Concern over National Savings

MPs Warned of National Savings "Black Hole"

The National Audit Office said that most of the problems which came to light in the past remain in respect of the 1995 accounts.

In a report to Parliament, the National Audit Office pointed out that figures for the end of 1995 showed investors owed £33.7 million to National Savings.

A £50 million black hole in the accounts was first exposed in October 1996. National Savings responded by saying the shortfall had been reduced dramatically after investigations.

Earlier this year MPs fiercely criticised National Savings over the discrepancies and demanded an investigation into whether fraud was involved.

National Savings, a Government agency, looks after more than £60 billion on behalf of savers, including pensioners and children. Its products include savings certificates and premium bonds.