MPs call for Royal Mint to overhaul security controls

Michael Harrison
Thursday 17 April 2003 00:00 BST
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The Royal Mint was severely criticised yesterday by MPs for lax financial and security controls, deepening losses and embarking on a "seriously flawed" expansion programme.

In a damning report, the Commons Public Accounts Select Committee also said the Treasury should consider removing the Royal Mint's immunity from prosecution for health and safety offences following the crushing to death of an employee in June 2001.

The MPs say the Royal Mint failed to learn the lessons of a banknote theft in the mid-1990s which led to the more serious theft in 2001 of £25,680 from an unguarded safe which was generally left open for the day. Although the Royal Mint subsequently installed a video camera in the area, no disciplinary action was taken against any members of staff. "The Royal Mint needs to overhaul its operating controls and physical security measures to prevent further recurrence," the MPs say.

Other criticisms in the report centre on the Royal Mint's "naive" strategy for producing blank euro coins. It expected to win 20 per cent of the contracts but secured only 5 per cent and ended up having to make 220 redundancies and write-off £12m.

Despite stating in July 2001 that losses had been arrested and reversed, operating losses increased to £6.5m in 2001-02. The organisation is currently being investigated by the Serious Fraud Office over allegations that it made "improper payments" for several years during the 1990s. Most of the recommendations contained in a report by the accountants Grant Thornton had now been implemented.

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