Criminal infiltration of the Swedish welfare system is a growing problem, according to the Social Democrats. To protect public resources, the party proposes the introduction of a national warning register to prevent rogue actors from gaining access to tax-funded contracts.

Swedish welfare is vulnerable to fraud, corruption and infiltration by organized crime – something that costs taxpayers millions every year. In 2021, for example, around SEK 13-16 billion (€1.2-1.5 billion) disappeared in incorrect payments, which may involve incorrect grants paid out, but also criminal infiltration.

– The welfare sector is an area where we know that a lot of money disappears, said Carina Gunnarson, associate professor of political science at the Swedish Defence Research Agency last year, according to forskning.se.

As a result, the state now has a large amount of information about criminals and their businesses, according to the Social Democrats in Stockholm, who point out that this information is not shared with municipalities. Industries such as cleaning and park maintenance, construction and personal assistance are the most risky. Measures need to be taken to prevent even more tax money from ending up with criminals.

– Welfare fraud fuels organized crime. But it also affects citizens who need a strong welfare system – the elderly who rely on home care services or children and young people whose future depends on a well-functioning residential care home. In the City of Stockholm, we are taking action against welfare crime and work-related crime. But we municipalities cannot do the job alone, says Anders Österberg (S), acting mayor of Stockholm, in a press release.

Social Democrats: Introduce a warning register

To prevent tax money from ending up in the hands of criminals, the party proposes a special warning register. Under the Social Democrats’ previous government, a system was investigated in which the Swedish Companies Registration Office would coordinate register checks between authorities. This would give municipalities access to information from the police, the Swedish Tax Agency and the Swedish Enforcement Authority, among others, when they procure services from private actors.

In Italy, there is a so-called “anti-mafia register” where companies are automatically checked against databases that collect information on organized crime, labor crime and serious financial irregularities. The Social Democrats believe that the previous investigation should be used as a basis, but be more inspired by the Italian register.

According to the report, the register should have been in place already this year, but the current government has postponed its introduction until 2028.

– Tax money should not end up in the hands of criminal networks or rogue companies that exploit their employees. Instead of speeding up the work against labor crime, the government is now postponing the issue, which is not good enough, says Johan Danielsson (S), first vice-chairman of the European Parliament’s labor market committee.