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Fraud in the management of Ministry of Defence buildings could be costing the tax payer £135 million a year, according to a hard-hitting report out last week.

The government's public spending watchdog, the National Audit Office, estimated that out of the £900 million annual spend on construction work and maintenance projects, 15 per cent is open to fraud. The report said that the MoD has no coherent antifraud strategy and suggests that contractors are colluding with subcontractors to defraud the state purse.

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