Hong Kong lawmakers call for stricter penalties against welfare fraud

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18th January 2025 – (Hong Kong) The Hong Kong government, facing a fiscal deficit of HK$100 billion, has come under scrutiny for instances of fraud related to the Comprehensive Social Security Assistance (CSSA) scheme and the Old Age Living Allowance. According to the Labour and Welfare Bureau, as of November last year, investigations into the 2024/2025 fiscal year revealed 750 confirmed cases of CSSA fraud and 348 cases concerning public welfare payments. While these figures represent less than 0.4% of the total cases, lawmakers argue that those knowingly committing fraud must face harsher penalties to deter future abuses.

Lawmakers, including Peter Douglas Koon, chairman of the Legislative Council’s Welfare Services Committee, emphasised the need for stronger measures against repeat offenders, suggesting that without significant repercussions, fraudulent behaviour may be inadvertently encouraged. Koon drew parallels to the government’s efforts to combat abuse of public housing, noting that inadequate enforcement allows some individuals to continue exploiting resources.

Another member of the Legislative Council, Bill Tang Ka-piu, pointed out that the current system relies primarily on random checks rather than comprehensive reviews, casting doubt on its effectiveness. He highlighted the challenges in verifying overseas property ownership, which often requires specific case data rather than automatic checks, complicating the government’s ability to address fraud effectively.

Legislative Councillor Tik Chi-yuen voiced similar concerns, stating that any instances of fraud are unacceptable, especially given the scarcity of social resources. He asserted that stringent enforcement would enhance public confidence in the welfare system, which has faced criticism regarding its efficacy.

In response to fraudulent claims, authorities indicated that individuals providing false statements or concealing information to obtain benefits could face prosecution under the Theft Ordinance and lose their eligibility for assistance. While the Social Welfare Department is mandated to recover overpayments, it has not disclosed specific data regarding the total amounts involved in these cases.

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