The report released by the state auditor Shad White found procedures in place at the Mississippi Department of Employment Security like the one week waiting period and work search requirements were waived last year during the coronavirus pandemic. He notes other steps were bypassed that led to benefits being paid to people who hadn't lost their jobs, some who were incarcerated and identity thieves. White says there are lessons to be learned.
"We need to have better fraud mechanisms in place. We need to keep some of the fraud mechanisms regardless of the fact there's a need or pressure to push money out the door," said White.
White says the nearly $118 million in over paid unemployment benefits is 5.5 percent of what was paid out during the 2020 fiscal year. He says all states paid out large sums in fraudulent unemployment benefits. MDES Executive Director Jackie Turner says there was pressure to get the funds out the door. They expanded hours, hired and trained additional staff to process the influx of applications. She says while she knows the auditor must assess the risk, some decisions were made in consultation with the governor. Turner says given the same circumstances she would support waiving procedures.
"Suddenly people are out of work that have never been out of work before and there was a cry for help. It is our job and it was a job then to get that out as quickly as possible," said Turner.
The agency paid out $2.1 billion last year. Turner says they will recoup some of the over paid funds by requiring repayments and garnishing wages along with state and federal income tax refunds.
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