Margaret Hodge: A4e contracts must be suspended
23 March 2012 Last updated at 01:02 GMT
Labour MP Margaret Hodge, who chairs the Commons Public Accounts Committee, has called on the government to suspend its contracts with the jobs training agency, A4e.
Welfare-to-work firm A4e knew of widespread potential fraud and systematic failures by management to control it, a leaked document suggests.
BBC Newsnight has obtained the results of a confidential 2009 internal audit of work by A4e's top recruiters.
A4e said the leaked report was a draft and it had repaid the value of three claims in full which had related to one employee.
But, speaking to Newsnight, Margaret Hodge called the report "shocking".