Terror compo scheme swindled of €7.3m

The British government has been swindled out of £5m (€7.3m) from a terrorist compensation scheme in Northern Ireland, it emerged today.

A new British parliamentary report revealed huge levels of fraudulent claims despite the ongoing normalisation of security arrangements.

The Northern Ireland Affairs Committee’s probe also urged the authorities to examine legal flaws preventing some child sex abuse victims claiming cash.

The body disclosed the startling levels of public money going missing following its examination of the Compensation Agency in Northern Ireland.

Committee chairman Michael Mates said: “We were extremely concerned to find there has been significant abuse of the Terrorism Act compensation scheme since its introduction in 2001.

“The number of claims increased significantly at a time when we would have expected a reduction because of a greatly reduced operational deployment of the (British) army.

“We believe this abuse may have resulted in the loss of more than £5m from public funds.”

The committee studied the role of the agency, set up in 1992, in aiding victims who suffer serious injuries and financial loss due to violent crime.

It also looked at its ability to hold public confidence and to provide compensation for those who suffer because of terrorism.

Although blatant abuse of the system designed to pay for damage to property caused by the security forces was uncovered over a two- year period, the agency’s success in cutting the number of claims was praised.

Mr Mates said: “While new, robust claims procedures and improved liaison with the army have resulted in a dramatic reduction in claims from an average of 633 to 67 per month, the Government must continue to review compensation schemes to ensure that any irregularities are detected and resolved at an early stage.”

The committee chairman accepted the new criminal injuries scheme introduced in 2002 had posed considerable challenges for the compensation body.

A backlog of cases under the old system is also being overcome, he noted.

The committee added that the improved security situation in Northern Ireland and the absence of town centre bombings will have a major impact on the agency’s future work.

But there were urgent demands for changes to the law surrounding youngsters subjected to sex assaults.

Mr Mates said: “We were also deeply disturbed that flaws in the law have resulted in some child sexual abuse victims being unintentionally debarred from claiming compensation.

“Our report urges the minister to take steps to remove this barrier as a matter of urgency.”