State auditor investigates Employment Security Department

WASHINGTON — On Wednesday, State Auditor Pat McCarthy announced she was launching two audits into the Employment Security Department.

She says the investigators are needed after significant fraud and loss of state funds.

“Everyone recognizes these problems came at the worst possible time, when the need for essential unemployment benefits was unprecedented. Our role at the State Auditor’s Office is to conduct independent reviews, and I have directed my staff to look in areas that will provide the public and state leaders with a greater understanding of how needed benefits were stolen and delayed,” McCarthy said.

One audit will focus on what led to delays and improper payments. The other will investigate how criminals in Nigeria stole $500 million in unemployment benefits. Currently, the state has recovered $333 million.

“I know the Employment Security Department is working hard to deliver benefits to people who need them, help law enforcement track down the criminals who stole funds and recover lost funds,” McCarthy said. “Beyond the immediate crisis, however, there are clearly lessons to be learned, and we intend to bring them to light.”

Employment Security Department Commissioner Suzi Levine released a statement in response to the audits:

“We welcome this opportunity - both in the spirit of continuous improvement and, most importantly, in our primary charge to provide ever better service to the people of Washington. We believe that the key learnings from this audit will help not just ESD, but all of state government. Our goal in this unprecedented crisis has been and continues to be getting benefits out to eligible Washingtonians as quickly as possible. We look forward to working with Auditor McCarthy and her team to accelerate the work that will meet that goal.”

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