Five people have been arrested so far in a suspected fraudulent case involving two service providers recognised by the Community Care Service Voucher Scheme for the Elderly seeking to obtain government subsidies.

Making the announcement today, the Social Welfare Department (SWD) said it was assisting with the Independent Commission Against Corruption's (ICAC) investigation.

Adopting the “money-following-the-user” concept, the scheme allows elderly users to purchase nursing care, rehabilitation services, carer training and other suitable community care services from recognised service providers (RSPs) to meet their needs. Users can also switch RSPs flexibly.

Last year, the SWD received a report that an RSP was suspected of making use of the scheme to deceive government subsidies by submitting false service records to the SWD and encouraging families or carers of the seniors to make fraudulent claims on service usage.

Apart from making an immediate referral to the ICAC, the SWD also provided the commission with information to assist in the investigations.

The five arrestees come from two different service providers. The SWD has strengthened the auditing of their service records and documents as well as contacted the elderly users and their families to ensure that they have obtained the services they need.

The SWD reaffirms its zero tolerance for any unlawful act, adding that referrals will be made to enforcement agencies for investigations.

The department said it will continue to strictly monitor the service quality of RSPs and review the relevant procedures taking reference to the ICAC’s corruption prevention advice.

Subject to the ICAC’s investigation results, the SWD may terminate the service agreements with the service providers concerned. It will also take appropriate action to recover the overpayments, should any subsidies be released to non-entitled bodies.