Businesses in Waltham Forest and Redbridge may be losing £17 million per year to fraud when they purchase goods and services, according to new research.

Figures released by software firm blur Group, based on analysis of Government figures, show firms in the area could be losing millions collectively through procurement fraud.

The study also found Waltham Forest and Redbridge councils may have also lost a further £2.9 million in public money to procurement fraud.

Procurement fraud can include deliberate rigging while firms bid for contracts and rogue spending by employees.

Philip Letts, blur Group chief executive, said: “The figures are shocking but Redbridge and Waltham Forest is not alone on this issue.

“As well as private sector companies wasting millions of pounds of their own potential profit, a major aspect of procurement fraud falls within the public sector which means taxpayers’ money is being wasted too.

“This part of an organisation’s spend is largely unmanaged, meaning many are not even aware that the issue is so prevalent.

“At a time when councils are seeking greater financial responsibility through devolution, it is imperative this is addressed.”

Across the capital, £20 million was found to have been lost to procurement fraud in Barking and Dagenham and Havering, including £2.9 million by local governments.

In Enfield, £16.5 million was lost last year, including £2 million by local authorities.