David Stanton (Cork East, Fine Gael)
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Question 283: To ask the Minister for Social and Family Affairs the efforts he has made to combat welfare fraud; if his attention has been drawn to the extent of the problem and its cost to the Exchequer; and if he will make a statement on the matter. [27713/05]

David Stanton (Cork East, Fine Gael)
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Question 285: To ask the Minister for Social and Family Affairs the efforts he has made or will make to combat welfare fraud; and if he will make a statement on the matter. [27715/05]

Séamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 283 and 285 together.

The prevention of fraud and abuse of the social welfare system is an integral part of the day-to-day work of my Department. A key objective of my Department's control strategy is to ensure that we pay the right person the right amount of money at the right time. A four-pronged approach has been adopted by the Department to meet this objective, namely prevention of fraud and error at the initial claim stage, early detection through effective review of claims in payment, measures to deter fraud and the pursuit and recovery of overpayments. Systematic risk analysis is a key element of the control strategy. This entails the identification, by scheme managers, of areas of high risk of fraud and abuse in the schemes for which they are responsible and putting in place appropriate measures to address them in a systematic way. The purpose of this approach is to ensure review activity is targeted in the most effective manner.

During 2004 and 2005 my Department undertook a number of specific control initiatives in its regions throughout the country, the outcomes of which are being evaluated with a view to expanding successful initiatives to other areas. These initiatives will feed into the process of refocusing control activity to those areas and types of cases which present the highest risk of fraud and error. My Department also includes surveys of the levels of fraud and error as part of its control strategy to identify the types of claims, which should be prioritised for review purposes. As an integral part of its control strategy, my Department is committed to undertaking at least two surveys annually to establish the levels of fraud and error arising. Controls are also exercised at the initial claim stage and at subsequent stages during the claim life cycle. Claims are reviewed on a regular and targeted basis. More than 600 staff members at local, regional and national level are engaged on a full or part-time basis on work related to the control of fraud and abuse of the social welfare system.

During 2004 306,000 reviews of entitlement were carried out by staff in my Department. The records of 6,600 employers were inspected to ensure compliance with the Department's regulations and in particular to prevent and detect abuses of the system. In 2005, to the end of August, more than 211,000 claim reviews have been undertaken and 3,600 employers inspected. In 2004, as a result of control activity, my Department realised total savings of €386 million in combating fraud and abuse. In 2005, to the end of August, savings of more than €265 million have also been realised. The total amount of overpayments set up as a result of detected fraud or suspected fraud during 2004 was €18.63 million. In 2005, to the end of August, overpayments totalling €12.26 million were set up as a result of detected or suspected fraud.

The prosecution of offenders is a key element in my Department's overall control approach. My Department's policy is to consider all cases of fraud for prosecution. During 2004, 503 cases were referred to the State solicitor's office to initiate prosecution proceedings. A total of 284 cases were finalised in court, of which ten defendants were served with prison sentences, 26 received suspended sentences, 159 were fined and 44 received the benefit of the Probation Act. The remaining penalties included cases which received community service or were bound to the peace. In 2005 to the end of August, 287 cases have been submitted for initiation of court proceedings. I am committed to ensuring social welfare payments are available to those who are entitled to them. I am also determined to ensure abuse of the system is prevented and is dealt with effectively when detected. In this regard the control programme of my Department is carefully monitored and the various measures are continually refined to ensure they remain effective.

David Stanton (Cork East, Fine Gael)
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Question 284: To ask the Minister for Social and Family Affairs his views on the findings of the Comptroller and Auditor General that approximately 10,000 bogus social security numbers exist; and if he will make a statement on the matter. [27714/05]

David Stanton (Cork East, Fine Gael)
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Question 287: To ask the Minister for Social and Family Affairs the way in which he will correct the faults of the computerised PPS number checking system as outlined in the report of the Comptroller and Auditor General; and if he will make a statement on the matter. [27717/05]

Séamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 284 and 287 together.

The report of the Comptroller and Auditor General refers to 10,000 invalid PPS numbers rather than bogus numbers. Ongoing work to improve the integrity of the data on the Department's central records system database initially uncovered these invalid numbers. These PPS numbers were mainly old numbers on the database and were incorrectly technically formatted. These have since been corrected.

My Department is acutely aware of the importance of the PPS number and of the data on its central records system. Since taking over responsibility in 2000 for the issue of PPS numbers, my Department has put in place a range of measures to strengthen the registration process through improved procedures and controls including face-to-face interviews at local and branch offices. Further improvements in identity fraud controls will be developed having regard to developments in the area of identity management policies generally. The specific issues raised in the report are being addressed and will be considered by the Committee of Public Accounts in the context of its examination of the report.