Swiss authorities close large-scale Covid-19 aid fraud investigation

During the Covid-19 crisis, Switzerland distributed substantial short-time work subsidies to prevent mass layoffs. Seco later embarked on a massive review, scrutinising over 7,200 firms for possible misuse of these payments. To manage the workload, the agency enlisted Ernst & Young and PwC as external auditors, whose fees were largely recouped through the recoveries.

The most recent audit, completed in September, resulted in 171 formal complaints to the relevant cantonal prosecutors. The agency reports that confirmed abuse rates stayed below 1% of all recipients, a level comparable to the 2008 financial crisis. Around 1,200 small enterprises, many in the hospitality sector, were found to have applied for benefits without full familiarity with the evolving rules. In total, the fraud probe estimates roughly 680 million francs were paid out improperly, including claims pursued by unemployment insurance funds themselves.