The Child Welfare Fraud Scandal

In 2004, the Dutch Government had passed the historic Wet kinderopvang or the Childcare Act that provided childcare benefits to the working families (defined to be Single parent families or families in which both parents are working) and is to be spent on professional babysitters or daycares. Although the programme falls under the Ministry of Social Affairs and Employment, the scheme is enforced by the Tax and Customs Administration under the Ministry of Finance who are also responsible for any fraud prevention in the course of the scheme's implementation.

The Act was controversial in several senses as various daycare agencies began to commit fraud. The flaws of the Dutch Social welfare system particularly came to light when several Bulgarian migrants by applying for housing, healthcare and childcare allowances received about 4 million euros between 2007 and 2013 following which they left the country. This was followed by the adoption of stricter measures such as checking eligibilities beforehand and then paying the allowances for the social welfare schemes and not the reverse as done earlier. It also established an anti-fraud management body which developed the Collaborative Anti-Facilitation Force whose primary duty was to refer people or institutions that enable fraud and thus they began to look suspiciously at the daycare agencies and their beneficiaries. 

The Third Mark Rutte Cabinet (2017-21) with the King Willem-Alexander.

The measures reached an unhealthy stage when the Government began to accuse thousands of familes and parents who were branded as "fraudsters' for claiming child welfare payments between 2013 and 2019 and ordering for the repayment of thousands of euros pushing countless families to financial ruin. Allegations were raised over trivial issues such as a missing signature in the paperwork. Mothers were baselessly targeted by tax officials leading to depression and other psychological problems and many families were wrecked over divorce. Many of the ethnic minorities residing in Netherlands have alleged that this was an institutional way to discriminate against them who were subject to extra scrutiny for holding dual nationality. The persecution went on amidst Parliamentary enquiries and Commission suggesting to better the situation.

In a Press Conference on January 15, Mark Rutte after a meeting with the Cabinet announced the Government's resignation two month ahead of the March 17 Elections.

It was in late 2019 that the tables begun to turn for the government with the vote of No-confidence being tabled against Undersecretary for Finance Menno Snel, who survived it by a thin majority.  However the Parliamentary Committee on Finance recommended for prosecution against the Undersecretary and the civil servants and in May 2020 the Ministry of Finance lodged a formal complaint at the Tax Authorities against alleged officials. Meanwhile the Donner Commision, constituted to look into the matter recommend for the payment of proper compensation to the parents. The Government had decided to pay a sum of 30,000 euros which is expected to be expanded after the Recovery Operation has begun within four months because this figure is grossly less than what the victims had to pay. Former Minister of Social Affairs and Employment Lodewijk Asscher has apologized for his role announcing his intentions of not fighting the March 17 polls.

Undersecretary for Finance Menno Snel(right) was the first to be held accountable for the Debacle with a Vote of No-confidence passed against him failing on a slim majority. Former Minister of Social Affairs and Employment Lodewijk Asscher(left) apologised for his actions and announced that he would step down as MP and leader of the Labour Party.

On 15 January 2021, the Mark Rutte Cabinet collectively resigned taking responsibility for the scandal two months before the General Elections scheduled on March 17. However Rutte's Volkspartij voor Vrijheid en Democratie is expected to return to power with opinion polls strongly favouring the VVD's chances and Rutte will be again sworn as Prime Minister. This was the second time the Dutch ministry has resigned collectively after 2002. In Europe it is the second collective resignation of a government since the Covid-19 pandemic has begun with the Estonian Government resigning due to a corruption scandal and the Giuseppe Conte's coalition in Italy on the verge of a collapse. 

All opinion polls predict the return of the VVD as the Single largest party with Rutte returning back as Prime Minister.

Although many citizens are happy at the prospect of the government taking responsibility and resigning, some dub it as a symbolic gesture because of the VVD's strong chances to be elected back for a fourth time. Whether the Rutte and the VVD led coalition will be able to allay people's hostile feelings through compensations on this scandal built on such a fragile social tenet as Childcare is something we all have to wait for. However this serves as a positive lesson to governments in other democracies, Parliamentary or otherwise that instead of naming corruption as a by-product of the system, it should be nipped at its bud and if allowed to blossom there is no one other than the Government to be held accountable which it should honourably.







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