The Department of Social, Community and Family Affairs paid out £10.7 million on fraudulent or suspected fraudulent welfare claims last year, and over 240 cases were forwarded to the Chief State Solicitor's Office for prosecution.
But a breakdown of the 117 prosecutions for illegally obtaining benefits/assistance and 43 employer offences which came before the courts during the year shows that only nine received prison sentences, according to the report.
There were 14,193 fraud or suspect fraud claims for social assistance and social insurance last year. The amount involved was £3.8 million lower than last year, but the difference is principally due to a change in the Department's classifications, with officials no longer categorising over payments to deceased non-contributory old-age pensioners as fraud or suspected fraud, the Comptroller and Auditor General said.
Social assistance payments represented the bulk of the fraudulent or suspected fraudulent payments, accounting for £8.54 million. Of this, £6.93 million was paid out in unemployment assistance.
Fraudulent or suspected fraudulent claims made up almost half of all overpayments of welfare entitlements. Total overpayments rose last year to £22.22 million, compared to £20.78 million in 1997.
Unemployment assistance was the largest category of overpayment (£8.02 million), followed by non-contributory old-age and blind pensions (£6.22 million).
Cases involving abuse of the system were scrutinised with a view to taking legal proceedings, Mr Purcell said. Prosecutions were taken against employers who failed to carry out their statutory obligations and persons who defrauded the social welfare payments system.
Civil proceedings were taken to facilitate the recovery of scheme overpayments or the collection of PRSI arrears. Such cases were contemplated only where it had been established that the debtor had sufficient means to discharge the debt.