Audit Report: Rs 14.6 Million Misused in Transition Unemployment Benefits

The audit has unveiled critical shortcomings within the Ministry of Labour, Human Resource Development, and Training, uncovering an alarming Rs 14.6 million misappropriated in Transition Unemployment Benefits. The report painted a distressing picture of administrative ineptitude, with significant delays in digitalisation, inefficient training initiatives, and poor internal oversight contributing to widespread fraud and inefficiency.

At the centre of this scandal is the Occupational Safety and Health Division.

Although a digitalisation project, aimed at modernising the division, was completed in June 2024 with an allocated budget of Rs 7.5 million, only a mere 20% of the required data has been migrated.

Shockingly, penalties for delays have not been implemented, and crucial bank guarantees have not been renewed.

The audit also identified a staggering 146 cases of fraud associated with Transition Unemployment Benefits, where individuals continued to receive assistance while being employed.

This misconduct, driven by incomplete documentation and weak internal controls, has led to significant overpayments.

Both the Youth Employment Programme (YEP) and the Women Back to Work Programme (WBTW) are suffering from dismal performance.

Out of 6,838 applications, a mere 1,472 women accepted job offers, despite a monthly allowance of Rs 10,575.

Similarly, 63% of trainees in the YEP left the programme prematurely, highlighting an urgent need for better engagement and support.

The Ministry has also faced criticism for its failure to effectively utilise Rs 104.3 million allocated for training and employability programmes within the Training Programmes Unit.

Remarkably, funds designated for the training and placement of individuals with disabilities have seen almost no expenditure over the last two years.

Despite the Skills Development Authority Act being enacted in November 2022, the much-anticipated Skills Development Authority has yet to become operational.

A budget of Rs 25 million was assigned for the creation of a skills registry for qualified workers, yet an astonishing 1.6% of this amount has been utilised.

Furthermore, the Work Permit Application System continues to operate manually, despite plans for its integration into the National Electronic Licensing System (NELS) by January 31, 2024, as specified by the Economic Development Board (EDB).

As a result, approximately Rs 22.5 million has been collected in penalties for late permit renewals, with payment delays extending up to six months.

In addition, as of June 2024, ten government offices were being used without valid leases, with rent paid on a month-to-month basis.

Alarmingly, two offices lacked fire safety certificates, violating the provisions of the Mauritius Fire and Rescue Service Act of 2013.

This comprehensive audit has exposed a system in turmoil, demanding immediate action to address these failures and restore public confidence in essential government services.

Source: Defi Media