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Press Release
Illegal receipt of personnel expenses recorded highest among subsidy fraud cases
- Date2016-12-14
- Hit1,499
The ACRC announced that it had received 85 reports about fraudulently claimed government subsidies by submitting false expense statements or making a false claim of personnel expenses, during a special reporting period from September 1 to November 30.
The sector where most subsidy frauds occurred was the health and welfare sector, recording 32 cases (37.6%), followed by 22 cases of industry and energy (25.9%), 15 cases of labor (17.6%), 6 cases of agriculture and livestock products (7.1%), and 5 construction and transportation cases (5.9%).
As for the type of fraudulent claims, the false registration of employees most frequently took place with 29 cases (34.1%). There were 25 cases of falsification of expense statements, including a false tax invoice (29.4%), 12 cases of falsification of eligibility for subsidies (14.1%), 9 cases of using subsides for other purposes (10.6%), 8 cases of hiding income when applying for various benefits including unemployment benefits (10.0%), and 1 case of bloated construction or equipment costs (1.2%).
By the type of areas prone to subsidy fraud, technology research and development ranked first with 22 cases (25.9%), followed by 8 cases regarding childcare facilities and facilities that provide basic living conditions (9.4%), 7 cases of social welfare facilities (8.2%), 6 cases of unemployment benefits and farming subsidies (7.1%), 5 cases regarding social enterprises and oil subsides (5.9%), 4 cases of employment subsidies (4.7%), 3 cases regarding healthcare benefits (3.5%) and 3 cases on supporting services for persons with disabilities (3.5%).
The ACRC will check subsidy fraud reports it received, and will refer any suspicious case to investigative agencies such as the prosecutors' office, the police, and the Board of Audit and Inspection. A financial reward up to KRW 30 billion and award money up to KRW 200 million will be paid to the reporting person, depending on the amount of retrieved subsidies.
The ACRC receives reports about illegal receipt of government subsides over various areas, including welfare benefits, all year round. In addition, in order to prevent the leakage of public funds, the Commission has been making effort to legislate the Act on the Prevention of False Claims of Public Funds and the Restitution of Improper Benefits. The proposed Act stipulates the imposition of punitive damages as much as five times the redemption money on intentional and habitual violators and the revelation of the list of claimants who make excessive false claims.
The sector where most subsidy frauds occurred was the health and welfare sector, recording 32 cases (37.6%), followed by 22 cases of industry and energy (25.9%), 15 cases of labor (17.6%), 6 cases of agriculture and livestock products (7.1%), and 5 construction and transportation cases (5.9%).
As for the type of fraudulent claims, the false registration of employees most frequently took place with 29 cases (34.1%). There were 25 cases of falsification of expense statements, including a false tax invoice (29.4%), 12 cases of falsification of eligibility for subsidies (14.1%), 9 cases of using subsides for other purposes (10.6%), 8 cases of hiding income when applying for various benefits including unemployment benefits (10.0%), and 1 case of bloated construction or equipment costs (1.2%).
By the type of areas prone to subsidy fraud, technology research and development ranked first with 22 cases (25.9%), followed by 8 cases regarding childcare facilities and facilities that provide basic living conditions (9.4%), 7 cases of social welfare facilities (8.2%), 6 cases of unemployment benefits and farming subsidies (7.1%), 5 cases regarding social enterprises and oil subsides (5.9%), 4 cases of employment subsidies (4.7%), 3 cases regarding healthcare benefits (3.5%) and 3 cases on supporting services for persons with disabilities (3.5%).
The ACRC will check subsidy fraud reports it received, and will refer any suspicious case to investigative agencies such as the prosecutors' office, the police, and the Board of Audit and Inspection. A financial reward up to KRW 30 billion and award money up to KRW 200 million will be paid to the reporting person, depending on the amount of retrieved subsidies.
The ACRC receives reports about illegal receipt of government subsides over various areas, including welfare benefits, all year round. In addition, in order to prevent the leakage of public funds, the Commission has been making effort to legislate the Act on the Prevention of False Claims of Public Funds and the Restitution of Improper Benefits. The proposed Act stipulates the imposition of punitive damages as much as five times the redemption money on intentional and habitual violators and the revelation of the list of claimants who make excessive false claims.
