Guernsey States financial controls reviewed after fraud

A review into the financial security of all Guernsey government departments will be carried out after £2.6m was fraudulently taken from the States.

The Treasury and Resources Department paid out the money to fraudsters posing as a major contractor.

The review will be carried out by the Public Accounts Committee.

Deputy Heidi Soulsby, its chairwoman, said the aim was to ensure all States financial systems were not vulnerable to another similar fraud.

She said: "The review will clearly identify defects in process and procedures and seek assurances on behalf of the public that the States is acting appropriately to safeguard public funds."

Deputy Soulsby said the public had questions and this would give them answers, but warned that "sensitivity and patience" was needed so the police investigation would not be jeopardised and any practical measures could be put right without delay.

An external reviewer will be appointed jointly by the committee and Policy Council, which has already promised to undertake an independent review into the fraud.