The search is under way for victims of an embezzler who exploited a loophole in Aberdeen City Council’s computer system to steal more than £1 million.
Bosses at Marischal College are bracing for worried calls from council taxpayers, concerned they might have been scammed by Michael Paterson.
But they have urged concerned citizens to resist, as they work through their records to find victims themselves.
While leading the city’s council tax and recovery team, Paterson, 59, scammed £1,087,444 over a 17-year period.
The sacked council boss was only caught when a colleague noticed an “odd” refund being put through last September.
As team leader, Paterson had unchecked authority to issue refunds of up to £3,000 and to change the account they money would be paid into.
And he used that trusted position to transfer hundreds of thousands of pounds to two bank accounts in his name – and splash the cash on foreign holidays, eating out and the tech gadgets.
Aberdeen City Council: ‘Don’t call us, we’ll call you’ to potential scam victims
And despite the media storm surrounding the seven-figure embezzlement, council bosses are pleading for time to work out who is owed what.
A spokeswoman told us: “The council notes the conclusion of today’s court case involving its former employee.
“We are in the process of checking our records and will be directly contacting anyone impacted with a view to reinstating council tax credit due – there is no requirement to contact us.
“The council apologises to any resident affected.”
Pressure to ensure council tax loopholes are closed
The spokeswoman added that the investigation into Paterson’s crime had led to financial controls and processes being “reviewed and strengthened”.
That work included looking specifically at the council tax refund arrangements.
But convener of the council’s powerful audit committee, M Tauqeer Malik, is seeking assurances that nothing like this can happen again.
“Today marks a sad day for Aberdeen City Council, as huge failings in our systems are exposed,” the Labour group leader told The P&J.
“I have asked chief officers to make sure that the council takes every opportunity to recover as much of the stolen money as it can.
“The council should seek to ask the court for an order to make sure council taxpayers have any stolen money returned.
“And I have sought assurances from officers that all exposed loopholes are closed and that the council operates a secure system that can pick up problems like this, so it can never happen again – especially over such a long period of time.”
Aberdeen City Council £1m embezzlement predates almost every councillor
Stretching back to 2006, Paterson’s embezzlement is not an issue only for the SNP and Liberal Democrats currently at the helm.
Mr Malik’s group was in charge for a decade during Paterson’s spree. But it even predates the Labour-led coalition with the Conservatives which rose to power in 2012.
Only three Lib Dems councillors, council co-leader Ian Yuill, depute provost Steve Delaney and Martin Greig, have outlasted Paterson’s skimming.
Having pled guilty at the High Court in Edinburgh, Paterson will be sentenced next month.
