World

Dutch govt collapses over benefits scandal

Thousands of parents wrongly accused of fraudulently claiming allowance, many forced to pay back large amounts of money

Updated 5 years ago · Published on 15 Jan 2021 11:30PM

Dutch govt collapses over benefits scandal
Dutch Prime Minister Mark Rutte has been in power since 2010 and is one of Europe's longest-serving leaders. – AFP pic, January 15, 2021

THE HAGUE – Dutch Prime Minister Mark Rutte's government resigned today over a scandal in which thousands of parents were wrongly accused of child benefit fraud, leaving many facing financial ruin, local media reported.

Rutte's cabinet decided to quit with just two months to go until elections, and he was set to make an announcement at 2.15pm (1315 GMT), according to reports by Dutch news outlets. 

Thousands of parents had been wrongly accused by Dutch authorities of fraudulently claiming child allowance, with many of them forced to pay back large amounts of money and ending up in financial ruin.

A hard-hitting parliamentary investigation last month said civil servants cut off benefits to thousands of families wrongly accused of fraud between 2013 and 2019.

'Racial profiling' 

Pressure mounted on the government after opposition Labour party chief Lodewijk Asscher, who was social affairs minister in Rutte's previous government, resigned yesterday over the scandal.

Victims this week also lodged a legal complaint Tuesday against three serving ministers and two former ministers, including Asscher.

Many were required to pay back benefits totalling tens of thousands of euros.

Tax officials were also revealed to have carried out "racial profiling" of 11,00 people based on their dual nationality, including some of those hit by the false benefit fraud accusations.

The Dutch government announced at least €30,000 (RM146,950) in compensation for each parent who was wrongly accused but it has not been enough to silence the growing clamour over the scandal.

Rutte – who has been in power since 2010 and is one of Europe's longest-serving leaders – has led three coalition governments since 2010, most recently winning elections in 2017 despite strong opposition from far-right leader Geert Wilders.

Polls say he is likely to win a fourth term in the next election, with public opinion still largely backing his handling of the coronavirus crisis. – AFP, January 15, 2021

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