Thousands paid by welfare services to those not eligible, audit report finds

Inadequate controls and mismanagement concerning guaranteed minimum income (GMI) payments were revealed in an audit report published on Wednesday. Serious gaps in the control mechanisms of the welfare benefits management system were described in the report, which identified issues concerning the approval period of applications, a lack of adequate assessment of key criteria and information and emphasised the need for strengthening control procedures. According to the audit office, a “significant number” of applications remained in the pre-approval state for prolonged periods, without the assessment being completed and without a final decision being taken. At the same time, GMI payments were made in cases where the conditions for its approval remained unmet. “In several cases, GMI payments were made for a number of years, despite the failure to submit the required supporting documents or the existence of serious outstanding issues,” the audit office said. The report found that, in 150 cases, pre-approval status was maintained for over two years despite the fact that supporting documents usually had to be submitted within three months. The auditors found that in one case, an applicant received a total of €102,528 from January 2017 to March 2024 without providing supporting documentation, with his application remaining in pre-approval status without adequate follow-up. During the re-audit in March 2024, the welfare benefits management service discovered that he had provided false information regarding his income and family situation. Full recovery of payments sought His application was terminated and a process was initiated for the recovery of the full amount paid to him. In another case, an applicant received €80,607 over a period of 83 months. Her application was terminated in March 2024, primarily because she was deemed voluntarily unemployed. The report further identified weaknesses in the assessment of key eligibility criteria such as the assessment of immovable property or other assets, with financial data having been inadequately documented. The auditors identified 89 cases in which GMI was granted during the period between July 2014 to October 2022, with the application of legislative exceptions for real estate. Of these, the nine cases with the highest property values were selected for audit. The value of the property ranged from €132,450 to €811,400, while the benefits paid per case ranged between €24,433 to €159,660. In one case, an applicant owned real estate whose value increased from €150,767 to €210,400, according to the land registry’s estimates for 2013 and 2018 respectively. Although the increase in value was recorded in the information system in May 2022, no further action was taken. This resulted in the applicant continuing to receive GMI payments. His application was terminated in January 2025 due to his income exceeding the threshold, after he had received a total of €24,433. Real estate not necessarily exploitable The audit service clarified, however, that in cases of bankruptcies, the registered real estate is not necessarily exploitable. In four cases examined, the insolvency department found that the real estate had not been exploited. The auditors also found that in some cases, the services had failed to adequately verify whether the conditions for permanent residence and other essential eligibility criteria had been met over time, saying this had led to GMI payments without sufficient verification of eligibility criteria. In other parts of the report, the audit office raised concerns about the storage and management of physical and digital records, pointing out that this had resulted in data and supporting documents not always being readily accessible. The audit office highlighted the need for the strengthening of control and monitoring procedures of GMI applications, warning of associated risks and emphasising the need for an immediate intervention. “These weaknesses create an increased risk of public funds being paid to individuals who are not genuine beneficiaries, undermining the credibility of the social welfare system and depriving the state of the ability to provide more effective and targeted social support to those who are genuinely in need,” it said. The audit office suggested the creation of an internal audit unit within the welfare benefits management service. With regard to real estate, the audit office recommends requesting a legal opinion on the amount of real estate to be taken into account in each case to provide clear guidance for the welfare benefits management service for the handling of these cases.