Computer-Endorsed Benefit Fraud
The fact that the Work and Income Service's computer system cannot tell whether or not a benefit debt is the result of
fraud makes Government claims of effective fraud prevention implausible, ACT New Zealand Social Welfare Spokesman Dr
Muriel Newman said today.
"Answers to my parliamentary questions show that benefit debt is held on two computers. The Associate Minister of
Social Services and Employment Rick Barker admits that `as debt cycles between these two systems the codes identifying
the debt as benefit fraud are lost, consequently any subsequent recovery cannot be identified as a benefit fraud debt
recovery'," Dr Newman said.
"Maintaining a system that does not identify benefit fraud recovery is ludicrous, especially for a Government that
claims to be trying to prevent benefit fraud. It simply provides the Social Services and Employment Minister Steve
Maharey with a back door when called upon to prove his claims of increased benefit fraud prevention.
"The continued use of this computer system is simply one link in a chain of decisions made by a Government that has
gone soft on fraud. The wooing of the Beneficiaries Unions, the new wiping of debt provisions, making the DPB more
accessible and shackling the Benefit Control Unit were all decisions made by a Minister who clearly has no intention of
stamping out benefit fraud. Benefit fraud undermines the integrity of the entire benefit system. What we need is a zero
tolerance approach to benefit fraud so that those cheating the system know that chance of being caught and prosecuted
are high.
"Condoning the use of such a computer system is the move of a Minister who wishes to escape accountability for the
recovery of established benefit fraud debt at a time when accountability is paramount. Modification of this system
should be made an urgent priority for this Government, so that taxpayers can see that benefit fraud debt is being
recovered at an effective level," said Dr Newman.