Paul Nicholas Gogarty
Question:78 Mr. Gogarty asked the Minister for Social and Family Affairs if he has satisfied himself that the definition of fraud in his Department is adequate. [6074/05]
View answerWednesday, 23 February 2005
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Written answers
Overpayments of social welfare payments are categorised as fraud or non-fraud. Non-fraud cases are those which arise primarily due to customer or third party error, and some are due to departmental error. Fraud cases arise mainly on foot of false declarations by customers concerning their employment, income or family status.
The question as to whether an overpayment which has arisen involves fraud is a matter for decision by the statutorily appointed deciding officer dealing with any case.
Fraud arises where social welfare payments are made on the basis of any statement or representation which was, to the knowledge of the person making it, false or misleading in a material respect or by reason of the wilful concealment of any material fact.
This applies in situations such as a person claiming unemployment payments when they are in fact working, or failing to disclose their full means or increases in their means. Other situations would include failing to disclose the true employment or residential status of their spouse, partner or dependants, absenting themselves or their dependants from the State, or working while claiming to be incapable of work.
The figures for fraud overpayments for 2004 are not yet available. During 2003, the value of all fraud overpayments was €13.73 million which consisted of a total of 16,681 cases. The number of fraud overpayments increased by 21%, while the value increased by 16% in comparison with 2002. The major element of this consisted of concurrent working and claiming, with an overpayment value of €7.29 million on 13,562 cases. Other main elements consisted of €1.53 million in 238 cases of means, income or earnings not disclosed, €0.85 million in 83 cases where marital status changed and €0.80 million in 691 cases of being absent from the State.
Cases involving fraud or abuse are examined with a view to initiating legal proceedings. Prosecutions are taken against employers who fail to carry out their statutory obligations, and persons who defraud the social welfare payments system. The decision to prosecute in a given case is based on the nature of the alleged offence, the evidence available and the particular circumstances of the individual employer or claimant.
My Department aims to protect the schemes from fraud or abuse while at the same time ensuring that the customers receive a quality and timely service.