[WATCH] €3.8 million savings in benefit fraud clampdown

€3.8 million benefit fraud clampdown • Video Chris Mangion

The government saved €3, 832,000 last year, after 887 cases of benefit fraud were stopped or reviewed by the Benefit Fraud Investigation Department. Minister for the Family and Social Solidarity Michael Farrugia said that 2014 was a record year in this respect, with the previous record in 2010, standing at  €3,716,295.

Last year, the department investigated 1,391 cases of suspected fraud. Of those cases, 430 were not found to be breaking any provisions. There is still a substantial number of cases that are being processed by the social solidarity department.

Farrugia presented this data during a press conference earlier this morning. Farrugia said that the Department has been praised for its work in a report published by the office of the General Auditor in January.

“The Department has continued to work towards strengthening the co-ordination in the collection of information, which is essential to identify people who are abusing the social benefits system,” said Farrugia.

Farrugia said that according to the 2015 Budget, those receiving benefits they are not entitled to, will have until the end of February to come forward to the department out of their own free will and regularize their position.

A fine of 15% of the total amount owed will apply. Those who do not choose to come forward will have to repay all the money owed as well as additional fines. The money saved from these cases will eventually go into funding people who genuinely need the social benefits they have applied for.

“We want to emphasize that people who receive social benefits have a duty to speak up about their situations and to inform the department about any changes that might have happened in their lives. People have this one-time chance to declare if they have been abusing the system,”

Farrugia said that those who are unable to go to the appropriate offices in person can contact the department to ask for more information, and they can also send relatives in their place.

Farrugia said that the system is meant to incentivize the declaration of benefit fraud rather than to disincentivize not coming forward.

“We have no intention to conduct a witch hunt,” Farrugia said. “We know that most of those who claim benefits do so because they are in genuine need.”

Farrugia added that those who receive benefits will no longer risk losing them if they choose to travel.

“People will be obliged to inform the Social Security Department when they intend to travel and for how long,” Farrugia said. “ People should have a right to travel, in this age of freedom of movement. Only two other EU countries restrict travel for those on benefits.”

Since its inception in January 2006, the department has stopped or reviewed an estimated 8,500 cases of benefit fraud, and it has saved a total of €31,700,000.