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POL00123191
Raising cases for investigation
February 2014
Purpose
1.
The resultant cultural shift as a result of the current Branch Network
Improvement Programme, together with a reduction in resource capability will
clearly have an impact on security activities. There is therefore a need to look
at more effective ways to provide the expected level of service to the
business. The purpose of this report to apply some objectively around raising
cases to ensure that our processes are proportionate, fair and meet business
needs.
Background
2. The investigation landscape has significantly changed since publication of
the interim Second Sight review in August. The Audit team have placed a
£20k threshold on anomalies for potential audit. Additionally Contract
advisors will not now precautionary suspend as a matter of course, without
first considering whether or not the subject remaining in the Post Office:
e Is likely to hinder the investigation
« Whether or not the reason for the loss has been identified
e Whether keeping the subject in post is unlikely to risk further loss
There appears to have been a significant shift in process where unlike
previously precautionary suspension is now seemingly used as a last resort.
This proposal has been accepted by the business.
Where an agent remains in post, any criminal prosecution is unlikely to pass
the successful prosecution test rendering criminal investigation unviable.
Clearly, a cessation of low level audits and revised processes adopted by
Contract Advisors will have a significant impact on the numbers of cases
raised for investigation.
Proposal
5. Cases will only be raised for criminal investigation once all alternative
avenues which may culminate in a successful outcome have been explored
and dismissed. Consideration must be given to crime reduction or disruption
activities such as those previously undertaken as fraud risk programmes.
Civil recovery can also be explored. In any event the decided course of
action needs to be proportionate, justified and necessary in terms of meeting
business needs.
Cases raised for investigations will be limited to those likely to seriously
damage the brand or reputation of the Post Office; this may be a POCA case
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involving multiple victims affecting the elderly and vulnerable. Other cases
will be considered where there is a clear and obvious business need to
conduct a criminal investigation; Offending which results in significant loss or
harm to POL or the community. Likewise a Post Office business client who
has been subjected to significant loss.
The mechanism
7. On deciding the appropriate course of action consideration must to given to
the following:
e The seriousness of any offence and extent of harm
¢ Duration of the offence
e The victim; vulnerable, multiple or client impacting
e Any voluntary disclosure or confession made by the person
concerned
e The age, physical and mental condition of the person concerned
e Previous convictions or evidence of offending by the person
concerned
e Any breach of trust
¢ Other social factors
e Likely expectations of key stakeholders
.
Weighting Matrix
Any likely delays in an enforcement decision being reached?
Consider
Circumstances
Low
Med
High 3
Extreme: 4
Value
If the losses incurred significantly
high
<£5k: Low 1
Between £5k and £10k: Medium 2
£10k <-> £15k: High 3
Over £15k: Extreme 4
Evidence
Documentary evidence likely to
support a successful prosecution
Witnesses
Eyewitness accounts, availability of
CCTV to support allegation: High
Yes, Low: No
Subject
Disclosures
Admits offence:3/4
Admits offence prepared to return
money taken: 2
Denies Offence: 1
Subject
Physical or mental condition
Medical Evidence supporting
victims condition: 1 [dependent]
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Indication from subject: 2
No indication:3
Subject Previous —_ offending or non-
compliance by the subject
Subject Intelligence received concerning
subject's activities; substantiated by
recognised source; ie client partner
will be High. Unsubstantiated or
unknown unreliable source is low.
Subject Level of training, expertise, length
of time in the business. Length of
service scores high.
Victim Vulnerable, elderly, multiple victims
Business Seriously damage client
impact relationship
Media Will there be significant media
impact interest that may damage the
reputation of the Post Office
Stakehold I Expectations in internal
er stakeholders in pursuing criminal
investigation
Total Score: 19
Scoring (decision making)
8. Cases scoring higher than 15? will be raised for investigation. *(There could
always be instances whereby the severity of the offence may require an
immediate investigation being raised (i.e. business flag case, extreme high
loss). However this would still not inhibit the latter decision on whether to
proceed with a criminal prosecution thereafter).
9. The decision to raise a case currently sits with the team leader. For the
benefit of consistency and governance, consideration should be given to
raising the line of responsibility to Senior Programme Manager, with input
from the team leader/security manager.
10.Where the decision is taken to raise a case, the prosecution test must be
considered at the earliest possible stage as follows:
e Evidence of guilt sufficient to give a realistic prospect of success in
criminal proceedings,
e A prosecution must be deemed in the public interest.
Case not raised
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11. The matter will be forwarded for consideration by line management, Contracts
Managers or the Civil Recoveries teams with any necessary support from
Security.
Informal Action [Contractual]
12.This will usually take the form of letters or reports sent to the person
concerned in the case of a minor offence but can also include verbal
warnings. Informal action should be acted upon by the individual or business
and in the event they fail to do so and there is new evidence of dishonesty,
consideration should be given to conducting a criminal investigation.
13.Examples of when informal action might be appropriate include
circumstances where:
+ An early admission of guilt (in the case of a minor offence) is made.
+ The offence is not deemed serious enough to warrant criminal
investigation.
+ Action taken by the offender to repay or make amends for criminal
act.
+ The past history of the individual or business suggests that informal
action will deter future offending.
Formal Action [Contractual]
14.Where criminal proceedings are not considered appropriate but the criteria is
deemed greater than the informal approach, the Contracts Manager will
decide on any enforcement actions required taking into consideration
+ The seriousness of any offence and extent of harm
+ Duration of the offence
* The age, physical and mental condition of the person concerned
+ Any voluntary disclosure or confession made by the person
concerned
+ Previous convictions or evidence of offending
+ Any breach of trust
+ Other social factors
+ Any delays in a criminal enforcement decision being reached
Civil Proceedings
15. This will be considered where the seriousness of the offence or the attitude of
the offender renders formal action inappropriate. Civil proceedings can be
used to vary/ terminate a contract, recover monies stolen from POL or as
financial compensation for other wrongdoing.
Disciplinary proceedings
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16.There will be circumstances where the offence not suitable for criminal
investigation occurs within the Crown or other Post Office support function
and the person concerned is an employee of the Post Office. In which case, a
conduct investigation under the POL discipline code will be undertaken by
line management. Any necessary assistance to support the conduct
investigation will be provided.
Conclusion
17.Research already conducted suggests that cases raised will reduce by circa
50%. Although there are likely to be some concerns that reduced
investigations may lead to an increase in losses and the potential for wider
undiscovered offending, this could be mitigated by robust crime prevention
initiatives. This would include a number of fraud risk programmes being
undertaken by the security team and delivered in conjunction with key
stakeholders, which will provide mitigation for a decrease in the level of
frauds being committed at an earlier stage and therefore reduce the current
level and value of losses.
Submitted for consideration
Andy Hayward
Post Office Ltd. Security team.