Aberdeen City Council has confirmed it has recovered the entire £1,087,444 embezzled by former council tax and recovery team leader Michael Paterson — with more than £300,000 already repaid directly to affected residents’ accounts.
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Paterson, 60, was jailed for four years at the High Court in Edinburgh in July after admitting he siphoned money from the authority over 17 years. Investigators found he made 622 false refunds by exploiting “unrestricted and unmonitored” access to two finance systems, using the proceeds to fund foreign holidays, luxury hotels and fine dining. He began stealing in November 2006 and was reported by a colleague in 2023.
An update to the council’s Audit, Risk and Scrutiny Committee confirmed the full loss has now been recovered through a combination of asset realisation and insurance, with additional sums received via proceeds-of-crime action following Paterson’s conviction. Earlier this year, the authority recouped £104,630 from the sale of a property he owned and a further £417,523 from his pension pot. Officers have reviewed more than 1,800 accounts and say over £300,000 has been repatriated directly to individuals so far.
Senior officials told councillors that while no system can be made entirely fraud-proof, controls have been tightened and further improvements are being pursued across finance systems. Members also noted the reputational damage caused by the length of time the scheme went undetected and pressed for continued enhancements to oversight and monitoring.
