Fraud against the social welfare system can arise in a number of different ways, for example, where persons claiming social welfare payments make false declarations or conceal material facts to obtain payment, where there is deliberate failure to notify the Department of a change in circumstances or failure by an employer to comply with PRSI regulations.
In 1998, there were 14,193 overpayments amounting to €13.6 million, while in 1999, 15,094 overpayments amounting to €15.4 million and in 2000, 12,625 overpayments amounting to €14.3 million were attributed to fraud or suspected fraud. The figures for 2001 are currently being compiled and will be available by the end of March. My Department has a comprehensive range of measures in place to ensure that fraud is kept to a minimum and that only those who are entitled to a payment actually receive it. All departmental staff who are involved in making payments have a responsibility for the prevention of incorrect payments and the detection of fraud.
There are 600 staff specifically engaged on control activities at local, regional and national level. These officers investigate cases of concurrent working and claiming of social welfare payments, carry out inspections of employers in relation to their PRSI obligations, review customers' means for assistance payments and monitor their ongoing entitlement to social welfare payments. It is my Department's policy to try to recover all moneys incorrectly paid and every effort is made to recover overpayments in full, having regard to the provisions of a code of practice which is in place to regulate this process. Overpayments which result from fraud are given greatest priority and their recovery is vigorously pursued.
Prosecutions are taken against persons who defraud social welfare payments schemes and against employers who fail to honour their obligations under the PRSI system. All cases involving fraud are examined with a view to initiating legal proceedings. This involves striking a balance between the need to vigorously pursue serious fraud, while at the same time having regard to the individual circumstances of each case.
During the period referred to in the question, 1998 to 2001, a total of 1,027 cases were forwarded by my Department to the Chief State Solicitor's office for prosecution. A total of 716 were finalised by the courts and, at the end of 2001, there was a further 471 cases awaiting a hearing in the courts.