Melton Borough Council

Payment Agreement

Published Tuesday, 13th January 2015

Melton Borough Council reaches an agreement with Supplier over payment of outstanding invoices which were previously paid to a fraudulent bank account in September 2013.

In September 2013 the council was the victim of a well planned payment fraud which resulted in £205,000 being paid into a fraudulent bank account. This money was due to one of the council’s regular suppliers.

Since that time the Council and the supplier have cooperated fully with the Police in order to assist them with their inquiries and the investigation remains on-going. 

Since that time the genuine supplier and the council have been in talks regarding the outstanding amount for which the supplier remains unpaid. The Council is pleased to report that this matter has now been resolved and the Council has paid the supplier 80% of the amount due. The agreement reached allows for any funds recovered from the fraudsters following the conclusion of the Police enquiry to be retained by the Council. A provision for part of this loss was already made as part of the Council’s 2013/14 accounts and the remainder will be met from the current years budget.

The Leader of the Council Byron Rhodes states:

“I am pleased that this matter has now been resolved with one of the Council’s valued suppliers. I am obviously disappointed that both sides have suffered a loss as a result of this well planned and executed crime. The council will continue to remain in contact with the Police in order to support the investigation in any way it can as well as seeking to recover some of the loss should this be possible.”

For more information please contact:

Name: Dawn Garton

Melton Borough Council

Telephone: 01664 502502

Email: dgarton@melton.gov.uk