The Social Security Department at the end of last year was owed €18.6 million in refunds of over-paid social security payments.

There is however disagreement between the department and the Office of the Auditor-General as to the period within which the funds may be recovered.

The department says the funds must be recovered within five years after which prescription applies. The Auditor-General says the period is two years.

The department argues that the two-year limit only applies to overpayments made as a result of a mistake by the department itself while the recovery period for overpayment as a result of fraud is five years..

Advice is being sought from the Attorney General, with the issue involving millions of euros.

Mark Musu’, permanent secretary at the Ministry of Social Policy told a sitting of the Public Accounts Committee this evening that the department was planning to improve its business intelligence as a way to detect benefit abuse. The measures will also include a uniform system of means testing where this is required.

Department officials welcomed Budget measures to combat benefit fraud, pointing out that effective deterrent current did not exist.

They explained that many saw benefit fraud as worth the risk since refunds to the department, when abuse was found, could not be easily made once beneficiaries had no property and no funds appeared in their bank accounts.

Fines were not imposed and the department could also not apply a general hypothec in rare cases where beneficiaries had some property. The issue was being discussed within the department.