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The Social Welfare Department (SWD) generally welcomes the recommendations made in the Ombudsman's report on a direct investigation into the system for processing applications for disability allowance (DA).
"We will follow up on the recommendations relating to the dissemination of information, mechanism for approving applications, and mechanisms for detecting errors with a view to improving the system for processing DA cases," a SWD spokesman said today (November 16).
"We are also pleased to note that the Ombudsman in principle endorses our determination to safeguard the public purse and to seek reimbursement in overpayment cases," the spokesman added.
Of the 71 Higher Disability Allowance (HDA) cases involving overpayment studied by the Ombudsman, most recipients had agreed with the SWD on a repayment schedule. The SWD would continue to work with the remaining few recipients to agree on the repayment arrangements.
"We will review the circumstances of individual cases including all evidence brought to our attention, with a view to working out a fair and equitable arrangement with the recipients concerned so as not to cause them undue hardship," the spokesman stressed.
The SWD had put in place various cross-checking mechanisms, periodic case reviews and random checks to detect unreported changes to minimise chances of overpayment. In fact, the 71 HDA overpayment cases were detected as a result of the department's efforts to step up cross-checking by matching data with the Education and Manpower Bureau (EMB).
The spokesman reiterated that DA applicants had the responsibility to provide the SWD with accurate information and to make timely reports on changes to information provided.
"Under the system of self-declaration, all applications and reports are signed by the applicants and the cause of overpayment in these cases should not be attributed solely to SWD staff," the spokesman said.
Referring to the figures quoted in the Ombudsman's report, the spokesman reckoned that the figure of 8.44% (being 6,132 HDA overpayment incidents as a percentage of total HDA caseload of 72,686 cases over the past five years) could have overstated the magnitude of the problem.
"There can be more than one overpayment incident in one HDA case due to situations like frequent and repeated admissions to hospital," the spokesman explained, adding that actual overpayment represented only 1.09% of total HDA expenditure.
The spokesman also pointed out that as the DA was paid in advance, overpayment was unavoidable due to unreported cases or cases of late reporting particularly in those involving hospitalisation of severely disabled people who understandably could not report promptly to the SWD.
"Overpayment is not unique to the Hong Kong social security system; other countries with established social security systems also face similar challenges," the spokesman said.
However, the spokesman stressed that the SWD would continue its effort to minimise the chances of overpayment and it would continue to keep under review its services to DA recipients including the processing and handling procedures as well as internal work flow.
The SWD made improvements to the Application/Review Forms and publicity pamphlets in 2005 to make it clearer that special boarding schools under the EMB fell under the category of government or subvented residential institutions apart from data-matching with the EMB.
Starting from October last year, applicants are also required to fill in the application form themselves to strengthen their sense of accountability in making the application.
Ends/Thursday, November 16, 2006
Issued at HKT 11:36
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