FX.co ★ OIG estimates $39.2 billion in improper payments

For the US government, targeted support of the population is the case when it is better to overpay than underpay. Washington has adopted an unprecedented stimulus package to provide financial aid to various groups of the population. That is why it is no surprise that some funds have been improperly spent.

The Office of Inspector General (OIG) has estimated at least $39 billion of overpayments in unemployment benefits. According to the agency, these funds “could have been put to better use.” Every week, all eligible Americans received a $600 check. However, many states faced difficulties when distributing unemployment benefits. Perhaps fearing not to forget someone, they simply gave the money to almost everyone, which means that many local citizens received payments illegally.

According to the watchdog’s report, 42 percent of states did not report on improper payments, while 40 percent of states did not perform required and recommended improper payment detection.

In fact, the US government was so generous that it paid some Japanese residents. The Internal Revenue Service mistakenly sent almost $1,500 checks to thousands of Japanese retirees. The stimulus plan aims to provide support for the US economy and the Americans. Those Japanese people were accidentally included on the list because they had previously worked in the United States and they are now entitled to a small retirement benefit in this country.