'Unacceptable behaviour' and 'neglectful management' fuelling Fraud Office failures

The effectiveness of the Serious Fraud Office in fighting corporate crime is being undermined by “unacceptable behaviour” and “neglectful management”, a watchdog warned today.

The Chief Inspector of the Crown Prosecution Service, Kevin McGinty, highlighted staff complaints about perceived “favouritism” and allegations that not enough is being done to promote “zero tolerance of bullying”.

He said that some feel a culture of “do as I say, not as I do” exists at the “top of the office”, with managers whose conduct failed “to meet expectations” escaping action.

The findings of today’s report follow a request by SFO director Lisa Osofsky for Mr McGinty to carry out an independent assessment of staff engagement.

She admitted today that the report “doesn’t make comfortable reading” but that it had been “necessary to understand where we are” as she sought to improve performance.

“A number of initiatives are already under way to address some of the concerns identified,” she added.

The report warns that a “culture of delivery” has “led to tolerance of neglectful approaches to management or … unacceptable behaviours.”

It says some of the problems have been caused by the “fear of losing talented and experienced staff from long-running cases” as well as a previous failure within the SFO to address “cultural challenges”.

The report adds that some managers were seen as “approachable” but staff questioned how much others were committed to “SFO values”, warning of “perceived favouritism”.

The findings follow scrutiny of the SFO’s effectiveness. It has recently had mixed results, with some convictions for bribery and corruption counterbalanced by several high-profile acquittals.