Dáil hears fraud concerns connected to two companies

The Dáil has heard concerns about fraud connected to two companies who have earned €84m from returning people to work here.

The companies have been accused of “profiting” on the backs of people trying to find jobs.

Solidarity-PBP TD Paul Murphy has now called for JobPath, the scheme under which the firms work, to be scrapped. But Taoiseach Leo Varadkar strongly defended welfare and work projects and instead attacked “left-wing” politicians who, he claimed, would ruin the country if in power.

In the Dáil, Mr Murphy said: “The counterpart to that precarious employment is precarious unemployment in the JobPath machine. Some 140,000 unemployed people have been turned into opportunities for profit for private companies. In the process and without significant debate, the provision of social welfare has been partially privatised.”

He said the scheme was “demeaning, patronising and infantilising” and that the threat of having welfare cut by more than €40 hangs over people’s heads.

He said since JobPath was introduced the number of people who have had penalty rates applied had increased from 5,000 in 2015 to 16,000 last year. Furthermore, 6,500 JobPath participants have had their dole cut.

Using Dáil privilege, he also raised concerns about fraud with two companies under JobPath.

“On the other hand, €84m of public money has been paid to just two companies, SeeTec and Turas Nua. They get money each time someone signs a personal progression plan and they get paid job sustainment fees. Both SeeTec and Working Links, which is one of two companies behind Turas Nua, have been accused of fraud in the operation of similar schemes in Britain.”

He also highlighted how only 18% of those who engage in JobPath ended up in full-time employment.

Mr Varadkar said the scale of welfare fraud was about €40m a year, while unemployment had falled from a peak of 15% to 6%.

The Department of Social Protection, responding to queries, said both companies working for JobPath were subject to regular on-site inspections.

"The department acknowledged that Working Links had already said “some members of its staff in the UK incorrectly recorded employment and training placement for jobseekers”.

SeeTec was accused of fraudulent activity by ex-staff in 2013 but a parliament committee found no wrongdoing, it added.

The department said it would soon publish results of the 2017 JobPath customer satisfaction survey. “Most encouraging is the high number of clients who feel the service has improved their chances of getting a job,” a statement to the Irish Examiner added.