Dáil Éireann debate -
Tuesday, 10 Apr 2001

Vol. 534 No. 3

Written Answers. - Social Welfare Fraud.

Seán Ryan

Question:

59 Mr. S. Ryan asked the Minister for Social, Community and Family Affairs if he will provide a breakdown of social welfare fraud and abuse detection for 2000, including instances where the employer was also found to be complicit in social welfare fraud; and if he will make a statement on the matter. [10469/01]

Minister for Social, Community and Family Affairs (Mr. D. Ahern)

Fraud and abuse of the social welfare system can arise in a number of different ways, for example, where people claiming social welfare payments make false declarations or conceal material facts to obtain payment, personation, concurrent working and claiming social welfare payments, failure by an employer to comply with PRSI obligations, etc.

My Department has a comprehensive range of arrangements in place to ensure that fraud and abuse is kept to a minimum and that only those who are entitled to a payment actually receive it. All Department staff who are involved in making payments are aware of and concerned with the prevention of incorrect payments and the detection of abuse and there are some 600 staff who are specifically involved in control activity either as members of scheme control units, investigators and medical assessors.

The total amount of savings from control activities during 2000 was approximately £214 million. The main areas in which savings arose were unemployment payments (£107 million), sickness payments (£36 million); pensions, including one parent family payments, (£53 million), and recovery of unpaid PRSI contributions (£10.4 million).

Details of the extent of employer complicity in the context of social welfare fraud generally are not available. However, in any case where a fraud investigation is being pursued, the question of employer complicity is examined and all cases with a fraudulent or suspected fraudulent element are considered to establish whether legal proceedings are warranted. The total number of prosecutions in respect of employees and employers finalised in court during the year 2000 was 213 and a conviction was obtained in all except 14 of these cases. A total of 28 employers were convicted in respect of failing to pay PRSI arrears, failing to provide information, failing to maintain records and for obstructing a social welfare inspector and there was one successful prosecution of an employer for collusion.