Social benefits abusers are being urged to regularise their position by refunding just 15 per cent of the amount defrauded and in return avoid tougher action.
Details of this amnesty period announced in the Budget were divulged yesterday by Social Policy Minister Michael Farrugia during a media briefing.
The Social Policy Minister emphasised that the government’s aim of this amnesty was not to embark on a witch hunt. Instead, those at fault were being encouraged to profit from this “one-time opportunity” and come forward by the end of next month when the deadline expired.
On the other hand, he rejected criticism that the amnesty terms were too lenient on those who may have been abusing of taxpayers’ money for years.
“It might take years for the authorities to trace such abuse and in many cases it is very unlikely that the entire amount is recouped as by law some benefits can never be halted and therefore authorities have limited options,” Dr Farrugia said.
He added that the money recouped would be used to extend certain benefits, while ensuring that genuine cases would still receive the required assistance.
In this respect, he said that patients suffering from ME, which is a chronic fatigue syndrome, and fibromyalgia, who at present do not receive any assistance, would start receiving some form of support.
He announced that last year the Benefit Fraud Investigations Department recouped €3.8 million, a record amount since 2006 when the entity was set up.
The ministry is planning to beef up its enforcement unit by recruiting more inspectors. This will also include a legal representative who would defend the department’s decision to terminate benefits whenever this is legally challenged by the aggrieved party.
Dr Farrugia also announced that in the near future those receiving non-contributory benefits such as social assistance would be allowed to go abroad without fear of losing this benefit, on condition that they notify the department.
Crackdown in figures
• Since its establishment in 2006, the Benefit Fraud Investigations Department has recouped an estimated €31.7 million.
• While each investigation cost taxpayers €7.51, the respective amount saved in each case was €100.
• In 2014 out of 1,391 on-site inspections carried out, 887 cases led to the termination or revision of social benefits thus saving €3.83 million, the highest amount ever recouped in a single year.
• In 2014, a total of 430 cases were dropped as no breach in the Social Security Act was found.
• Despite the crackdown, there are still a significant number of investigations pending a final decision.