Editorial

Anger generally wells up whenever fraud in the welfare system, or in any government entity responsible for the collection or dispensing of money, is reported. This is a good sign as it shows that society cares. Because money fraudulently drained out of the system is money lost to other well-deserving causes, governments everywhere seek to plug loopholes.

However, realistically speaking, it is most unlikely that fraud will ever be eliminated completely but efforts aimed at checking it are well worth it, as shown by the latest news given by Social Policy Minister John Dalli that benefit fraud investigators last year saved the government €10.5 million.

A very serious case of fraud at the VAT department, reported over the past few days and which is believed to run into millions of euro, will no doubt raise a number of questions if the police investigations lead to confirmation of the scam. At this stage, however, it is best to avoid speculation and wait until the investigations take their course. The case being investigated at the VAT department came just as Mr Dalli tried to bring the issue of fraud in the welfare system to the forefront of the national discussion. Unfortunately, the matter was eclipsed by other news.

Vigilance against fraud has to be kept up to its highest level all the time. The welfare benefits system is usually a prime target but fraud can be resorted to in other schemes as well, such as, for example, in the free distribution of medicine.

People have been found taking free medicine when they no longer need it. When the cost of medicine has been rising so sharply, it will definitely pay to ensure that free medicine is only given to those who really need it and who cannot afford it.

The plan Mr Dalli is working out to check abuse in the payment of welfare benefits, makes a great deal of sense. He is setting up a means-testing unit that will carry out a proper analysis of the income of anyone applying for social benefits. It has been pointed out that, although different departments dealing with people in need would retain their autonomy, they would all use the certification issued by the means-testing unit. Inspectors will be appointed to ensure that there will not be duplication of work. The minister said: "We want a controlled and professionally-developed system". This is how it should be and it is, therefore, important that the new structure be made as fool-proof as possible.

Mr Dalli said that practices developed some 50 years ago were not necessarily relevant today. Times have changed and new investigative tools should make it easier for administrations to check the veracity of claims made by people seeking benefits. Mr Dalli could not have put it better when he said: "It is easy for everyone to make a shopping list of what they need and come to the government to get a free service. We need to eradicate the mentality that public funds are there for the taking because this threatens the country's sustainability".

Eradicating such mentality is probably the hardest nut to crack but, in such a small place as Malta, the problem should not present insurmountable difficulties.

It goes without saying that in the process of the exercise Mr Dalli has in mind, extra care would have to be taken not to hit those who genuinely need the benefit they are applying for. The onslaught ought to be concentrated on those who abuse the system.