Replies to LegCo questions

LCQ12: CSSA fraud cases

Following is a question by the Hon Abraham Shek and a written reply by the Secretary for Health, Welfare and Food, Dr York Chow, in the Legislative Council today (May 10):

Question:

It has been reported that up to January this year, the number of Comprehensive Social Security Assistance (CSSA) fraud cases in the 2005-06 fiscal year substantially increased by almost 20% as compared to the figure in the same period of last year, and the amount involved was $40 million. The Social Welfare Department (SWD) has indicated that the increase in the number of cases is mainly attributable to the public's initiative in reporting fraud cases and the Government's enhanced publicity efforts. In this connection, will the Government inform this Council:

(a) among the 3 800-odd CSSA fraud cases handled by the authorities last year, of the respective numbers of cases disclosed through reporting by the public and cross-checking by SWD;

(b) as persons defrauding CSSA payments can be identified by SWD, upon receipt of reports of fraud cases, through data matching with other government departments and public organisations (such as the Land Registry, Companies Registry, Transport Department and Hospital Authority, etc), whether SWD will consider incorporating the data-matching mechanism into its cross-checking exercise on CSSA applicants, so as to reduce the number of fraud cases; if so, of the details; if not, the reasons for that; and

(c) whether it has assessed if SWD's manpower and experience are inadequate for investigating CSSA fraud cases, hence necessitating the secondment of police officers from the Commercial Crime Bureau of the Hong Kong Police Force to SWD to assist in its investigation work, as well as the appointment of four retired police officers as fraud investigation advisers this year; if it has, of the assessment results; if not, the reasons for that?

Reply:

Madam President,

(a) In 2005-06, the Fraud Investigation Teams (FITs) of the Social Welfare Department (SWD) have, upon investigation, substantiated 764 instead of 3 800 CSSA fraud cases.

In the previous financial year, the SWD received a total of 5 492 reports of suspected fraud cases. Among them, 4 912 were reported by the public whereas the remaining 580 involving suspected fraudulent act of applicants were referred to the FITs for in-depth investigations by the frontline staff of the Social Security Field Units.

(b) Comprehensive Social Security Assistance (CSSA) Scheme aims to help people suffering from financial hardship to meet their basic needs. On one hand, SWD needs to ensure that public resources are effectively utilised through a strict vetting process; on the other hand, the Department also need to provide appropriate and timely financial assistance to those in genuine need under the Scheme. As such, the SWD may not be able to render timely assistance to those in genuine financial hardship if it needs to first cross-check the data of the applicants with other relevant government departments before authorising CSSA payment.

Nevertheless, the SWD conducts regular data matching with other government departments and relevant organisations (including the Land Registry, Companies Registry, Transport Department, Labour Department, Immigration Department, Employees Retraining Board, The Treasury, Student Financial Assistance Agency, Hospital Authority, Correctional Services Department and Education and Manpower Bureau) to verify the accuracy of the data provided by the applicants and take appropriate follow-up actions when necessary.

In 2005-06, SWD followed up on a total of 14 239 cases after the completion of regular data matching process. Among them, 4 164 cases were found to have contained erroneous data provided by the applicants and action had to be taken to recover the overpayment from the applicants. Furthermore, a small number of suspected fraud cases had been referred to the FITs for follow-up.

(c) To step up efforts in combating CSSA fraud cases, a Police Superintendent from the Commercial Crime Bureau of the Hong Kong Police Force was seconded to the SWD as its adviser from July 2004 to March 2005. The adviser was mainly responsible for making recommendations on the prevention of fraud and abuse cases, thereby enhancing further cooperation between the SWD and the Police on the investigation and streamlining the investigation and referral procedures of suspected fraud cases. The Police Superintendent had recommended, among others, the appointment of retired police officers to capitalise on their extensive working experience in helping to improve the investigation mechanism.

Currently, there are 120 Social Security grade officers in the Special Investigation Section of the SWD specialising in the prevention and investigation of CSSA fraud and abuse cases. In 2006-07, the SWD will appoint four retired police officers at the inspectorate rank as fraud investigation advisors to assist in handling difficult cases and making further efforts to combat CSSA fraud cases.




Ends/Wednesday, May 10, 2006
Issued at HKT 12:23

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