Social welfare staff diverted cash to own accounts

Social welfare staff diverted money into their own bank accounts and approved payments to unworthy applicants, suspected fraud cases detailed by the head of the department reveal.

The information on eight cases from 2011 has been supplied to the Public Accounts Committee by Niamh O’Donoghue, the secretary general of the Department of Social Protection.

The cases of suspected fraud include one in which a staff member overpaid customers and then stole the refunds he demanded of them. Ms O’Donoghue said her department lost €35,229 because of the scam and the staff member earned €25,970.

The case was reported to the gardaí, some money has been recouped, and the staff member has been sacked. If there is any money still to be paid back, the department says it will dock it from the former worker’s pension.

In another case, customers were granted social welfare entitlements when there was no evidence that they met the eligibility requirements.

Up to €15,000 was paid out to three individuals before it was detected.

A civil service disciplinary process, which concluded last month, recommended that the employee who sanctioned the sums should be sacked. It said there was not enough evidence to substantiate allegations that the funds had been mis-appropriated. This case has been referred to the gardaí.

In another instance, a staff member diverted her relative’s jobseekers’ benefit to her own bank account without his knowledge when this person was not entitled to the payment.

“[The staff member] was also found to have issued payment in respect of a second relative’s jobseekers’ claim when he did not have an entitlement to such payment,” said Ms O’Donoghue.

The total amount diverted was €2,093. Gardaí have been notified.

Staff in one local office contacted gardaí following the theft of client refunds. This is being investigated by the department.

Another suspected fraud was discovered by the HSE internal audit unit in the community welfare division. This was spotted before this service moved to the Department of Social Protection.

A case of theft of €1,106 and documents from a safe at a community welfare office did not conclusively prove an employee was involved. Gardaí investigated the case.