Auditor general Karen Hogan said the rollout of the wage subsidy highlighted pre-existing weaknesses in federal systems and data that need to be addressed. THE CANADIAN PRESS/Graham Hughes

Federal government faces costly path to recoup wrongly paid COVID-19 aid: auditor

Auditor general Karen Hogan says the federal government missed its chances to flag fraudulent claims

Auditor general Karen Hogan says the federal government missed chances to flag fraudulent claims for emergency benefits last year.

She says officials will now have to rely on costly, years-long efforts to recoup wrongful payments.

Efforts will begin this spring for the Canada Emergency Wage Subsidy, and this fall for the Canada Emergency Response Benefit.

Hogan’s two audits today each note how quickly the programs rolled out last March and April, eschewing the usual months-long policy-development process to quickly get aid to hard-hit businesses and workers.

The audits flag multiple moments when federal officials could have made changes to prevent the wage subsidy from going to companies with unpaid tax bills, or the CERB from potentially going to known fraudsters.

Hogan says the rollout of the wage subsidy, in particular, highlighted pre-existing weaknesses in federal systems and data that need to be addressed.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

From left to right: Vicki Barta, Bruce Ormond, Greg Heide, Gord McInnis, and Charles Harman rehearse via zoom for the upcoming radio play, “Visitor from Planet Zoltan”. (Submitted photo)
Radio plays prove successful for Ladysmith Little Theatre, four more in production

Ladysmith Little Theatre pivoted to producing radio plays during the pandemic

Two men were seen removing red dresses alongside the Island Highway in Oyster Bay. (Submitted photo)
Two men filmed removing red dresses from trees in Oyster Bay

Activists hung the dresses to raise awareness for Vancouver Island Murdered/Missing Women & Girls

Ladysmith’s Taylor Walters received the Terry Fox Humanitarian Award and is hard at work pursuing her Bachelor’s Degree in Human-Computer Interaction at Quest University. (Submitted photo)
Ladysmith teen receives Terry Fox Humanitarian Award for advocating equal access to STEM opportunities

‘Different people think differently and that’s so important for innovation,’ Taylor Walters says

A vehicle is totalled after a driver crashed into the side of a tow truck outside Central Island Towing. (Cole Schisler photo)
Car totalled after colliding with the back of a tow truck in Ladysmith

Nobody was injured, but repairs on the tow truck are expected to cost thousands of dollars

Photo collage of loved ones lost to substance use and overdose. (Photo courtesy Moms Stop The Harm)
B.C. overdose deaths still rising 5 years after public health emergency declared

Moms Stop the Harm calls on B.C. to provide safe supply in response to deadly illicit drug use

Demonstrators at the legislature on April 14 called on the province to decriminalize drug possession and provide widespread access to regulated safe supply across B.C. (Jake Romphf/News Staff)
Rally calls for decriminalization, safe supply on 5th anniversary of overdose emergency declaration

From 2016 to the end of February, 7,072 British Columbians died due to overdose

Nanaimo Regional General Hospital. (News Bulletin file photo)
Nanaimo hospital experiencing another COVID-19 outbreak

Three patients tested positive for the virus in NRGH’s high-intensity rehab unit

(Government of Canada)
Liberal MP caught stark naked during House of Commons video conference

William Amos, in Quebec, appeared on the screens of his fellow members of Parliament completely naked

Provincial health officer Dr. Bonnie Henry updates B.C.’s COVID-19 situation at the B.C. legislature, Feb. 1, 2020. (B.C. government)
B.C.’s COVID-19 case count jumps to 1,168 Wednesday, nearly 400 in hospital

Now 120 coronavirus patients in intensive care, six more deaths

Moss covered branches are seen in the Avatar Old Growth Forest near Port Renfrew on Vancouver Island, B.C. Thursday, Sept. 29, 2011. THE CANADIAN PRESS/Jonathan Hayward
B.C. blockades aimed at protecting old-growth forests reveal First Nation split

Two Pacheedaht chiefs say they’re ‘concerned about the increasing polarization over forestry activities’ in the territory

Richmond RCMP Chief Superintendent Will Ng said, in March, the force received a stand-out number of seven reports of incidents that appeared to have “racial undertones.” (Phil McLachlan/Capital News)
‘Racially motivated’ incidents on the rise in B.C’s 4th largest city: police

Three incidents in Richmond are currently being invested as hate crimes, says RCMP Chief Superintendent Will Ng

Commercial trucks head south towards the Pacific Highway border crossing Wednesday (April 14, 2021). The union representing Canadian border officers wants its members to be included on the frontline priority list for the COVID-19 vaccine. (Aaron Hinks photo)
CBSA officers’ union calls for vaccine priority in B.C.

Border officers at ports including, YVR and land crossings should ‘not be left behind’

(Amandalina Letterio - Capital News)
Kelowna demonstrators show support for Vancouver Island logging activists

Two Kelowna men stood atop a pedestrian bridge on Harvey Avenue to raise awareness about old-growth forests

Most Read