In 2008, refugee and asylum charities criticised A4e for asking them to work as its unpaid partners.
Farrukh Husain, director of the Migrants Resource Centre, accused A4e of "gross exploitation of the voluntary sector". He further commented, "A4e must think the voluntary sector is naive to simply wish to sign up to a relationship that delivers little in return for voluntary organisations and fattens up the profits of A4e."
Maurice Wren, director of Asylum Aid, expressed concern that A4e's actions could reduce the quality of bids for future Home Office contracts to help and support refugees: "This could get some organisations thinking, 'if we are to have any chance of getting a contract, we have to reduce our costs'. This means a poorer service for a very vulnerable client group."
On 28 June 2009, The Observer disclosed information regarding a fraud investigation into A4e which was instigated after the Department for Work and Pensions uncovered discrepancies in its "confirmation of employment" forms - discrepancies which centred upon the falsification of employers' signatures by a number of recruiters. One recruiter also made a fraudulent deal with a local temp agency.
'All the matters raised in the article are known to both A4e and the DWP and have been the subject of both an A4e investigation and a DWP led investigation. The A4e investigation revealed that whilst candidates had real job opportunities, these jobs did not meet the funding criteria being less than 13 weeks and 16 hours a week in duration. These investigations have resulted in the departure of both individuals from the company and the ceasing of all activity with the employment agency concerned.'
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Teesside
Another case of signature forgery emerged on 6 March 2012. This took place while A4e was working for Redcar and Cleveland Council to help disadvantaged young people into education, training or employment. A Council inquiry found that learners' signatures had been forged to exaggerate the number of vulnerable people the project had reached. A4e was forced to withdraw from this part of the project.
Middlesbrough South and East Cleveland MP Tom Blenkinsop said: 'There needs to be a full investigation into this case. This is public money here, and this must be looked into to restore confidence into all regeneration projects carried out locally.'
Fraud investigations and jail sentences
In January 2012, four former employees of A4e were arrested on suspicion of fraud dating back to 2010. The alleged fraud was uncovered by an internal investigation by A4e. The two women, aged 28 and 49, and two men, aged 35 and 41 were bailed until mid-March.
On 22 February, The Guardian revealed that A4e had forced jobseekers to work unpaid in its own offices. They were investigated nine times by the Department for Work and Pensions since 2005, and were forced to repay public funds on five occasions after government investigations found 'irregularities'.
Emma Harrison resigned as chairman of A4e on 24 February 2012 amid criticism of 'improper' conflicts of interest regarding government contracts and allegations of fraud from whistleblowers.
On 26 February 2012, Thames Valley Police's Economic Crime Unit was revealed to be investigating the alleged theft by A4e staff of vouchers meant to help the unemployed back to work.
On 9 March 2012, the Department for Work and Pensions announced it had 'been made aware of an allegation of attempted fraud in relation to a Mandatory Work Activity contract with A4e'. It stated that it had begun an investigation into this allegation and also, as a result of the allegation, an 'independent audit of all our commercial relationships with A4e'.
On 22 March 2012, the BBC's Newsnight current affairs programme revealed that they had received a leaked document suggesting 'systemic fraud' at the company. The following day, Labour MP Margaret Hodge, who chairs the Commons Public Accounts Committee, called on the government to suspend its contracts with the jobs training agency.
On 3 April 2012, Exaro News revealed that A4e was being lined up for another major government contract despite being at the centre of a fraud investigation. Ministers made the company the preferred bidder to take over the sensitive Equality and Human Rights Commission (EHRC) helpline to advise people of their rights in discrimination cases.
On 20 April 2012, Police officers raided A4e's office in Slough after allegations were referred to them by the Department for Work and Pensions. A 33-year-old man was arrested and later bailed.
On 22 May 2012, Exaro News published leaked internal audit report which exposed 'potential fraud' at A4e. The report compiled by the audit and risk department examined a sample of 224 of the company's job placements and found that "potential fraudulent/irregular activity is not confined to one particular geographical area of the division and shows a potential systematic failure to mitigate the risk towards this behaviour at both an office and regional level". Auditors also discovered A4e sent an unemployed job-seeker to work in lap-dance club.
In March 2015, six former employees were jailed for forging files in a scam that was said to have cost taxpayers almost £300,000. Another four ex-members of staff received suspended prison sentences for what Judge Angela Morris said were ‘deceitful and unscrupulous’ practices. They had falsified employer details, time sheets and jobseekers' signatures to inflate the numbers they said they had helped into work.
Liam Byrne statement
Liam Byrne, Shadow Work and Pensions Secretary, responded to the DWP announcement of 9 March as follows,
"The time has come for full disclosure. With more questions over A4e and David Cameron's former family tsar Emma Harrison coming by the day, ministers must now come clean and tell the public exactly what they know and when they were informed about all allegations of fraud at A4e... the Government needs to make clear what new safeguards are being put in place to prevent this spreading any further, and with huge questions hanging over the entire Work Programme – and billions of pounds of public money at stake – ministers must publish all provider performance data immediately."
Criticism from Fiona Mactaggart
On 2 March 2012, Fiona Mactaggart, Labour MP for Slough, revealed she had reported A4e to the national auditor on three occasions over the preceding two years, following complaints from her constituents. She stated that A4e "often provides poor service to unemployed people", "offered courses which had little worth and no recognition" and "are pursuing a policy which reduces the total number of jobs available".
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