Tri-City Sun

State Representative Timmy Beson, alongside other legislators, is advocating for a House panel to address recent findings concerning Michigan's Unemployment Insurance Agency (UIA). The call follows the release of an audit by Michigan’s nonpartisan Office of the Auditor General. This fifth and final audit scrutinizes fraud and improper payments within the UIA during and after the COVID-19 pandemic.

The audit, focusing on the Investigations Division at UIA, revealed significant failures between January 2020 and October 2022. It highlighted that the agency did not attempt to identify many imposter claims and was inadequate in recovering numerous payments and penalties. The report identified $245.1 million in potentially improper payments made to ineligible individuals, with no actions taken by UIA to verify these payments.

"Some of these incidents include payments made to people who were no longer alive or were serving time in prison," stated Beson. "What we have seen is not acceptable and it hurt hardworking small business owners and taxpayers who help fund these types of programs specifically designed for people facing uncertain times."

The report estimates that UIA overpayments during the pandemic amount to $8.3 billion, with $5.6 billion attributed to suspected fraud. In response, Beson has signed a letter urging the House Ethics and Oversight Committee to investigate this substantial fraud further. Despite new revelations about UIA operations, this committee has not convened since June.

Beson emphasized the necessity for legislative action aimed at reforming the unemployment agency. He advocates for increased transparency, fraud prevention measures, and improved customer service for both unemployed workers seeking benefits and employers contributing taxes into the system. In April last year, House Republicans introduced House Bills 4369-74 intended to enhance accountability and protect taxpayers; however, these bills are yet to be reviewed by the House Ethics and Oversight Committee.

"Even with the challenges the pandemic presented, the agency has clearly fallen short in their responsibilities and must be reformed," Beson asserted. "When public dollars are misused in this fashion, people lose faith in government."