Huge rise in public tip-offs alleging welfare fraud

THERE HAS been a dramatic increase in the number of people making anonymous tip-offs to authorities over alleged welfare fraud by members of the public.

The Department of Social Protection received 12,648 reports of alleged fraud from the public last year, up from 6,400 the previous year and just over 1,000 in 2008.

Most reports last year were made anonymously through the department’s website (7,384), followed by phone calls (4,253) and letters (1,011).

The 12-fold increase in reports during the past two years has coincided with the economic decline.

For example, the average number of reports between 2005 and 2007 was 600. They began to rise suddenly in the last three months of 2008 and have continued to increase dramatically. Some observers have suggested the rising numbers reflect a changing culture in Ireland to breaches of rules, with people less prepared to tolerate fraud involving taxpayers’ money.

The department does not have precise figures on how much money has been saved through tip-offs, but €484 million was saved during 2009 through fraud and control measures. It says the introduction of a new ID card for welfare payments this year will help secure more savings.

In a statement, the department said the most frequent reports of suspected welfare fraud include working and claiming unemployment benefits; living with a partner while claiming the single-parent’s benefit; living abroad while claiming benefits; or failing to disclose income.

The full number of complaints is not reflected in the figures since others are coming directly to social welfare counter staff. The central control section of the department, based in Carrick-on-Shannon, accepts reports of possible fraud offered by members of the public in relation to all welfare payments. All reports are followed up. “Reports are accepted online, by phone or in writing. All reports are dealt with in confidence. A member of the public may give details anonymously,” it says.

Not all tip-offs contain enough information to review a welfare claim. In some instances, the information reported would not impact on a person’s welfare entitlement.

A form on the department’s website requests members of the public to provide as much detail as possible about suspected fraud, including the names, ages and employment history of those involved in alleged fraud.

For example, in the case of those working and claiming, it requests details such as the employer’s name, when the individual started working, the type of work, and the days worked if known.

Reports of suspected fraud are accepted on the internet via the department’s website (welfare.ie) and e-mail (central.control@welfare.ie) or by telephone 1890 927999, or post to Central Control Division, Shannon Lodge, Carrick-on-Shannon, Co Leitrim.

TAX EVASION  PAYMENTS TO GARDAÍ FOR INFORMATION

HUNDREDS OF gardaí and members of the public have received payments from the Revenue Commissioners for providing information relating to tax evasion in recent years.

Previously unpublished figures show that in 2008, 487 gardaí received a total of €10,000 in “garda rewards”, while €14,000 was paid to an undisclosed number of gardaí in 2009.

In addition, members of the public received significant sums of money, or “good citizen awards”, for information which led to the recovery of unpaid tax.

In 2008, eight members of the public received payments totalling €32,500. One of these received a payment in excess of €20,000; another received an award between €5,000 and €10,000; and the remaining six received payments of less than €5,000.

During 2008, significantly less was paid out, with a total of €2,350 paid to an undisclosed number of individuals.

In a statement, the Revenue Commissioners said the approval of a payment is conditional on the provision of “new or significant information which results in a substantial recovery of taxes or duties, controlled drugs or prohibited goods”.

It added: “Operational guidelines for Revenue staff are in place to ensure standards of best practice are followed in dealing with the receipt of information which usually emanates from members of the public.”

CARL O’BRIEN