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EDITORIAL: $32 billion in COVID payments suspect

Auditor General Karen Hogan responds to a question during a news conference in Ottawa, May 26, 2021.
Auditor General Karen Hogan responds to a question during a news conference in Ottawa, May 26, 2021. Photo by Adrian Wyld /THE CANADIAN PRESS

A report by federal auditor general Karen Hogan on the Trudeau government’s pandemic spending confirms what many Canadians already know — that the Liberals are far better at giving away our money than getting it back from people who don’t deserve it.

Hogan said that in addition to confirmed overpayments of $4.6 billion to individuals in federal pandemic-related benefits, payments of at least $27.4 billion more to individuals and companies are suspicious and require further investigation.

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That means at least $32 billion — more than 15% of the $210.7 billion in relief payments the six major government programs provided in pandemic relief to Canadians — may have been misspent.

The Canada Revenue Agency and Social Development Canada have recovered only $2.3 billion, primarily through voluntary repayments, which Hogan said isn’t good enough.

“I am concerned about the lack of rigour on post-payment verifications and collection activities,” Hogan reported, adding a “significant” amount of public money may never be recovered as a result.

  1. The landing page for the Canada Emergency Response Benefit is seen in Toronto, Monday, Aug. 10, 2020.

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“The Canada Revenue Agency and Employment and Social Development Canada need to act now to expand their post-payment verification plans to include all recipients identified as being at risk of being ineligible for benefits. Then the department and the agency need to carry out their plans and recover COVID-19 benefit amounts owed.”

The Trudeau government, however, disagreed with the auditor general’s recommendations on this issue, responding in a statement: “It would not be effective, nor in keeping with international and industry best practices to pursue 100% of all potentially ineligible claims. This approach … will be adapted as circumstances warrant.”

Hogan said if the government is planning to forgive ineligible recipients, then it should be transparent and tell Canadians why.

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Hogan reported that the $500 per week Canada Emergency Response Benefit discouraged workers earning less than that amount from returning to their jobs, preferring instead to stay on CERB for the maximum period of 28 weeks.

Finally, taxpayers have also been paying for millions of expired vaccines procured by the Trudeau government that were purchased at a cost of about $30 per dose.

Hogan did credit the Trudeau government with getting out pandemic relief to Canadians quickly, as well as procuring sufficient vaccines for Canadians through its deals with multiple drug manufacturers.