Social Development cuts $182 million from budget after fraud uncovered

THE budgetary allocation of $5,413,633 for the Ministry of Social Development was accepted on Friday during the Standing Finance Committee with the Ministry announcing a reduction of $182 million for senior citizens grants, arising out of findings in the Auditor General’s report for 2021.

Defending the allocation during the committee, Minister Donna Cox said the reduction was a direct result of findings of fraud in the ministry as it relates to senior citizens grants. In 2021 the line item was allocated $4.3 billion, which was reduced to $4.1billion.

The Auditor General found that there were 1,626 instances where people received two grants for pension and food support, 305 times where pension and disability grants were issued twice and 450 instances where pension and public assistance grants were issued twice.

There were 1,093 people who received public assistance and disability grants twice and seven instances where the same person received senior citizens and pension and public assistance and disability grants.

The report also found that people as young as 27 were receiving pension payouts while some recipients used falsified identification cards to get other grants.

In responding to Chaguanas East MP Vandana Mohit, Cox said the reduction did not cover everyone who was removed from the programme. She added that currently there are 108,613 people receiving senior citizens’ grants.

“It's not just the findings of the Auditor General's report, we have been reviewing all our grants, including senior citizens grant and based on the review, we have been able to remove some persons off,” Cox said.

She added that her ministry is working closely with the Registrar General's Department to remove people off their list who would have died in a quicker timeframe.

Cox added that the $14.2 million increase in contract employment will be used to hire new workers to better tackle fraud. Some of the new units will include the Investigations Unit, Citizens' Engagement Unit and Reconciliation Unit. She added that the head investigation and compliance officer contributed significantly to the Auditor General’s report.

“At this point we have about 34 active police cases within the ministry that the police are investigating based on the findings of the investigation and compliance unit."

Cox said there is a drive to digitize and consolidate offices which accounted for the reduction in security costs and increase in fees, stationery and other supplies. She said her ministry is currently 70 per cent digitalized.

Cox said as part of the ministry’s response to various disasters, both natural and manmade, a new allocation of $2.5 million was allocated for transitional housing.