Mistaken payments of $2,000 monthly pandemic benefit cheques cost the federal government at least $5.3 billion, records show. It's the largest sum disclosed to date under the Canada Emergency Response Benefit program..“There is no doubt that when creating a program as quickly as we did, there is going to be some abuse of that program,” Liberal MP Kevin Lamoureux (Winnipeg North), parliamentary secretary to the Government House Leader, earlier told the House of Commons..“We are very much aware,” he added..According to Blacklock's Reporter, cabinet in an Inquiry Of Ministry tabled in the House said it knew of at least 2.5 million people who successfully applied for benefits they did not deserve. The figure represented 28% of the 8.9 million who received payments..Parliament passed the Canada Emergency Response Benefit Act on March 25, 2020 just two weeks after the World Health Organization declared a global pandemic. The Act paid $2,000 a month to jobless tax filers..Parliament budgeted the program at $24 billion. Costs instead totaled $81.6 billion, including the $5.3 billion know to be paid to undeserving applicants. The Inquiry said ineligible recipients included 1,890,059 people already receiving federal benefits like Employment Insurance. Another 611,080 were disqualified by the Canada Revenue Agency for reasons such as failing to previously file taxes..Canadians in Privy Council Office polling said cheating was commonplace under the program..“Several expressed frustration at what they felt to be lack of oversight related to the distribution of financial supports through the pandemic, believing ineligible individuals had been able to receive financial assistance,” said a May 16 report..The Revenue Agency said it was flooded with tips by informants naming suspected cheaters..“This past year the National Leads Centre processed over 60,000 leads with the increase being attributable to COVID-19 benefits,” said a March 23 report Management Of Leads. It was double the normal volume..Suspected fraud was reported by banks within weeks of the program’s launch, the Commons finance committee was told last Dec. 8..“We started to receive suspicious transaction reports,” testified Barry MacKillop, deputy director of the Financial Transactions and Reports Analysis Centre..“It was really for the most part our large financial institutions that were reporting on a number of Canada Emergency Response Benefits that were coming in with certain clients and they would see clients receiving benefits under different names and so forth,” said McKillop..“Probably the most typical one you would see is one person who has a bank account and is receiving multiple Canada Emergency Response Benefit payments under different names going into his or her bank account, then that money would be quickly dispersed either through money transfers to someone else, to themselves in another institution, or the money would be taken out almost immediately through cash withdrawals at ATMs for example,” said MacKillop.
Mistaken payments of $2,000 monthly pandemic benefit cheques cost the federal government at least $5.3 billion, records show. It's the largest sum disclosed to date under the Canada Emergency Response Benefit program..“There is no doubt that when creating a program as quickly as we did, there is going to be some abuse of that program,” Liberal MP Kevin Lamoureux (Winnipeg North), parliamentary secretary to the Government House Leader, earlier told the House of Commons..“We are very much aware,” he added..According to Blacklock's Reporter, cabinet in an Inquiry Of Ministry tabled in the House said it knew of at least 2.5 million people who successfully applied for benefits they did not deserve. The figure represented 28% of the 8.9 million who received payments..Parliament passed the Canada Emergency Response Benefit Act on March 25, 2020 just two weeks after the World Health Organization declared a global pandemic. The Act paid $2,000 a month to jobless tax filers..Parliament budgeted the program at $24 billion. Costs instead totaled $81.6 billion, including the $5.3 billion know to be paid to undeserving applicants. The Inquiry said ineligible recipients included 1,890,059 people already receiving federal benefits like Employment Insurance. Another 611,080 were disqualified by the Canada Revenue Agency for reasons such as failing to previously file taxes..Canadians in Privy Council Office polling said cheating was commonplace under the program..“Several expressed frustration at what they felt to be lack of oversight related to the distribution of financial supports through the pandemic, believing ineligible individuals had been able to receive financial assistance,” said a May 16 report..The Revenue Agency said it was flooded with tips by informants naming suspected cheaters..“This past year the National Leads Centre processed over 60,000 leads with the increase being attributable to COVID-19 benefits,” said a March 23 report Management Of Leads. It was double the normal volume..Suspected fraud was reported by banks within weeks of the program’s launch, the Commons finance committee was told last Dec. 8..“We started to receive suspicious transaction reports,” testified Barry MacKillop, deputy director of the Financial Transactions and Reports Analysis Centre..“It was really for the most part our large financial institutions that were reporting on a number of Canada Emergency Response Benefits that were coming in with certain clients and they would see clients receiving benefits under different names and so forth,” said McKillop..“Probably the most typical one you would see is one person who has a bank account and is receiving multiple Canada Emergency Response Benefit payments under different names going into his or her bank account, then that money would be quickly dispersed either through money transfers to someone else, to themselves in another institution, or the money would be taken out almost immediately through cash withdrawals at ATMs for example,” said MacKillop.
