Auditor General Karen Hogan reported Dec. 6 that $27.4 billion of Canada Emergency Response Benefit (CERB) payments are suspicious and should be investigated. She said at least $4.6 billion was paid to ineligible individuals.

The auditor’s report said Canada Revenue Agency (CRA) has limited time to recover most of the money. “Unless the department or agency suspect that a recipient misrepresented information, the time frame to verify whether a recipient is eligible for the payment is 36 months for most COVID‑19 benefit programs,” it said.

CRA and Employment and Social Development Canada (ESDC) are working together on Auditing CERB payments.

“I am concerned about the lack of rigour on post-payment verifications and collection activities,” Hogan said. She said CRA had limited its activity so far to processing voluntary repayments, which have recovered about $2.3 billion.

Auditing Timeline and Costs

CRA spokesperson Hannah Wardell told The Epoch Times via email that the auditing process began in January. Regarding how much longer CRA will likely need to complete the auditing, she said “The CRA’s plans remain evergreen and subject to change to consider the current economic and public health landscape, these compliance efforts are planned to continue for the next few years.”

As of March 31, 2022, the agencies had spent about $94 million on auditing activities, Wardell said. Projected costs from that time “and beyond,” are estimated at about $132.5 million, she said, and “costs beyond 2025 will be re-evaluated at a later date.”

Conservative MP Kelly Block has been a critic of the costs of CERB and auditing it. “They sent CERB cheques to prisoners. They sent CERB cheques to public servants who were still drawing salaries,” Block told The Epoch Times. “On top of this, they gave wage subsidies to corporations that didn’t need them, yet denied struggling small business owners.”

In a Sept. 21 Inquiry of Ministry tabled in the Commons, CRA said it was pursuing overpayments of as little as $7 and as much as $14,000, according to Blacklock’s Reporter. “The average amount of outstanding debt on these notices is $1,056,” it said.

The Community Advocacy and Legal Centre joined with other legal clinics last year to ask the federal government to grant CERB repayment amnesty to low-income people who received CERB in error. “To ask those already living in deep poverty to repay the CERB will only ensure they remain in deep poverty for years to come,” the centre said in a bulletin.

CRA and ESDC said they are pursuing audits and repayments with empathy. No penalties or interest will be charged for people who are found to have applied in good faith, they said. And flexible repayment plans will be offered.

“The CRA recognizes that the COVID-19 pandemic has been difficult for many Canadians, and remains committed to being compassionate, flexible, and supportive during this challenging time,” the CRA’s Wardell said. “The Government is committed to providing an empathetic, people-first approach to all Canadians,” the ESDC said in a statement to The Epoch Times.