Welfare Dept to check for benefit abuses

Press, 17 November 1980, Page 17

Welfare Dept to check for benefit abuses

Abuse of Social Welfare benefit payments is rife in Christchurch, according to the Department’s regional director. Mr C. L. Waters. In the 12 months ended October, there were 114 cases, involving more than $144,600. of beneficiaries who appeared to have deliberately misled the department to obtain benefit money they were not entitled to. he said. Most have been prosecuted. At least one or two people a week were notv appearing in the District Court at Christchurch charged with making false declarations to the department. A few years ago this was a rarity. The largest number of offences related to employment benefits. From the beginning of i April to the end of October,! 69 cases Involving $93,745, were referred to the police for prosecution. Fifty-five of. these involved working while still receiving a bene- i it and not advising the de-1 partmenl. The overpayments Involved were alarming, said ; Mr Waters. In the last six months about six cases had involved more than $5OOO. Every week that someone drew a benefit they were not'entitled to it was a loss of $lOO. the department is particularly worried about the number of undetected benefit frauds. From March 1, 1981, the department will begin random checks on beneficiaries throughout New Zealand. The public Would obvious object to too many “bureaucratid Snoopers” but the department had to make sure that beneficiaries were receiving exactly what they were entitled to — no more, no less, said Mr Waters.

I. Such a scheme depended to a large extent on public honesty but it would be wrecked if abuse continued on such a scale. Many people seemed to have nd compunction in defrauding a Government department but they would probably think twice about robbing a bank. Mr Waters emphasised 'that any person who deliberately misled the department ■was liable to a fine of up to $5OO, up to 12 months imprisonment. or both. In one recent case in Christchurch the judge had imposed a sentence of three months imprisonment. The department normally asked for a full refund of the amount overpaid. If necessary it would wait until a ; debtor was eligible for •superannuation to reclaim the money. i The department is also concerned about the number of payment orders that are I lost. From the beginning of i April to the end of October, •679 payment queries, involving more than $51,600 ■were referred to the police.