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Spain’s Audit Body Finds Major Deficiencies in COVID-19 Furlough Program

It recommends digitalizing furlough processing to strengthen oversight.

Overview

  • Between March 2020 and March 2022 the Tribunal de Cuentas found that the absence of a dedicated IT platform and weak coordination led to contradictory and duplicate ERTE-COVID resolutions.
  • At its peak, the furlough scheme supported over 558,000 companies and 4.15 million workers with more than €26 billion mobilized in benefits and social security exemptions.
  • Control measures uncovered €25.4 million in unemployment benefits paid to 10,896 workers whose inactivity was not reported and flagged 278,757 companies for possible irregularities, all of which were referred to the Labour Inspection.
  • The SEPE had to draw on €13.535 billion of its own reserves after failing to receive EU funds directly earmarked for pandemic furlough support.
  • The report urges the Labour Ministry to implement computerized processing and establish a formal information-exchange protocol among labour authorities to strengthen transparency and oversight.