Irish Independent

Debt of the dead: deceased owe €31m

- Anne Marie Walsh

THE Department of Employment and Social Protection is owed €31m by dead people who were overpaid.

The department had a total of 9,275 debts relating to the deceased on its books at the end of last year.

The report also shows that six welfare overpaymen­ts of more than €200,000 were made – one claimant who owed €333,463 at the end of last year got a five-year jail sentence for impersonat­ion.

The portion of overpaymen­ts due to fraud or suspected fraud fell from 49pc in 2013 to 37pc last year. However, there was a rise in errors by claimants.

In the same period, the department recorded overpaymen­ts worth between €100m and €120m a year, and the level of debt rose from €420m to €482m, while welfare spending fell by 9pc.

Meanwhile, civil servants owed the State at least €4.6m at the end of 2016 because of salary overpaymen­ts that had not been returned.

Many of the payments arose because the centralise­d payroll division was only told that an employee on sick leave was on reduced or zero pay after a payroll was processed.

But, a probe by the C&AG also reveals a fundamenta­l miscalcula­tion in how absences have been recorded, which meant that some overpaymen­ts were not even on the radar.

The miscalcula­tion is happening within the Department of Public Expenditur­e (Deper).

The details are set out in a report on the management of salary overpaymen­ts by the National Shared Services Office (NSSO), a division of Deper.

Value

The NSSO delivers payroll services, mainly for civil service department­s. Of €4.6m of overpaymen­ts outstandin­g at the end of 2016, there were no plans then in place for the recovery of €2.8m. There were another 648 cases where overpaymen­ts were identified, but not quantified, with an estimated overall value of €650,000.

The report also highlights two ways in which overpaymen­ts are occurring, which were not being captured by the NSSO.

It refers to changes in payroll rules in 2011, which meant that staff on fortnightl­y salaries would have an absence calculated as one-10th of pay, but the NSSO calculated deductions at the rate of one-14th.

“As the rate of deduction using this method is less, an overpaymen­t occurs each time but it is not currently recorded,” the report states. According to the C&AG, the NSSO is in discussion­s with Deper and “clarificat­ion of the deduction rule is being sought”.

 ??  ?? Regina Doherty
Regina Doherty

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