Committee publication · Correspondence · 20 April 2026

Letter from the Permanent Secretary of the Ministry of Defence to the Chair of the Public Accounts Committee relating to The MoD’s tackling of economic crime and misconduct, 20 March 2026

Inquiry: The MoD’s tackling of economic crime and misconduct

Summary

The Permanent Secretary of the Ministry of Defence responds to the Public Accounts Committee's questions from an oral evidence session on 5 March 2026 concerning fraud and economic crime. The letter clarifies that the widely-reported £211 billion figure of blocked invoices was driven by a single £210 billion typographical error, explains the Department's three-way invoice validation process, outlines planned Oracle Fusion Cloud analytics enhancements, and commits to publishing a refreshed Counter Fraud Strategy in September 2026 alongside a phased fraud risk estimate.

Key findings

The £211 billion blocked invoices figure cited in media reports was abnormally high due to one supplier typographical error of £210 billion, not systemic fraud
MoD uses Oracle Contracting, Purchasing and Finance system with three-way matching between invoice, purchase order, and goods receipt confirmation; rejected invoices are not paid
Oracle Fusion Cloud will introduce advanced fraud detection, AI-embedded analytics, and automated error reporting through a dedicated Risk Management application
Department is developing a granular fraud risk estimate expected to take approximately one year, with initial assessments of less complex categories by end of 2026, informed by NHS Counter Fraud Authority experience
Whistleblowers remain a key source for detecting fraud; refreshed Counter Fraud Strategy to be published September 2026

Tone

Factual

Topics

public-financefraud-preventionprocurementfinancial-systemseconomic-crime

Key actors

Jeremy Pocklington (Permanent Secretary, Ministry of Defence), Sir Geoffrey Clifton-Brown MP (Chair, Public Accounts Committee), Aneen Blackmore (Director General Finance, MoD), Jim Carter (Director General Commercial & Industry, MoD), Simon Dobinson (Acting Chief Constable, Ministry of Defence Police), NHS Counter Fraud Authority

Notable line

“No blocked invoice is paid unless all required controls are satisfied.”

Key Quotes

“… the value of blocked invoices was abnormally high in 2022/23 because of a single rejected invoice of £210 billion, caused by a typographical error by a supplier”
— Jeremy Pocklington · explaining the widely-reported figure of £211 billion blocked invoices

“These controls form an important part of the Department's framework for preventing error, the misuse of public funds, and economic crime.”
— Jeremy Pocklington · describing the three-way matching process and invoice validation controls

“The Fusion software suite includes automated (and human-in-the-loop) error and fraud detection reporting through a dedicated 'Risk Management' application.”
— Jeremy Pocklington · explaining planned enhancements through Oracle Fusion Cloud

“I would expect the work to run over about a year, with initial assessments of the less complex categories by the end of”
— Jeremy Pocklington · describing the timeline for developing a more accurate fraud risk estimate

“… whistleblowers continue to be a key source of information in detecting fraud”
— Jeremy Pocklington · noting the importance of whistleblower reports alongside technical controls

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Source · parliament.uk record ↗