Wednesday, April 01, 2015

Why people commit benefit fraud

1/ Because they can

2/ Because it's easy

3/ Because the consequences are trivial


Anne Sepuloni is a case in point, and typical.

She has effectively been given a 14-year, $20 weekly penalty on her benefit (or Super.)


The NZ Herald reports:

For defrauding the Ministry of nearly $34,000, he gave her a sentence of four and a half months' home detention.
He said other mitigating circumstance - including her clean record, early guilty plea and show of remorse - cut the starting-point sentence further to nine months' jail.
The judge then accepted the pre-sentencing report recommendation that the jail sentence be converted to home detention. Sepuloni must also do 250 hours of community work and repay $15,000 at the rate of $20 a week.

It's pathetic.

But it happens in thousands of cases. The offender remains on a benefit, supported by the taxpayer albeit it at a slightly reduced rate.

It's pathetic.

If NZ was serious about benefit crime it would bar fraudsters from eligibility. That might be the deterrence factor required.



4 comments:

gravedodger said...

How sensible Lindsay, that penalty is Laughable . How much of the 34k needs to be now invested to replace the one jug a week penalty.
Walk into WINZ looking simple then walk out muttering they are simple, eh.

Anonymous said...

$20 per week for three years goes nowhere near repaying the amount stolen, never mind interest. I agree with disqualification from eligibility otherwise where's the penalty?

Anonymous said...

Compare that penalty to some handed out via Mobie Health and safety and the Employment court.
Makes a mockery of people and businesses earning the cash to pay these slugs.

Lindsay Mitchell said...

Anon 1, Quite. My maths was appalling. Re-calculated.

I wonder if the repayments are inflation-adjusted? Her benefit will be.