Wage Subsidy Articles

Ministry of Social Development Office in Auckland

Summary of ministry of social development wage subsidy failures

Its failure to clarify or include in the Declaration important objectives, requirements and conditions. Its failure to adopt established beneficiary investigation and prosecution processes and, consequently, to use lax processes that rarely resulted in a prosecution. Its reliance on phone calls by staff inexperienced in business and accounting processes. Its avoidance of requesting evidence that […]

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Advice on potential waste and fraud

(Refer to TREASURY OIA RESPONSE FEBRUARY 2021) ADVICE TO MINISTER OF FINANCE  21 March 2020 REGARDING REMOVING CAP OF $150,000 Description: This paper proposes options for Cabinet to: Remove the cap of the existing Covid-19 wage subsidy scheme to increase the coverage of the scheme to more employees in larger firms. Treasury supports the expansion

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Declaration rules inadequate

The wage subsidies we are mainly concerned about are the main wage subsidy and the extension wage subsidy. Subsequent wage subsidies made some changes to the Declaration that were an improvement and are evidence of the problems with the first two wage subsidies. The Declaration failed to include the main wage subsidy objective of Ministers

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Overpayments ignored

In 2020 the MSD paid out almost $14,000 million of wage subsidies very quickly and there was not time to do more than check a small number of the over 750,000 applications. The wage subsidy was paid for 12,20 or 22 weeks but the vast majority of businesses were only closed for 5 or 7

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Audits only desk checks and conversations

As at 4 February 2022, MSD has conducted 3,074 pre-payment checks of applications involving more than 80 employees, 4,026 pre-payment checks on integrity exceptions, 3,789 random post-payment checks, and 3,906 targeted post payment checks. COMMENT: Compare with 750,000 recipients and about 1.2m applications. Auditor-General’s report on management of the wage subsidy.   May 2021 Audits of applications, carried

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A sign on a door saying Temporarily closed due to Covid 19

Official and business data ignored

Auditor-General’s report on management of the wage subsidy.       May 2021 4.80 Inland Revenue’s work has also involved looking at whether some applicants GST on taxable supplies (the supplies that a business uses and claims back the GST on when it purchased those supplies) had reduced for a relevant period. Analysis of this information might help

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