audit-pandemic handouts
3.2 tln won worth of pandemic handouts wrongly administered: BAI
SEOUL, July 25 (Yonhap) -- Around 3.2 trillion won (US$2.3 billion) worth of COVID-19 pandemic handouts were wrongly administered to microbusiness owners whose sales were not hurt by the pandemic or who exaggerated their losses, the state audit agency said Thursday.
According to a report by the Board of Audit and Inspection (BAI), the Ministry of SMEs and Startups gave cash handouts to microbusiness owners that did not meet the purpose of the relief measures or failed to fulfill the criteria to receive them.
For example, a solar power company and other businesses that were not directly affected by the pandemic received a total of 120.5 billion won, while businesses that could not operate due to license transfers and other reasons received 11 billion won.
More than 300 microbusinesses exploited the system to receive sums much larger than the losses they suffered during the pandemic, including 21 "ghost companies" that were involved in voice phishing and other crimes.
The BAI attributed the wrongful administration of the handouts to the ministry's unsophisticated system design but decided not to demand accountability from the public servants responsible, given that it was during a unique social crisis.
It did, however, tell the ministry to check for possible illegalities in people's applications for and receipts of the handouts, and to report such cases to investigative authorities while retrieving the money.
The government distributed more than 61 trillion won in relief money and compensation to microbusiness owners from 2020 to 2022 as many faced closures due to tough social distancing measures.
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