Benefit Fraud Investigation Expands: Former Labour MP And Others Under Scrutiny
The Maltese police are intensifying their investigation into a large-scale benefit fraud that has thus far identified 160 abuse cases. Former Labour MP Silvio Grixti is among the implicated, according to sources who spoke with MaltaToday.
Authorities have expanded their investigations into areas like Tarxien, Żejtun, and Birżebbuġa. Notably, 28% of the identified cases are concentrated within these three locales, with Tarxien having 16 cases, Żejtun with 15, and Birżebbuġa registering 14.
Grixti’s alleged involvement in this fraudulent activity was exposed in 2022. Some abuse instances occurred after this revelation, making investigators believe that the racket possibly continued without Grixti’s direct involvement. The exact nature of the connection between Grixti and other implicated individuals remains uncertain.
In a twist, apart from Grixti, another individual from Żejtun, notorious for his history with forgery and fraud, has been interrogated. “This person might have partaken in forging medical documents, presumably for financial gains,” shared insider sources.
Evidence obtained from Grixti’s laptop led to the identification of more than 200 patients potentially benefiting from the fraud. Approximately 60% of these individuals had been given the severe disability assistance, with the rest obtaining different social payments unrelated to the alleged scheme.
Grixti, initially a family doctor, was elected to parliament on the Labour ticket from the 3rd District in 2017. His political journey took a downturn when he was implicated in a scandal involving a civil servant’s forged medical certificate in December 2021, leading to his resignation.
Benefit fraud seemed to be particularly predominant in Labour-leaning districts. Out of the identified 160 cases, 68% emerged from these districts.
The police believe the number of identified fraud cases could potentially double as the investigation progresses.
The amount of money involved is also significant. From the 160 cases that MaltaToday identified, payments started in 149 cases, summing up to a total of €2.3 million. All of these payments have since been halted, and efforts to recover the money are underway.
The fraud rate noticeably spiked during the COVID-19 pandemic in 2020. The remote medical board assessments during the pandemic meant doctors didn’t have the original certificates, which could have made it easier for forgeries to occur. Most of the identified abuse cases involve individuals facing financial hardships due to disability or medical conditions.
Several fraudulent medical certificates cited severe medical conditions like epilepsy, hydrocephalus, ALS, and muscular dystrophy.
However, not all applications for the severe disability assistance were approved. From 2019 to 2022, 2,738 individuals applied, but only 39% were accepted. In the same period, internal investigations detected benefit abuses leading to a savings of €17.6 million by stopping benefits in 4,293 cases.
The ministry’s compliance division continually conducts random checks to ensure no benefit abuse. A spokesperson from the ministry highlighted the discovery of certain identical medical documents, suggesting a standardized forged document. Though reluctant to comment on individual cases, the spokesperson assured the ministry’s full cooperation with the ongoing police investigations.
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