Councils lose 1,000 blank cheques

Story from BBC NEWS:
Two councils are facing calls for an investigation after a box of 1,000 blank cheques were lost by staff.

The package of Aberdeen City Council cheques went missing in September after it was delivered to Aberdeenshire Council headquarters for printing.

The cheques were due to be used to pay back council tax refunds.

Council chiefs said the they were cancelled as soon as it was discovered that they had disappeared, and stressed there was no danger of fraud.

However, critics said the error raised concerns about security and called for an inquiry into what had happened.

Aberdeen City councillor James Hunter branded the incident "diabolical" and said there should be an investigation.

The box of cheques was delivered to Aberdeenshire Council's Woodhill House, but went astray before it reached the relevant department.

I think it's diabolical really that this has happened and someone will have to take responsibility for it James Hunter Aberdeen City councillor

The unsigned cheques bore the Aberdeen City Council logo and serial numbers and were due to be printed with payment details for council tax refunds.

A city council spokesman said: "We were informed by Aberdeenshire Council that a package of cheques was missing.

"We immediately arranged to have them voided. The cheques were not in a form that could be used, so there was no risk of fraud."

Aberdeenshire Council said it had reviewed security in the wake of the incident.

The matter was not reported to police but was dealt with internally between the two councils.

An Aberdeenshire Council spokesman said: "A parcel of cheques due to be printed on behalf of Aberdeen City Council was delivered to Woodhill House in September but went missing shortly after.

"When it became apparent the package couldn't be found, Aberdeen City Council was informed and we understand the cheques were immediately cancelled.

'No risk of fraud'

"We understand the cheques were not in a form that could be used, so there was no risk of fraud.

"Our internal procedures were reviewed to ensure that deliveries of cheques are always accepted by the appropriate member of staff."

Critics called for deeper investigation into how the blunder happened.

Mr Hunter said: "I think security will have to be improved.

"I think it's diabolical really that this has happened and someone will have to take responsibility for it.

"I think it's very worrying that something like this has happened and surely there should be a full inquiry into it."

Aberdeen City councillor Willie Young said he was worried about the implications of having blank cheques lost.

North East Labour MSP Richard Baker said: "It is concerning particularly when it's blank cheques as you want to be sure that these cheques cannot be used fraudulently.

"We have had reassurance from the council that they cannot be used fraudulently, but we need to be told exactly why they cannot be used."