North Michigan News

State Representative John Roth has called for an overhaul of Michigan's Unemployment Insurance Agency (UIA) after an audit revealed failures by the agency to investigate improper payments made during and after the COVID-19 pandemic. The audit, conducted by the Office of the Auditor General, found that the UIA neglected to address fraudulent activities, including payments to inmates and deceased individuals.

In response to the audit, Rep. Roth stated, "It doesn't matter how much better UIA leadership says things are; this level of fraud mandates we overhaul the department and restore public trust." He emphasized the need to address the issue of fraud and ensure that taxpayer dollars are not being misused.

The audit specifically focused on the Investigations Division at the UIA and highlighted significant shortcomings in the agency's efforts to identify and recover fraudulent payments. Between January 2020 and October 2022, the UIA failed to detect a large number of imposter claims and did not take action to recover payments and penalties. Previous audits have already uncovered billions of dollars in fraudulent payments, and the most recent report revealed an additional $245.1 million in potentially improper payments to ineligible individuals.

Despite the UIA being aware that some recipients were either deceased or incarcerated, no steps were taken to evaluate whether the payments were appropriate. This lack of action raises concerns about the agency's ability to effectively manage funds and protect against fraudulent activities.

To address these issues, House Republicans introduced a plan earlier this year to reform the UIA. The proposed package aims to increase transparency, prevent fraud, and improve customer service for both unemployed workers seeking benefits and employers who contribute to the unemployment system.

However, the bills introduced by House Republicans have not made progress in the House Ethics and Oversight Committee, which has not convened since June. This lack of action from the committee's Democrat chair is hindering the necessary reforms to the UIA.

The audit's findings highlight the urgent need for comprehensive reform within the UIA. It is crucial to restore public trust and ensure that taxpayer dollars are used appropriately. The House Ethics and Oversight Committee must take immediate action to address the issues raised in the audit and support the proposed plan to overhaul the agency.

Rep. Roth's call for reform and his emphasis on restoring public trust reflect the concerns of many citizens who expect their government to effectively manage funds and protect against fraud. The audit serves as a wake-up call to address the shortcomings within the UIA and take decisive action to prevent further misuse of taxpayer dollars.

To find out more, go to this link: https://gophouse.org/posts/rep-roth-unemployment-agency-audit-uncovers-uninvestigated-fraud