Audit Reveals Millions in Welfare Payments to Ineligible Beneficiaries

Audit Office finds major failures in social benefits controls, with hundreds wrongly receiving disability allowances and millions paid without proper checks.

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Significant weaknesses in the social benefits system are documented by the Audit Office, which reveals a pattern of delays, inadequate controls and payments made without sufficient documentation, resulting in millions of euros being paid to non‑eligible recipients.

A special report on the Deputy Ministry of Social Welfare highlights cases in which benefits were paid without proper assessment, without updated information or even without meeting basic eligibility requirements, raising serious questions about how the system operates.

Total spending on social benefits amounted to €412 million in 2022 and €410.7 million in 2023, with nearly €200 million per year allocated to the Guaranteed Minimum Income (GMI).

The report identifies serious gaps in control mechanisms, meaning authorities cannot ensure that benefits reach those who are genuinely entitled to them.

Benefits paid without checks or documentation

The report records cases in which benefits were granted without final application assessments, without updated supporting documents, without verification of residence or income. In several instances, provisional approvals were extended for years without a final evaluation. Notably, payments continued for more than three years under a “pre‑approval” status, even though the statutory timeframe is three months.

Among the findings are cases that underscore major control failures:

  • €231,907 paid to a third‑country national with expired residence permits
  • €63,281 paid to an EU citizen who never submitted the required documentation
  • €35,495 paid to an individual declared disabled without examination by a medical board
  • €19,391 overpaid due to continued benefits for a child who had died

These cases point to failures in basic cross‑checks and verification.

629 disability cases not confirmed

Particularly concerning are the findings related to disability benefits. Out of thousands of cases reviewed, 629 individuals receiving disability allowances were ultimately not certified as disabled, leading to the termination of their benefits.

At the same time:

  • 1,182 cases were still pending referral for disability certification
  • 780 cases remained pending for assessment

Despite this, benefit payments continued as normal.

Income figures do not add up

In several cases, the report identifies serious discrepancies between declared income and actual expenditure.

Indicatively, one single‑parent household recorded an increase in assets of €667,341 within a single year, without adequate investigation into the source of the funds.

At the same time, some beneficiaries showed levels of spending inconsistent with their declared income, suggesting the possible existence of undeclared resources.

Delays and institutional gaps

The report also documents significant delays:

  • up to nine months to examine care‑related applications
  • a 10‑year delay in establishing a legal framework for home care services

Meanwhile, the absence of unified information systems and cross‑checking capabilities undermines the effectiveness of controls and increases the risk of errors and abuse.

According to the Audit Office, these weaknesses affect not only transparency and sound management of public funds, but also the very philosophy of the system itself. Instead of functioning as a social safety net, benefits in many cases end up reinforcing dependency, without supporting meaningful integration into the labour market.

 

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