According to the law firm Pincent Masons more than a third of UK company directors disqualified in April and May 2022 had abused the Government’s coronavirus loan or job support schemes.
37 directors were banned by the Insolvency Service for fraudulent claims in the two-month period and 140 had been banned for abuse of Covid schemes in the year to March.
Now the Chartered Institute of Internal Auditors is warning that ongoing tough trading conditions are creating the “ideal environment for fraudulent activity”.
And Financial Reporting Council (FRC) chief executive Sir Jon Thompson has warned of the “devastating impact fraud can have, including bringing entire companies to their knees” and called on directors to review and strengthen their internal controls to prevent financial losses.
During the Pandemic we published a Board Briefing to help directors to understand their duties and liabilities and at the time we made the point that it applied whatever the current situation.
It is worth having another read: