Welcome to today's webcast. My name is Liselotte Stray, and I am head of Group Communications. With me today to present our investigation into overbilling in Bravida Region Malmö are Bravida CEO Mattias Johansson and CFO Åsa Neving. The investigation has been carried out by Magnus Liljefors, Bravida's head of M&A. KPMG has carried out an audit on behalf of Bravida Sverige AB according to a special agreement. KPMG's review shows that Bravida has supplied the presented methodology to identify invoiced hours, registered hours, and costs on account 4640 for hired personnel for the agreements Bravida has with Region Skåne. KPMG's review also shows that Bravida has supplied the presented methodology to calculate and apply the average hourly cost for hired personnel to work orders for Region Skåne. KPMG has also been engaged to review Bravida's broader review of Bravida's customers in the public sector. That review will start immediately.
After Mattias and Åsa's presentation, there will be time for questions from analysts in this call. Media and press are welcome to call or email me to book in an interview after the webcast. With that said, I now hand over the word to our CEO Mattias Johansson. Go ahead.
Thank you, Liselotte. Welcome everyone to this presentation. I first want to start with I think it's important to try to frame this into what kind of size of the topic we're discussing. Bravida has 365 branches. We are in four countries. We have 80,000 customers. Yearly we are sending 450,000 invoices every year in Sweden. This topic, the branch in Malmö, and the agreement to Region Skåne is approximately SEK 50 million-SEK 60 million in annual sales. This is a small part of Bravida. For the one of you who is not Swedish, you can see on the map that the red dot is the area we are talking about. That is the city of Malmö or the region of Skåne.
When Region Skåne terminated its framework agreements with us and presented a report by EY, we initiated an internal review of all agreements in the 11 branches that had Region Skåne as client. The key question was if other Bravida branches also overbilled Region Skåne. It is the result from this review that we present to you today. Our investigation team has also compiled a report that is published on our website. Here are the conclusions from that report. First, the investigation shows that intentional overbilling occurred in the branch that Region Skåne aimed its complaints at. Second, Bravida will report the matter to the police. Third, in the other 10 branches, there has been no intentional overbilling. Now I would like to leave the floor to our CFO Åsa Neving to present how the review was carried out and what we found in more detail. Please, Åsa.
Thank you, Mattias. Let me start by describing the method that we have used. First of all, the period that we have reviewed is January 2021 to April 2024. By running reports in our systems, we have compared registered hours against invoiced hours per customer and per work order. We have then identified work orders with discrepancies. The discrepancies have then been further analyzed. We have reviewed the documents available in form of invoices, diaries, and notes made in our system. We have also interviewed relevant persons. Where we have not been able to explain the deviations, we have concluded that the customer has been overbilled. The discrepancies, however, have several acceptable explanations. First of all, blue-collar and white-collar employees normally report in different systems. So the main explanation that we have found is that service leaders have invoiced customers for the hours they have worked.
This is work that can be invoiced according to the underlying agreement. It can be, for instance, work with design, programming, or they have worked as a technician. In this case, they have not reported time on the customer work order but on an internal work order. Another explanation for discrepancies is that Bravida has hired subcontractors on an hourly basis, and these hours have been added to the invoice but not registered into our ERP system. A third explanation: a work order is completed and invoiced before all hours have been entered. Then the missed hours can be registered on the following work order. Moving on to the review. The review of Malmö Elservice shows that Region Skåne during the period 2021 to April 2024 was overbilled approximately SEK 1.5 million. This corresponds to approximately 4% of the department's total revenue from the customer in the period.
We have also identified another customer that has been overbilled approximately SEK 600,000 over the same period. This corresponds to just under 1% of the department's total revenue from the customer in the period. We have, however, not found any evidence of overbilling after October 2023. Employees who were involved in the overbilling have either left the company or have been removed from service. Region Skåne and the other identified customer will, of course, be compensated for this overbilling. In addition to Malmö Elservice, another 10 branches in Bravida have performed work for Region Skåne under the current agreements. During 2023, the total revenues from these agreements amounted to SEK 38.7 million. Malmö Elservice accounted for just over 50%. We have reviewed close to 2,000 work orders in addition to those relating to Malmö Elservice.
Our investigation concludes that it is no other branches in Region Malmö that have overbilled Region Skåne. We also did a third review. The investigation team has also carried out a broader review of customers with framework agreements in the public sector in the rest of Sweden. Deviations between invoiced and registered hours were examined in the same way as in Skåne. In total, Bravida's revenue from customers in the public sector billed on a cost-plus basis was SEK 1 billion in 2023. The review has targeted customers where Bravida in 2023 had a turnover of SEK 10 million or more. The turnover amounted to a total of SEK 472 million for these customers and contracts, or 47% of the total turnover for these type of contracts. The number of work orders included in the review are close to 26,000.
The investigation concludes that there is no evidence of any intentional overbilling in this review. We also conclude that the investigation covers such a large sample that the probability of intentional overbilling of customers in general is very small. You can read more about the method, the investigation result, and the conclusions in the report that we are publishing today. By that, I hand over the floor back to you, Mattias.
Thank you, Åsa. I will continue and say that the management team and I have not only tried to find out how Region Skåne was overbilled but also why. As you know, Bravida is a decentralized and relatively flat organization. Managers at all levels have a lot of freedom. We also have a culture with strong business ethics. The combination of decentralized decisions and strong value largely explains our success. We are close to the customers. We are flexible, and we can be trusted. What has happened is a brutal reminder that decentralized decision-making must be combined with strong internal control and relentless efforts to strengthen ethics and values. This work must never stop. As a consequence of what happened, we have decided to strengthen our processes and procedures for handling customer complaints and disputes.
Every complaint about paid invoices must be reported to a new function that Finance Director Åsa Neving is responsible for. The new function ensures that each case is handled correctly and within a reasonable time. At the same time as Åsa talked about, our review of Bravida at the national level continues. If we find irregularities, we will report them in Bravida's quarterly reports. If we suspect criminal acts, we report to the police. It's also clear that the way Region Skåne was treated by us shows major flaws. Region Skåne did not receive the attention it should have had. This realization has hit me hard. We can do better than this. Going forward, I will spend a lot of time identifying any flaws in processes, procedures, and guidelines. The company culture and leadership that caused these failures is also very important, of course.
With that, we're happy to answer your questions.
If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad.
Let's see if we have any questions.
No questions so far. Let's see. We give it a couple of minutes. It seems like Anton Lund has.
The next question comes from Anton Lund from Kepler Cheuvreux. Please go ahead.
Hi, Mattias. I'm curious about intentional. Have you found any unintentional errors?
I think that Åsa tried to explain it in a very good way. We have been analyzing, was it around 26,000 work orders. So the data is big. What we see is that there are some differences between reported hours and billed hours. But as Åsa said, it's mainly or it's explained by services carried out by the service leader who is writing their time or writing time in another system. And that is typical services is design work that you are coding for some parts of installation or investigating, trying to find the failure in systems. So some kind of consultancy work. So overall, the quality is good. What we have seen is that we can improve the administration of the work in some places. But overall, very good result. And maybe, Åsa, do you want to add something or?
No, I think that's good.
All right. Thank you.
Okay. No further questions, Anton. No. Let's see if we have someone else on the call.
No one else in the call. Maybe that's because we have also published the report where you can find a lot of data and how the work has been carried out as well. No, it seems like no further question. Is that correct?
Liselotte, do you want to?
Thank you. So in this call, analysts had the opportunity to call in. And as I said in the beginning, media and press are welcome to email me or call me to book in an interview after this webcast. And with that, we are thanking you so much for looking in today and wish you a further good day. Thank you.
Thank you.