Chris Dolmeth
[FYI request #17509 email]

20 December 2021

Tēnā koe Chris Dolmeth
On  10 November 2021,  you emailed the Ministry of Social Development (the
Ministry) requesting, under the Official Information Act 1982 (the Act), the following
information:
•  The number of applications for any COVID-19 Wage Subsidy payment by an
individual identified as being in receipt of assistance from the Ministry of
Social Development (MSD).
•  The number of investigations made into such applications to determine
entitlement.
•  The number of beneficiaries who received any COVID-19 Wage Subsidy
payment and were not entitled to receive it.
•  The number of beneficiaries who made a false application for any COVID-19
Wage Subsidy payment.
•  The total number of refunds requested from beneficiaries who were not
entitled to any COVID-19 Wage Subsidy payment, including total dollar value.
•  The total number of refunds requested from beneficiaries who made false
applications to any COVID-19 Wage Subsidy payment, including total dollar
value.
•  The total number of refunds received and total dollar value.
•  The total number of prosecutions that have commenced against a beneficiary
for making any false application for any COVID-19 Wage Subsidy payment.
For the sake of clarity, your questions will be grouped as appropriate.
•  The number of applications for any COVID-19 Wage Subsidy payment by an
individual identified as being in receipt of assistance from the Ministry of
Social Development (MSD).
As part of its post-payment reviews for the original and consolidated Wage Subsidy
Schemes which occurred during the period March 2020 to October 2020, the Ministry
matched application information against information held in relation to benefits and
entitlements paid under the Social Security Act 2018. The Ministry initially identified
approximately 21,000 clients in receipt of Jobseeker Support, 8,638 clients in receipt
of  Supported  Living  Payment,  and  4,816  clients  in  receipt  of  Sole  Parent  Support,
who were included as employees in Wage  Subsidy  applications. The Ministry also
identified approximately 4,000 self-employed applicants who were in receipt of a
main benefit.

Regular matching with the benefit system occurred from 10 June 2020 with the
introduction of the Wage Subsidy Extension and Wage Subsidy Resurgence
payments. This matching identified a further 24,700 clients named as employees in
wage subsidy applications. Approximately 4,700 self-employed applicants for the
Wage Subsidy Extension, and approximately 1,300 self-employed applicants for the
Wage  Subsidy  Resurgence  also  indicated  they  were  receiving  either  Jobseeker
Support, Supported Living Payment or Sole Parent Support as part of their Wage
Subsidy application.
Out of those that were matched, the Ministry prioritised reviewing the entitlement of
those employees that were identified as full-time  workers  by  their  employers  and
had full time work obligations for Job Seeker Support. As a result of those reviews
(including follow up directly with clients), in the majority of cases there was no
change to a client’s entitlement, in some the additional income from employment
was added to a client’s record and in some cases a debt was created.
Clients may be able to receive a wage subsidy and retain entitlement to a full or
partial benefit, and a client’s benefit can be adjusted depending on the amount of
income they earn. Client obligations by benefit type can be found on the Work and
Income website at  the  following  link:  www.workandincome.govt.nz/on-a-benefit/
obligations/index.html.
•  The number of investigations made into such applications to determine
entitlement.
•  The number of beneficiaries who received any COVID-19 Wage Subsidy
payment and were not entitled to receive it.
•  The number of beneficiaries who made a false application for any COVID-19
Wage Subsidy payment.
•  The total number of refunds requested from beneficiaries who were not
entitled to any COVID-19 Wage Subsidy payment, including total dollar value.
•  The total number of refunds requested from beneficiaries who made false
applications to any COVID-19 Wage Subsidy payment, including total dollar
value.

Allegations, including internal file suspicions, relating to someone receiving both a
benefit and a Wage Subsidy would be treated as an allegation of benefit fraud.
The Ministry is unable to report on how many benefit fraud investigations may have
included  Wage  Subsidy  allegations,  integrity  checks,  investigations,  or  refund
requests which included benefit recipients. This information would be held on
individual client files, and in order to provide you with this information, Ministry staff
would have to manually review thousands of files. As such,  I refuse your request
under section 18(f) of the Act. The greater public interest is in the effective and
efficient administration of the public service.
I have considered whether the Ministry would be able to respond to your request
given extra time, or the ability to charge for the information requested.  I have
concluded that, in either case, the Ministry’s ability to undertake its work would still
be prejudiced.

Page 2 of 3

•  The total number of refunds received and total dollar value.

Wage  Subsidy  repayments  received  by  the  Ministry  are  reported  on  each  week  on
the Ministry’s website at www.msd.govt.nz/about-msd-and-our-work/publications-
resources/statistics/weekly-reporting/index.html.  As such, your request for this
information is refused under section 18(d) of the Act on the basis that the
information requested is publicly available.
•  The total number of prosecutions that have commenced against a beneficiary
for making any false application for any COVID-19 Wage Subsidy payment.

I can advise that, to date, the Ministry has filed separate criminal charges against
two people in relation to multiple Wage Subsidy applications. These charges were
filed  in  the  Auckland  District  Court  on  29  September  2021.  Details  of  these
proceedings  are withheld under  section  6(c)  of  the  Act  where  making  that
information  available  would  be  likely  to  prejudice  the  maintenance  of  the  law,
including the prevention, investigation and detection of offences.
The principles and purposes of the Official Information Act 1982 under which you
made your request are:
•  to  create  greater  openness  and  transparency  about  the  plans,  work  and
activities of the Government,
•  to  increase  the  ability  of  the  public  to  participate  in  the  making  and
administration of our laws and policies and
•  to lead to greater accountability in the conduct of public affairs.
This Ministry fully supports those principles and purposes. The Ministry therefore
intends to make the information contained in this letter and any attached documents
available to the wider public. The Ministry will do this by publishing this letter on the
Ministry’s website. Your personal details will be deleted, and the Ministry will not
publish any information that would identify you as the person who requested the
information.
If you wish to discuss this response with us, please feel free to contact
[MSD request email].
If  you  are  not  satisfied  with  this  response,  you  have  the  right  to  seek  an
investigation  and  review  by  the  Ombudsman.  Information  about  how  to  make  a
complaint is available at www.ombudsman.parliament.nz or 0800 802 602.
Ngā mihi nui
George Van Ooyen
Group General Manager
Client Service Support
Page 3 of 3

Document Outline