MASSIVE RISK TO STATE WITH CASH IN TRANSIT ARRANGEMENTS
Issued : Tuesday 21 February, 2017
Some Cash in Transit businesses handle more money than the banks, and one company dominates the industry in Ireland.
Labour Party Spokesperson on Jobs, Enterprise and Innovation Alan Kelly today said:
“There is a massive security and financial risk to the State with the current Cash-in-Transit arrangements in place”.
Deputy Kelly was reacting to information that the State used one company for the purposes of disseminating social welfare payments on a weekly basis.
Deputy Kelly said “It is clear there is a huge risk to the financial operation of this State when one company is in charge of delivering social welfare payments and keeping our ATMs stocked.
"Some Cash in Transit businesses handle more money than the banks so when you consider the total lack of risk assessment and the failure to spread that risk it is clear the situation is ludicrous.
"Cash in transit is a very high risk business which is regularly targeted by organized criminals. We have all read some terrible news stories where there have been kidnappings and tiger kidnappings so for the State to keep all their eggs in one basket is limited in vision and damage mitigation.
“Let’s not forget the impact of the loss of social welfare spend even for one week for businesses and the jobs reliant on them throughout Ireland so it is clear that to allow the situation continue is foolhardy.
"The Minister for Social Protection Leo Varadkar needs to address this situation as a priority and alleviate the massive risk to the Department of Social Protection” Deputy Kelly concluded.
NOTES:
G4S operate all the cash dessimnation for the Department of Social Protection and are tasked with providing cash for ATM machines throughout the country.
This presents a serious risk if there’s a tiger kidnap situation but worse still the company in question are having trading difficulties in that they have sought a 9% reduction in wages in 2013, put some staff on protective notice and their parent company in the UK is not doing well. So if they go down, there is no company equipped to deal with facilitating the service as they own 63% of the market.
