Primarolo to face Treasury committee
Paymaster general Dawn Primarolo will be quizzed this week by the Treasury select committee on the government's response to a highly critical report on alcohol duty fraud.
Appearing before the committee on Wednesday, Primarolo will face questions about the Roques report which investigated massive losses caused by so-called ‘diversion’ frauds.
According to the report, written by former Deloitte & Touche senior partner John Roques, Customs lost Pounds 884m through diversion frauds where goods intended for export were moved from bonded warehouses back into the UK market without duty being paid.
Roques was highly critical of Customs’ response to the frauds during the 1990s and the National Audit Office later said Customs failed to ‘get to grips with a major breakdown in their control systems which led to an unacceptable loss of revenue.’