Guernsey States conned out of £2.6 million
Guernsey States have been a victim of fraud, losing £2.6 million.
Treasury and Resources Minister, Gavin St Pier announced in the States this morning that on July 10th a payment that was supposed to go to Lagan Construction was in fact paid to fraudsters.
Guernsey Police Commercial Fraud Department have now arrested someone in the UK.
The fraud department have also recovered a small percentage of the funds. The exact amount recovered has not yet been confirmed.
A full investigation is ongoing and the fraud department are being assisted by their Guernsey Border Agency colleagues.
Lagan Construction was due the money for their work on the airport runway refurbishment.
The mistake was made when an employee in the department paid the money into the wrong account after receiving a fraudulent letter that 'appeared' to be from Lagan Construction, saying that they had changed their account details.
Members of the Assembly are angry and say there are many questions to be answered.
The minister said: "Of course, we have internal controls in place. Clearly these were inadequate in preventing this particular fraud. These internal controls were immediately changed to prevent it happening again."
"The theft of £2.6m of taxpayers' money is disturbing. It would be bad enough in the best of times; but it is even less bearable in the current fiscal situation."