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

This stretch of Highway 14 on Parkinson Hill near Port Renfrew is undergoing reconstruction following a road washout in 2018. (Ministry of Transportation photo)
22-hour Highway 14 road closure planned for Wednesday

Closure needed to install a temporary bridge structure near Port Renfrew

A weekend of sunny skies may have Victoria breaking temperature records, according to an Environment Canada meteorologist. (Jane Skrypnek/News Staff)
Temperature records eyed for Victoria with sunny weekend forcast

Victoria hit the highest April 14 temperature since 1926 on Wednesday

Fire crews respond to the 3500-block of Blanshard Street in Saanich on April 16. (Devon Bidal/News Staff)
UPDATED: Saanich fire crews close road over smoking underground electrical equipment

Police diverting traffic as Vernon Avenue closed to all through traffic

The District of Saanich announced April 12 that the Cedar Hill Golf Course clubhouse would remain closed for at least six months for repairs after a flood on Feb. 14 caused by faulty sprinklers. (Devon Bidal/News Staff)
Faulty sprinklers to blame for second Cedar Hill Golf Course clubhouse closure in just over a year

Saanich facility facing six-month shutdown for flood repairs, course not impacted

A man accused of sexual assault has resigned as a coach at Castaway Wanderers Rugby Club and has had his employment suspended at The Local. (Google Streetview/Screenshot)
Rugby coach resigns, is suspended from Victoria restaurant following sexual assault allegations

Social media page creates a safe space for survivors to share their stories

Rainbow trouts thrashing with life as they’re about to be transferred to the largest lake of their lives, even though it’s pretty small. These rainbows have a blue tinge because they matched the blue of their hatchery pen, but soon they’ll take on the green-browns of their new home at Lookout Lake. (Zoe Ducklow/News Staff)
VIDEO: Lookout Lake stocked with hatchery trout to delight of a seniors fishing club

The Cherish Trout Scouts made plans to come back fishing soon

Vancouver Police Const. Deepak Sood is under review by the Independent Investigations Office of B.C. after making comments to a harm reduction advocate Sunday, April 11. (Screen grab)
VIDEO: Vancouver officer convicted of uttering threats under watchdog review again

Const. Deepak Sood was recorded Sunday saying ‘I’ll smack you’ and ‘go back to selling drugs’ to a harm reduction advocate

Provincial health officer Dr. Bonnie Henry prepares a daily update on the coronavirus pandemic, April 21, 2020. (B.C. Government)
B.C.’s COVID-19 infection rate persists, 1,005 new cases Friday

Hospitalization up to 425, six more virus-related deaths

The Nautical Dog Cafe at Skaha marina is getting its patio ready in hopes Mother Nature will provide where provincial restrictions have taken away indoor dining. (Facebook)
‘A lot of instability’: B.C. restaurants in layoff limbo

As COVID-19 cases stay high, restaurants in British Columbia are closed to indoor dining

Prime Minister Justin Trudeau looks on as Deputy Prime Minister and Finance Minister Chrystia Freeland responds to a question during a news conference on Parliament Hill in Ottawa, Tuesday, Aug. 18, 2020. THE CANADIAN PRESS/Adrian Wyld
Expectations high as Trudeau Liberals get ready to unveil first pandemic budget

The Liberals will look to thread an economic needle with Monday’s budget

John Furlong, Own The Podium board chairman and former CEO of the Vancouver Olympics, addresses a Vancouver Board of Trade luncheon in Vancouver, B.C., on Wednesday November 25, 2015.THE CANADIAN PRESS/Darryl Dyck
John Furlong presents 2030 Winter Games vision to Vancouver Board of Trade

Vancouver and Whistler would remain among host sites because of 2010 sport venues still operational

Photo by Metro Creative Connection
New campgrounds coming to B.C. parks as part of $83M provincial boost

This season alone, 185 campsites are being added to provincial parks, says Minister of Environment and Climate Change

The Nanaimo Clippers’ game against the Alberni Valley Bulldogs slated for Thursday, April 15, has been postponed due to a “potential positive COVID-19 test result,” says the BCHL. (News Bulletin file photo)
Nanaimo Clippers COVID-19 test negative, team can practise and play

Junior A hockey team had suspended activities the day before out of ‘abundance of caution’

Paper Excellence took over Catalyst Paper operations in B.C. in 2018. (Paper Excellence photo)

Most Read