Social Affairs Minister Rejects Calls To Resign Amid Benefit Fraud Scheme Allegations

Social Policy Minister Michael Falzon remains steadfast in his position, rejecting calls for resignation following the recent news of a disability benefits fraud that has sent ripples through Malta’s political landscape.

Earlier this month, Times of Malta reported that former Labour MP Silvio Grixti was implicated in a racket aiding hundreds in obtaining disability benefits under false pretenses. The scheme reportedly involved the submission of fake medical certificates, ensuring claimants received monthly payouts, averaging €450, for severe disabilities they did not have.

However, fingers aren’t only pointing at Grixti. Some beneficiaries told police that they got these false certificates from individuals associated with the Labour party, sometimes in exchange for votes or financial kickbacks.

Although the racket has been ongoing for several years, there is no concrete evidence linking Minister Falzon to its operations or its knowledge. However, this scam prospered during his tenure, with the ministry admitting to having knowledge since September 2022.

Despite police questioning Grixti in December 2021 and his subsequent resignation from parliament, the government never elucidated the reason behind his exit. Moreover, while Falzon’s ministry flagged suspicious applications to police around that time, public disclosure was missing. The appointment of a board of inquiry to scrutinise severe disability benefits procedures only came into play after the Times of Malta brought the issue to light.

He emphasised the ministry’s proactive approach, stating, “Whenever we were asked for information by the police we cooperated and when we found suspicious applications we went to the police ourselves.”

The newly appointed board, Falzon clarified, will only assess the process of approving severe disability benefits. Contradicting the ministry’s terms of reference, he suggested that the board could delve into the processes of all social benefits. However, individual cases won’t fall under its purview, assuring genuine beneficiaries that their entitlements wouldn’t be unjustly revoked.

Falzon also took the opportunity to spotlight the ministry’s efforts in ensuring welfare integrity, emphasizing that not all benefit recipients are defrauding the country. The ministry’s Income Support and Compliance Division reportedly recoups an average of €4 million annually, stemming from unwarranted distributions.

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