Michael Bell
Ceist:31 Mr. Bell asked the Minister for Social Welfare the number of companies prosecuted or otherwise disciplined in 1989 for fraudulent activity in relation to social welfare claims; and if he will make a statement on the matter.
Written Answers. - Social Welfare Acts Offences.
During 1989 my Department prosecuted 43 employers for various offences under the Social Welfare Acts and Regulations. These ranged from failure to maintain proper wages records, failure to produce records, obstruction of inspectors and offences of aiding and abetting their employees to fraudulently draw social welfare payments. Of the 43, two were limited companies, one was trading as a partnership and the remainder of the prosecutions were in respect of individual employers.
It is my policy to prosecute employers who contravene the Social Welfare Acts and Regulations where the evidence and circumstances justify it. Special emphasis is now placed on the failure by employers and sub-contractors in the prescribed industries to notify details of new employees to my Department. Failure to make these notifications is regarded as a serious matter in view of the potential for fraudulent claims to evade detection in those cases.
Six employers were prosecuted for aiding and abetting their employees to fraudulently draw social welfare payments. Four received fines of up to £1,000. Two were sentenced to two terms each of six months in prison, the sentences to run concurrently. Employers not operating the full system are reported to the Revenue Commissioners for appropriate action by them.