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Social Welfare Fraud.

Dáil Éireann Debate, Tuesday - 22 June 2004

Tuesday, 22 June 2004

Questions (289, 290)

John Bruton

Question:

289 Mr. J. Bruton asked the Minister for Social and Family Affairs the action she is taking on foot of the recent Comptroller and Auditor General’s report on control activity on fraud and other forms of wrong or mistaken claims against her Department; and if she will make a statement on the matter. [17508/04]

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John Bruton

Question:

290 Mr. J. Bruton asked the Minister for Social and Family Affairs if, as recommended by the Comptroller and Auditor General, she will assess scheme risks of each scheme administered by her Department and the lessons to be learnt from over-payments detected, in regard to all new and existing schemes; and the steps she has taken in this matter since receipt of the Comptroller and Auditor General’s report on the matter in February 2004. [17518/04]

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Written answers

I propose to take Questions Nos. 289 and 290 together.

The report in question examined my Department's existing fraud and abuse control activity, and the extent to which that activity is related to an assessment of the risks of fraud and error attaching to the different schemes. It also looked at the effectiveness of performance in the control area generally.

One of the main lessons emerging from the report is the need for control activity to be based on a risk assessment and risk management approach and this is an area which my Department will be progressing in the period ahead. This approach was also recommended in the report of a working group on the accountability of Secretaries General and accounting officers published in 2003.

The Comptroller and Auditor General's report acknowledges the emphasis which my Department's revised control strategy places on risk analysis of schemes to identify and prioritise areas of the highest risk of fraud and abuse. The risk analysis process commenced in late 2003 and action plans are currently being prepared in the light of the findings.

As part of the review and in consultation with the Comptroller and Auditor General's office my Department carried out a survey of the unemployment and one-parent family payment schemes in an attempt to assess underlying levels of fraud and error. Surveys of this kind will in future form an integral part of my Department's control strategy, with one such survey having commenced in May 2004 in one scheme area and a further two planned for later this year.

The report also includes an examination of detected overpayments and found that fraud accounted for 48% of all overpayments detected. The report emphasises that analysis of detected overpayments and their cause is a valuable pointer to areas where action needs to be taken either to implement new controls or modify existing procedures so as to reduce the level and value of overpayments occurring.

Currently, plans are being put in place for a new computerised central overpayments and debt management system within my Department. When fully operational, this will provide a facility to enhance the targeting of control work, make overpayment recovery more effective and provide better and more up-to-date information on the main types of fraud and error occurring within schemes.

The report also emphasises the use of prosecutions as a deterrent against fraud. The Department's policy is to consider all cases of fraud and abuse for prosecution and revised prosecution guidelines issued to staff in February 2003. In this regard, 482 cases were sent to the Central Prosecutions Service within my Department in 2003 and of these 405 have been referred for prosecution.

The report also suggests that in addition to prosecutions, it may be worth considering a greater array of sanctions such as administrative penalties. My Department has already done some work in this area and is in consultation with the Attorney General's office in the matter.

Overall the Comptroller and Auditor General's report has provided a very worthwhile assessment of control activity in the Department and raised a number of issues which will be taken on board in the context of implementing my Department's control strategy. In 2003, my Department realised total savings of €306.16 million in combating fraud and abuse involving 320,000 claim reviews and 7,600 employer inspections.

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