***********************
Following is a written reply by the Secretary for Labour and Welfare, Mr Matthew Cheung Kin-chung, to a question by the Hon Wong Ting-kwong on the Comprehensive Social Security Assistance fraud cases in the Legislative Council today (April 16):
Question:
It has been reported that in 2005-2006, the number of Comprehensive Social Security Assistance (¡§CSSA¡¨) fraud cases substantiated by the Social Welfare Department (¡§SWD¡¨) amounted to 764, involving an amount of over $47 million. In 2006-2007, there were 896 such cases, involving an amount of over $50 million. As at February this year, there were 960 such cases in 2007-2008, involving an amount of $45.4 million. There is an upward trend as far as the numbers of cases are concerned. In this connection, will the Government inform this Council:
(a) whether it has explored the causes of the rising number of CSSA fraud cases and how the persons involved in the above cases used the CSSA payments obtained by fraud;
(b) of the heaviest penalty imposed on the persons convicted of defrauding the Government of CSSA payments;
(c) how the authorities handle the problem of increasing CSSA fraud cases, and whether they have explored more effective preventive measures; if so, of the details; if not, the reasons for that; and
(d) given that SWD has specially appointed four former investigation officers of the Commercial Crime Bureau of the Police Force and Independent Commission Against Corruption as investigation advisers to investigate CSSA fraud cases, whether SWD has assessed the effectiveness of their work and whether they can cope with the incessantly increasing CSSA fraud cases; if such an assessment has been made, of the outcome?
Reply:
Madam President,
The Comprehensive Social Security Assistance (CSSA) Scheme provides a safety net for those who cannot support themselves financially. It is non-contributory but means-tested. The Social Welfare Department (SWD) reckons that those in genuine need should apply for CSSA to meet their basic needs. In the meantime, SWD has made every effort to guard against fraud and abuse of CSSA.
My replies to the specific questions are set out below:
(a) The increase in the number of substantiated CSSA fraud cases in recent years is partly due to greater public awareness, which leads to an increase in the reporting of suspected CSSA fraud cases to SWD. SWD conducts investigations with the information provided by members of the public. In addition, SWD has strengthened the training for frontline staff to enhance their alertness to refer any suspected case immediately to the Fraud Investigation Teams (FITs) for in-depth investigation.
The CSSA recipients are free to spend the CSSA payments disbursed to them. We do not have information on how the recipients used the CSSA payments which could have been obtained by fraud.
(b) From 2005-06 to 2007-08 (as at the end of February 2008), the heaviest penalty imposed on persons convicted of CSSA fraud cases was 18 months¡¦imprisonment.
(c) To ensure the integrity of the social security system, SWD strives to enhance service efficiency and effectiveness in preventing and combating CSSA frauds and abuses.
In handling CSSA applications, SWD staff interview the applicants and pay home visits in order to verify the data provided by the applicants and their family members. They cross-check the data with the employers (including previous employers) or landlords of the applicants and their family members where necessary. Regular reviews are conducted on approved cases to ensure the continued eligibility of the recipients. In addition, data matching processes with other Government departments and relevant organisations are regularly conducted to cross-check the information provided by the applicants and their family members.
SWD has established the Special Investigation Section (SIS) for the prevention and investigation of CSSA fraud and abuse cases. Upon receiving reports from the public or referrals from frontline staff, the FITs under the SIS conduct in-depth investigation into the suspected fraud cases. To deter CSSA fraud, substantiated fraud cases are submitted to the Internal Committee on Fraud Cases for consideration on whether or not to refer them to the police for follow-up action. The Data-matching Team and Target Investigation Team of the SIS conduct data matching with other Government Departments and organisations, and review approved cases on a random basis.
To facilitate members of the public to report on suspected fraud cases, SWD provides the ¡§Report Fraud Hotline¡¨ and ¡§Information Form on Fraudulent Claims for CSSA¡¨. Anti-fraud panels are also installed at the reception and waiting areas of the social security field units in all districts to provide updated information on the number of fraud cases and penalties on convicted cases. This measure aims to serve as a deterrent and remind recipients to make honest reports on their circumstances and beware of the serious consequences of cheating on CSSA payment.
(d) SWD has appointed retired officers from the disciplined forces as Fraud Investigation Advisers. Apart from taking part in investigation work, they pass on their investigation and law enforcement experience to FITs of SWD. They are making an important contribution in strengthening FITs¡¦ skills in investigation, enhancing their effectiveness in the collection of evidence and speeding up the investigation process of fraud cases.
With the assistance of the Fraud Investigation Advisers, SWD is able to cope with the increasing number of CSSA fraud cases more effectively and combat CSSA frauds.
Ends/Wednesday, April 16, 2008
Issued at HKT 14:28
NNNN
