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Criminal asset measures 'failing' Criminal asset measures 'failing'
(about 9 hours later)
Former Home Secretary David Blunkett has told the BBC that laws intended to help strip criminals of illegally obtained assets are failing to deliver.Former Home Secretary David Blunkett has told the BBC that laws intended to help strip criminals of illegally obtained assets are failing to deliver.
Mr Blunkett said powers outlined in the 2002 Criminal Proceeds Act, which he oversaw, are not being properly used. Mr Blunkett said powers outlined in the 2002 Proceeds of Crime Act, which he oversaw, are not being properly used.
He described asset recovery rates as "deeply disappointing".He described asset recovery rates as "deeply disappointing".
He was speaking to Panorama as part of a programme showing how criminals are still beating the system and enjoying lavish lifestyles at public expense.He was speaking to Panorama as part of a programme showing how criminals are still beating the system and enjoying lavish lifestyles at public expense.
For the programme, Crime Pays, to be broadcast on Monday, reporter Samantha Poling went undercover to reveal how major drug dealers and money launderers are making a mockery of the high-profile laws.For the programme, Crime Pays, to be broadcast on Monday, reporter Samantha Poling went undercover to reveal how major drug dealers and money launderers are making a mockery of the high-profile laws.
It's been an exemplar of how not to do something David BlunkettIt's been an exemplar of how not to do something David Blunkett
Despite being one of the main architects of the legislation, Mr Blunkett admitted to Panorama that it has not worked:Despite being one of the main architects of the legislation, Mr Blunkett admitted to Panorama that it has not worked:
"We've failed on the ambition of bankrupting those who had made enormous amounts of money out of criminal behaviour," he said."We've failed on the ambition of bankrupting those who had made enormous amounts of money out of criminal behaviour," he said.
"It's been an exemplar of how not to do something," he added."It's been an exemplar of how not to do something," he added.
Using the Freedom of Information Act, Panorama found that in the last three years the Scottish unit responsible for criminal confiscation has frozen £60m of assets - but has only succeeded in taking back £6m of that total.Using the Freedom of Information Act, Panorama found that in the last three years the Scottish unit responsible for criminal confiscation has frozen £60m of assets - but has only succeeded in taking back £6m of that total.
In the UK as a whole, £137m was recovered last year.In the UK as a whole, £137m was recovered last year.
However, when asked how much money he would have expected to have been recovered by this stage, Mr Blunkett said:However, when asked how much money he would have expected to have been recovered by this stage, Mr Blunkett said:
"I would have thought somewhere around £590m a year would have been a reasonable target to have reached at this juncture.""I would have thought somewhere around £590m a year would have been a reasonable target to have reached at this juncture."
Cost to tax payersCost to tax payers
Graham Pearson, who led the elite police enforcement agency tasked with investigating serious criminals and going after their assets, told the programme that major criminals are well placed to avoid payment:Graham Pearson, who led the elite police enforcement agency tasked with investigating serious criminals and going after their assets, told the programme that major criminals are well placed to avoid payment:
"The 'Mr Bigs' are best positioned to protect themselves, so they hire the best lawyers, they attach to the best processes to protect themselves and distance themselves from investigation," he said."The 'Mr Bigs' are best positioned to protect themselves, so they hire the best lawyers, they attach to the best processes to protect themselves and distance themselves from investigation," he said.
Graham Piper was secretly filmed for Panorama's programmeGraham Piper was secretly filmed for Panorama's programme
For Panorama's programme, Poling secretly filmed a meeting with Graham Piper, who owned prestigious riding stables backing onto Chequers, the prime minister's country residence.For Panorama's programme, Poling secretly filmed a meeting with Graham Piper, who owned prestigious riding stables backing onto Chequers, the prime minister's country residence.
He was sentenced to 14 years in prison for his part in a £18m Colombian cocaine deal and his assets were frozen. But the taxpayer still has not seen a penny as Piper is still denying in court that has assets were from his crimes.He was sentenced to 14 years in prison for his part in a £18m Colombian cocaine deal and his assets were frozen. But the taxpayer still has not seen a penny as Piper is still denying in court that has assets were from his crimes.
He was filmed undercover admitting spending criminal proceeds on his property and money laundering:He was filmed undercover admitting spending criminal proceeds on his property and money laundering:
"Some of the money I put back into the farm, you know, buying equipment. I hadn't disclosed that to them. I mean, I spent about 300,000 or £400,000 on building work at the farm. A lot of that was funded through cash money," he said."Some of the money I put back into the farm, you know, buying equipment. I hadn't disclosed that to them. I mean, I spent about 300,000 or £400,000 on building work at the farm. A lot of that was funded through cash money," he said.
For years Piper has strung out the asset recovery process and legal costs and receivers fees have mounted up - eating away at the millions Piper was worth.For years Piper has strung out the asset recovery process and legal costs and receivers fees have mounted up - eating away at the millions Piper was worth.
This could mean that there is nothing left for the tax payer when the process ends.This could mean that there is nothing left for the tax payer when the process ends.
As Panorama reports, a 2007 National Audit Office enquiry found more than £16m had been spent on receivers fees and that in 12 cases the fees amounted to more than the assets frozen, leaving the tax paper to pick up the difference.As Panorama reports, a 2007 National Audit Office enquiry found more than £16m had been spent on receivers fees and that in 12 cases the fees amounted to more than the assets frozen, leaving the tax paper to pick up the difference.
Panorama: Crime Pays, Monday 16 March at 8.30pm on BBC One.Panorama: Crime Pays, Monday 16 March at 8.30pm on BBC One.