Junts and ERC governments gave €167M in aid irregularly

More problems for ERC and Junts. Amid the corruption scandals affecting the Department of Social Rights during their governments, the Audit Office has just published a new report. The oversight body under Parliament has expanded the DGAIA report and once again reveals concerning irregularities.

According to the Audit Office report, the Department of Social Rights acknowledges the improper payment of €167.5 million in social benefits. The payments were made between 2016 and 2024. Therefore, they cover the governments of Carles Puigdemont, Quim Torra, and Pere Aragonès.

Since January 2016, the Department of Social Rights was controlled by ERC, which is the most affected. The case also shows the failure of the separatist management and severely damages the image of ERC and Junts.

What the new report says

The Audit Office has expanded the report published in March 2024 on irregularities in the contracting of child reception services. This new report focuses on irregularities in the granting of social aid to vulnerable groups:

• A significant volume of improper payments has been identified in the 2016-2024 period. The Audit Office estimates that improper payments amount to €167.56 million, of which €155.97 million are in the process of being claimed.
• The improper payments are mainly due to a lack of control and oversight in the management of benefits. The lack of verification of requirements to grant aid and the absence of a rigorous control system caused this imbalance.
• A significant portion of these improper payments has expired, especially those dating from between 2017 and 2020. This situation reflects a lack of follow-up and efficient management in the recovery of funds.
• The existence of these improper payments compromises the efficiency and economy of public management. In addition, some improper payments result from incompatibilities between benefits, which worsens the situation.
• An improvement in control and monitoring mechanisms is recommended to prevent the granting of benefits to recipients who do not meet the requirements. The implementation of an automated data verification system and the integration of databases are essential to improve the accuracy and efficiency of the process.

The report also highlights a risk of conflict of interest in the management of some benefits outsourced to nonprofit entities. These entities, such as foundations, associations, and private cooperatives, are responsible for the management and oversight of various benefits, including those intended for former foster youth.

The Audit Office has observed that an adequate supervision and audit system has not been implemented. This may affect impartiality and transparency in the allocation of resources and in decision-making regarding aid recipients.

Nonprofit entities receive public funding from DDS and other departments of the Generalitat, as well as from local entities. However, an adequate framework of responsibility and internal control has not been established in these organizations, which could compromise the proper use of public funds.

The lack of a framework of regularity and transparency in the management of collaborating nonprofit entities has raised doubts about the proper administration of public resources. Internal audits are insufficient and do not guarantee that funds are managed properly. This could lead to the misuse of resources allocated to help the most vulnerable.

Aid didn't reach those who needed it

The Audit Office not only points out the improper payment of aid, but also confirms that it didn't reach the people who truly needed it. There was no transparency or effective control mechanisms.

Among the irregularly offered aid, the most notable are €70.6 million in dependency, €43 million in non-contributory pensions, €36 million in guaranteed income, and €14 million in supplements to non-contributory pensions.

In short, according to the report, aid didn't reach those who needed it and was also granted through irregular and non-transparent procedures. The report also warns that the amount of improper payments could even exceed €167 million. For example, 32,000 guaranteed income files still need to be analyzed.