve seen from the public are calling for those involved to be named, which we obviously can’t do while the investigation is live.
I’m hopeful that we’ll get the right result and will be able to talk more about the details once the case has concluded.
We’re very grateful to the City of London Police for their strong partnership with the council and BD Reside throughout this process.
As the investigation continues, I’d urge anyone who might have even the smallest piece of information to come forward – it could make all the difference.”
How will this affect council housing policies?
Councils will probably want to strengthen their internal controls, fraud analysis and auditing procedures to prevent housing allocations abuses and financial mismanagement. This would enhance accountability and trust.
In the wake of any fraud, councils may decide to make changes to their housing allocations schemes to focus on more transparency, enhanced eligibility requirements and further restrictions on letting properties to only eligible applicants.
Policies may need to increase housing officers’ training on ethics and unlawful behaviour prevention training; building the culture of integrity may be relevant. In addition, councils may decide to increase their training efforts to inform and engage residents in monitoring fair housing allocations and reporting suspicious activity to mitigate future fraud.