Philip Webster, Political Editor and Richard Ford, Home Correspondent
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More than 9,000 illegal immigrants could have been cleared to work in the private security industry, some of them guarding sensitive Whitehall locations and some even under Metropolitan Police contracts, it emerged last night.
The full scale of the potential risk from the failure of security firms to carry out proper checks on their employees surfaced as Jacqui Smith, the Home Secretary, fought off claims that she had engaged in a “cover-up” of the problem when the information became known to her in July.
In a combative Commons performance she said that she made no apology for being the sort of minister whose first reaction was not what she should say about an issue but what she should do about it. Her priority had been to establish the full scale of the problem and to take robust action. She had not told the Prime Minister at the time because there had been no blunder, no system failure in the Home Office, and she had embarked on action to strengthen procedures.
At the same time, however, it emerged that the Border and Immigration Agency is expected to begin a wave of prosecutions against employers who hired illegal workers in breach of their legal obligations. They could face fines of up to £5,000 for every illegal worker. One illegal immigrant worked for the London police guarding a garage where the Prime Minister’s official car is taken for repairs.
Whitehall documents confirming that Ms Smith had been briefed on the scale of the problem were leaked yesterday by the Tories, prompting accusations that she had put “spin” before public safety and had been guilty of “blunder, panic and cover-up”.
She told MPs that she had not been ready to go public on the problem because the analysis of the issue was not complete. Her priority had been to establish the full nature of the problem “rather than immediately to put incomplete and potentially misleading information into the public domain”.
Figures given by the Home Secretary to the Commons suggested, however, that the numbers of illegal workers licensed to work in security could be much higher than the 5,000 that has been cited so far.
Checks have started on the 40,000 workers from outside the EU who have been granted permission to work. Of the 6,000 checked so far by the BIA, 77 per cent have been shown to have the right to work, leaving as many as 23 per cent who may not have had the right to work. If that rate applied across the 40,000 there would be 9,200 illegal workers.
Ms Smith failed to answer questions about how many of the illegal workers had been found, how many had been deported and whether any employer hiring them had been prosecuted. She also failed to reply to a question on how many had been found guarding government buildings or other parts of the critical national infrastructure.
Immigration sources said that no order had been issued urging them to try to find illegal workers and that if any such order were issued, it would not receive the highest priority as the workers did not have criminal convictions.
The splitting of the department into a Home Office focused on counterter-rorism and a separate Ministry of Justice was seen by senior officials as an opportunity to rid it of its reputation for poor management and crisis.
The department remains sensitive about the issue of foreign nationals, immigration and illegal working. Only a few weeks ago it deliberately made no announcement that the package of support for foreign national prisoners wishing to return home had been almost doubled to £1,500. The information was leaked to The Times and the Home Office explanation for not formally announcing the new figure was that it was simply a time-limited enhancement of an existing scheme.
Ms Smith disclosed that concerns were first raised in April by the BIA, after it found 44 illegals working for a security company, including 12 who were guarding locations for the Metropolitan Police. The leaked e-mails make clear that the Home Office was anxious to avoid further damaging publicity. An August 9 e-mail from a private secretary, Mark Williams, said that she agreed that the issue was “not ready for public announcement” as she did not think the available information was “good enough for press office or ministers to use to explain the situation”.
Eleven days later, a report to Ms Smith from the Home Office’s Policing Policy and Operations Directorate said: “Press Office continues to recommend strongly that no public announcement is made . . . Any announcement about illegal migrant workers and SIA licences would not be presented by the media as a positive story.”

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Has Sir Ian Blair voiced his full confidence in the Home Secretary yet?
MarkS, Leeds,
I am no longer surprised or shocked by anything from this excuse of a government.
How much more pain do we have to put up with from them?
Those who lived through the effects of the sixties Labour governments will remember history does repeat itself!
Geoff, Royston,
why not just have a million sets of keys cut, open the borders and let anyone who wants to come in just walk through - ooppps sorry that what's what seems to be happening anyway!!!
Time for a change - separation isn't a bad thing, it can protect the indigenous people of the country, preserve the heritage and history and encourage people to want to learn more of culture.
Hobbitfeet, bristol,
It makes one wonder how much more incompetence has to be revealed. I think Jack Straw made a mess of the Home Office last time he was there didn't he? The thing about public office is, failure equates to success and promotion. We live in topsy-turvy (New Labour) times don't we?
Rod Ballard, Leicester, Leicestershire
Thank god for a relatively free press and for the few whistleblowers or we would know nothing of what our corrupt and incompetent politicians are up to, or rather not up to.
I have to be CRB vetted to work in the travel sector and will soon have to submit to same to continue to work as a driving instructor. A position I qualified for in 1970. I an a WASP born in England and living here all my life.
Will the government please give me £1500 to leave these overtaxed and badly managed shores ?
m j merriman, nottingham, notts
My 56 year old husband who is eminently well qualified can't get a job, but we can employ illegal immigrants. Madness. If you can, now's the time to leave.
judy, Liverpool, england
As everyone knows, we have to treat nulab statistics with an extremely large pinch of salt, so we can safely assume that double the amount is more relevant and possibly a bit more besides. I feel we are being tormented by a higher being by having this incompetant shower foisted on us. We are all of us in hell already and being poked in the eye by Satan and his imps.
Albert Fisher, kettering,
As it is against the law to employ illegal immigrants how many very well paid senior and junior civil servants be taken to court, as would any other employer in this country, let me guess.........................................absolutely NONE!
All the Civil Servants responsible for this continuing fiasco should at least be sacked and denied their inflation proofed pensions, it's no good blaming the Home Secretary on this occasion shes only been in post for a few weeks, too short a time to discover the amount of corruption at the Home Office.
Brendan, Gloucester, UK
Eddie Keane, illegal immigrants are breaking the law by being in the UK - this is the evidence of criminal behaviour you wanted to see.
But these people aren't all bad are they? OK, fair point; we'll buy them all one way tickets and fly them to you in Australia.
Kevin, Greater Manchester, UK
Have any of these illegal refugees been tried and convicted of anything?If not then let's make their residence in Britain legal and allow them to continue working in the poorly paid jobs that British born residents won't do - after the neccessary background checks of course.
Illegal immigrants are not all criminals and I would like to see the evidence of criminality amongst the illegals detected working for the various Security firms contracted to the Govt.
Hey-these people pay tax and contribute to the wellbeing of the nation.Demonising such a group only marginalises them further - most illegals want what the rest of us want-namely peace, security and the opportunity to work and raise children in a supportive,progressive and tolerant environment.
Eddie Keane, Brisbane, Qld.,Australia
Politicians and other public servants forget they are just that - the high wages probably ges to their heads. This woman will never resign, just like many before her who refuse to take blame for cock-ups in management or administration. Gone are the days when, to win elections, politicians needed to be both effective and efficient....now they just need to be attractive to the media and 'appear' to be effective and efficient.
Derek Clifton, Andover, Hapshire, England
Cover ups, sleaze and coruption. Isn't that what took down the Tories? After so lon in power Labour have become complacent, just like theTories before them. There's not a single senior politician or member of thier staff we can trust - regardless of party. The old joke has come true "How do you know when a politician is lying? Thier lips are moving!", only now of course the're lying even when thier lips aren't moving!! - maybe the Monster Raving Loony Party should re-form, I doubt they could do worse!
Ron, Milton Keynes, Bucks
Oh Goodness, we read so often, of so many, levels of incompetence, irresponsibility and Such True Naivety, I now despair of our political servants.
Has joining the EU made them so ?
Or, were they always thus?
Mike, London, UK
It's time we took a more stringent stand on immigration. i have nothing against the thousands (millions?) of hard working immigrants who have come here legally, or at least registered once they arrived, but anyone who avoids the system should be returned to thier last known or identifiable country of origin - full stop. No appeals. If they really want to come here they should do it properly and not just walk in! Until we make it clear we will have no truck with people who think we have open house, they will continue to abuse us. As for the employers - punative fines, suspended prison sentances and banned from running a company for life. It's time for hard line tactics to put some respect back into our society.
Ron, Milton Keynes, Bucks
Just proves that England is the dustbin of the World
and that it needs a strong Englishman to run our country.
Certainly not someone who couldn't care less.
Peter Fullagar, West Wickham, England
Why all the talk of incompetence and blunder, when we all know it has been deliberate?
Arthur W., Swindon, England
Will the government deport the illegal immigrants or will they all no doubt remain in the country and in jobs to protect their human rights?
Marian, London, UK
Just think that in the past/Future? the person who may be 'directing' you, rightly or wrongly may not have the legal right to be in this country.!!
does anyone have any confidence in those 'checking' on who or who is not 'illegal'? steps will be taken to 'reduce' the number of those who do not have proper clearance
mikecassidy, oxford, england
We need a new government and quickly
Janet, Essex, UK
How would immigration officials know about criminal convictions of illegal workers, by the very nature of being here outside the systems of detection. Perhaps they should be given a criminal conviction when found, this might deter them in the first instance.
johnevans, manchester, uk
Ms Smith should resign. She wont tho until she, like all our public servants, scank us all amassing piles of expenses first!
Anne, nottingham,
Another revelation of gross incompetence and bluster, cloaked under the guise of robust action !
Haven't people had enough yet ?
Chris, Newcastle upon Tyne,
How can the Immigration department state that illegal workers "do not have criminal convictions", if they don't know who they are??
Steve, Kegworth, Leicestershire
I don't suppose that mere incompetence or dishonesty will prevent this minister from taking a five-figure bonus payment.
Neil, Gloucestershire, England
A Nulaber Minister being economical with the truth?
What a turn up for the book!
Jon Leigh, Southern, France