DOGE trumpets unemployment fraud that the government already found years ago

Elon Musk attends a cabinet meeting at the White House in Washington, DC, US. (Reuters/File)
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Updated 16 April 2025
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DOGE trumpets unemployment fraud that the government already found years ago

  • Though DOGE ostensibly looked at longer timeframe than federal investigators previously had, it tallied just $382 million in fake unemployment claims

NEW YORK: The latest government waste touted by billionaire Elon Musk’s cost-cutting Department of Government Efficiency is hundreds of millions of dollars in fraudulent unemployment claims it purportedly uncovered.
One problem: Federal investigators already found what appears to be the same fraud, years earlier and on a far greater scale.
In a post last week on X, the social media site Musk owns, DOGE announced “an initial survey of unemployment insurance claims since 2020” found 24,500 people over the age of 115 had claimed $59 million in benefits; 28,000 people between the ages of 1 and 5 collected $254 million; and 9,700 people with birthdates more than 15 years in the future garnered $69 million from the government.
The tweet drew a predictable party-line reaction of either skepticism or cheers, including from Musk himself, who said what his team found was “so crazy” he re-read it several times before it sank in.
“Another incredible discovery,” marveled Labor Secretary Lori Chavez-DeRemer, who repeated DOGE’s findings to President Donald Trump in a Cabinet meeting last week.
Chavez-DeRemer’s recounting of the alleged fraud, including claims of benefits filed by unborn children, drew laughter in the Cabinet room and a reaction from Trump himself.
“Those numbers are really bad,” he said.
But Chavez-DeRemer needn’t look further than her own department’s Office of the Inspector General to find such fraud had already been reported by the type of federal workers DOGE has demonized.
“They’re trying to spin this narrative of, ‘Oh, government is inefficient and government is stupid and they’re catching these things that the government didn’t catch,’” says Michele Evermore, who worked on unemployment issues at the US Department of Labor during the administration of former President Joe Biden. “They’re finding fraud that was marked as fraud and saying they found out it was fraud.”
The Social Security Act of 1935 enshrined unemployment benefits in federal law but left it to individual states to set up systems to collect unemployment taxes, process applications and mete out support.
Though states have almost complete control over their own unemployment systems, special relief programs — most notably widely expanded benefits enacted by the first Trump administration at the outset of the COVID pandemic — inject more direct federal involvement and a flood of new beneficiaries into the system.
In regular times, state unemployment systems perform “very well, not so well and terribly,” according to Stephen Wandner, an economist at the National Academy of Social Insurance who authored the book “Unemployment Insurance Reform: Fixing a Broken System.” With COVID slamming the economy and creating a flood of new claims that states couldn’t handle, Wandner says many more were “quite terrible.”
Trump signed the COVID unemployment relief into law on March 27, 2020, and from the very start it became a magnet for fraud. In a memo to state officials about two weeks later, the Department of Labor warned that the expanded benefits had made unemployment programs “a target for fraud with significant numbers of imposter claims being filed with stolen or synthetic identities.”
That same memo offered an option for states trying to protect a person whose identity was stolen to fraudulently collect unemployment benefits. To preserve a record of the fraud but keep innocent people from being linked to it, states could create a “pseudo claim,” the memo advises.
Those “pseudo claims” led to records of toddlers and centenarians getting checks. The Labor Department’s inspector general tallied some 4,895 unemployment claims from people over the age of 100 between March 2020 and April 2022, but another departmental memo explained that the filings stemmed from states changing dates of birth to protect people whose identities were used.
“Many of the claims identified ... were not payments to individuals over 100 years of age, but rather ‘pseudo records’ of previously identified fraudulent claims,” the 2023 memo says.
A Labor Department spokeswoman did not respond to questions about Musk’s findings and DOGE gave no details on how it came to find the supposed fraud or whether it duplicates what was already found.
Though DOGE ostensibly looked at longer timeframe than federal investigators previously had, it tallied just $382 million in fake unemployment claims, a tiny fraction of what investigators were already aware.
In 2022, the Labor Department said suspected COVID-era unemployment fraud totaled more than $45 billion. The Government Accountability Office later said it was far worse, likely $100 billion to $135 billion.
“I don’t think it’s news to anyone,” says Amy Traub, an expert on unemployment at the National Employment Law Project. “It’s been widely reported. There’ve been multiple congressional hearings.”
If DOGE’s newest allegations have an air of familiarity, it’s because they echo its prior findings of about Social Security payments to the dead and the unbelievably old. Those were false claims.
That makes DOGE an imperfect messenger even when fraud has occurred, as with unemployment claims.
Jessica Reidl, a senior fellow at the conservative think tank The Manhattan Institute, is a fiscal conservative who so champions rooting out federal waste she has written 600 articles on the subject. Though she believes unemployment insurance fraud is rife, she has trouble accepting any findings from DOGE, which she says has acted ineffectively and possibly illegally.
“When DOGE says impossibly old dead people are collecting unemployment in huge numbers, I become skeptical,” Reidl says. “DOGE does not have a good track record in that area.”
Traub said the burst of pandemic-era unemployment fraud led states to implement new security measures. She questioned why Musk’s team was trumpeting old fraud as if it’s new.
“Business leaders and economists are warning about a national recession, so it’s natural to think about unemployment,” says Traub. “It’s an attack on the image of a critically important program and perhaps an attempt to undermine public support on unemployment insurance when it couldn’t be more important.”


Malema, the radical politician in Trump’s South Africa video

Updated 10 sec ago
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Malema, the radical politician in Trump’s South Africa video

  • In a tense Oval Office meeting, Ramaphosa and his delegation distanced themselves from Malema’s rhetoric
  • Malema mocked the meeting at the White House on social media as ‘A group of older men meet in Washington to gossip about me’

JOHANNESBURG: A video projected by US President Donald Trump to support false claims of “persecution” of white South Africans prominently featured Julius Malema, a firebrand politician known for his radical rhetoric.

Trump ambushed President Cyril Ramaphosa with the 4:30-minute video shown in the Oval Office on Wednesday during talks at which South Africa wanted to salvage bilateral ties and push back on baseless claims from the United States about a “white genocide.”

Malema was the main character, seen in several clips wearing the red beret of his populist, marxist-inspired Economic Freedom Fighters (EFF) party and chanting calls to “cut the throat of whiteness” as well as a controversial anti-apartheid song “Kill the Boer, kill the farmer.”

Trump falsely said he was a government official, insinuating his inflammatory slogans reflected an official policy against South Africa’s white minority.

But Malema, 33, is an opposition politician, leader of the anti-capitalist and anti-US EFF that he founded in 2013 after being thrown out of the youth league of the ruling African National Congress (ANC), where he was accused of fomenting divisions.

He portrays himself as the defender of society’s most disadvantaged and has attracted largely young supporters angry at the large social inequalities that exist in South Africa 30 years after the end of apartheid.

Renowned for its theatrics, his party gained prominence advocating radical reforms including land redistribution and nationalizing key economic sectors.

But the party only came fourth in last year’s elections, with 9.5 percent of the vote, and it has lost popularity since, with several of its top brass leaving to join a new party of former president Jacob Zuma, uMkhonto weSizwe (MK).

In the tense Oval Office meeting, Ramaphosa and his delegation distanced themselves from Malema’s rhetoric.
Agriculture Minister John Steenhuisen, a member of the center-right Democratic Alliance, told Trump he joined Ramaphosa’s multiparty coalition “precisely to keep these people out of power.”

“I’m the biggest target of that rabble-rouser,” businessman Johann Rupert told Trump.

The decades-old “Kill the Boer” rallying cry was born during the struggle against the brutal policies of white-minority rule, and its use since the end of apartheid in 1994 infuriates parties that represent white South Africans, with many attempting to get it banned.

A ban in 2010 was lifted after courts said it does not constitute hate speech and instead should be regarded in its historical context, and for the fact that it was being used by Malema only as a “provocative means of advancing his party’s political agenda.”

“But why wouldn’t you arrest that man?” Trump asked Ramaphosa Wednesday.

“In a Constitutional democracy... a person cannot be arrested when what they are doing is explicitly permitted in law,” political scientist Sandile Swana told AFP.

Although controversial, the vocal Malema was exerting the “fundamental rights of freedom of expression,” he said.

In the context of the anti-apartheid struggle, “Kill the Boer” had “nothing to do with the killing of a specific white man, but with the killing of the system of apartheid,” he said.

Malema mocked the meeting at the White House on social media as “A group of older men meet in Washington to gossip about me.”

The party later accused Ramaphosa of “betraying the struggle for land and dignity.”

“Surrounded by elites like Johann Rupert and John Steenhuisen, Ramaphosa denounced a liberation song upheld by South Africa’s highest courts and failed to defend the nation against the false narrative of white genocide,” it said.


German finance minister optimistic that G7 can agree joint communique on Ukraine support

Updated 32 min 38 sec ago
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German finance minister optimistic that G7 can agree joint communique on Ukraine support

  • “I am very positive that we will also reach a joint communique,” Klingbeil said
  • If Russia is not prepared to enter into serious negotiations with Ukraine, “we will consider further sanctions“

BANFF, Canada: German Finance Minister Lars Klingbeil on Thursday said he was optimistic that the Group of Seven advanced economies could agree a joint communique showing support for Ukraine, amid a rift between the US and the rest of the G7 on the issue.

Sources earlier said it was unclear whether the delegations at G7 finance ministers’ consultations in Canada could agree on joint language, with one European source saying that US officials wanted to delete language describing Russia’s invasion of Ukraine as “illegal.”

“I am very positive that we will also reach a joint communique,” Klingbeil said at a press conference in Banff, adding that if Russia is not prepared to enter into serious negotiations with Ukraine, “we will consider further sanctions.”

The EU and Britain this week announced new sanctions against Russia without waiting for Washington to join them, a day after President Donald Trump’s phone call with Russian President Vladimir Putin brought about neither a ceasefire in Ukraine nor fresh US sanctions.

European leaders have been lobbying intensely for the Trump administration to join them in imposing new sanctions if Russia rejected a ceasefire.

Klingbeil said that G7 finance ministers and their Ukrainian counterpart had concluded in a meeting that the conflict was “a brutal war” initiated by Russian President Vladimir Putin and that support for Ukraine continued unabated.

“I am optimistic that in the end such formulations will also be included in the communique, but please wait for the exact wording, as I want to leave that to the Canadian presidency this afternoon,” he said.

TRADE SOLUTIONS

Klingbeil earlier on Wednesday met United States Treasury Secretary Scott Bessent for a bilateral conversation and the two agreed to meet again in Washington.

“We have always discussed forward, how we can take steps together to find solutions,” Klingbeil said about the meeting, adding that Bessent’s invitation was a good sign.

Klingbeil warned, however, that if no agreement can be found with the United States on tariffs, “then we can expect turbulence on the markets again very quickly.”

The Trump administration has imposed a 25 percent tariff on US imports of steel, aluminum and cars, as well as a baseline 10 percent tariff on almost all countries, with additional “reciprocal” tariffs — making for a combined 20 percent in the EU’s case — lined up if negotiations during a 90-day pause fail.


France condemns Israeli minister’s accusations of inciting hatred

Israeli Foreign Minister Gideon Saar claimed that European governments were inciting hatred against his country. (File/AFP)
Updated 22 May 2025
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France condemns Israeli minister’s accusations of inciting hatred

  • “These are completely outrageous and completely unjustified remarks,” foreign ministry spokesman Christophe Lemoine said

PARIS: France on Thursday dismissed claims by Israeli Foreign Minister Gideon Saar that European governments were inciting hatred against his country.
“These are completely outrageous and completely unjustified remarks,” foreign ministry spokesman Christophe Lemoine said.
“France has condemned, France condemns and France will continue to condemn, always and unequivocally, any act of anti-Semitism.”
In Washington on Wednesday, two Israeli embassy staffers were shot dead outside a Jewish museum by a gunman who shouted “free Palestine” as he was arrested.
US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu led global condemnation of the attack, each of them blaming anti-Semitism.
Israel’s foreign minister said: “There is a direct line connecting anti-Semitic and anti-Israeli incitement to this murder.”
He added: “This incitement is also done by leaders and officials of many countries and international organizations, especially from Europe.”
Tensions have risen in recent days between Israel and European governments over Israel’s military offensive in Gaza and the plight of civilians in the territory.
Speaking in the southern French city of Nice, Foreign Minister Jean-Noel Barrot reiterated that France had condemned the killing as “a horrific attack targeting Israeli diplomats.”
He said he had sent a message to his Israeli counterpart “to tell him how saddened I was by what had happened, how much I was thinking of the families of these diplomats but also of all their colleagues at the Israeli foreign ministry.”
“This blind violence is obviously unjustifiable,” he added.
“We deplore an explosion of anti-Semitic acts that we have seen on our territory in recent years, but we are fighting this explosion with the utmost determination,” he said.
France’s Interior Minister Bruno Retailleau told police earlier Thursday to “step up surveillance at sites linked to the Jewish community.”
On Monday, the leaders of Britain, France and Canada condemned Israel’s “egregious actions” in Gaza and warned of joint action if it did not halt a heightened military offensive on the Palestinian territory.
Last week France’s President Emmanuel Macron accused Netanyahu of “unacceptable” behavior in holding up aid to the Palestinians in Gaza, where Israel is fighting to crush the militant group Hamas.
Netanyahu accused Macron of siding with a “murderous Islamist terrorist organization.”


Suspected Houthi fighter arrested in Germany

A Yemeni man suspected of having fought with the country’s Iran-backed Houthis was arrested in Germany on Thursday. (File/AFP)
Updated 22 May 2025
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Suspected Houthi fighter arrested in Germany

  • The man, partially named as Hussein H., was detained by police in the southern town of Dachau
  • Prosecutors said the man had briefly fought for the militia in clashes in Yemen’s central Marib province in 2023

BERLIN: A Yemeni man suspected of having fought with the country’s Iran-backed Houthis was arrested in Germany on Thursday, prosecutors said.
The man, partially named as Hussein H., was detained by police in the southern town of Dachau, the federal prosecutor’s office said in a statement.
He is suspected of “being a member of a terrorist organization” after allegedly joining the Houthis in October 2022.
Prosecutors said the man, after receiving ideological and military training, had briefly fought for the militia in clashes in Yemen’s central Marib province in early 2023.
The Houthis have imposed strict rule over the large swathe of Yemen under their control, covering two-thirds of the population.
Since the Gaza war broke out after the Hamas attack of October 2023, the Houthis have regularly fired missiles and drones at maritime traffic and at Israel in what they say are acts of solidarity with Palestinians.
The militia warned Monday they would impose a “naval blockade” on the Israeli port of Haifa after the country’s military intensified its offensive in Gaza.


How CPEC expansion can transform Afghanistan’s economy

Updated 22 May 2025
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How CPEC expansion can transform Afghanistan’s economy

  • Chinese, Pakistani and Afghan foreign ministers held a trilateral meeting in Beijing
  • Afghanistan is believed to have vast reserves of lithium and other critical minerals

KABUL: The entry of Beijing’s multi-billion-dollar China-Pakistan Economic Corridor into Afghanistan is expected to boost its ailing economy and regional standing, experts say, following the announcement of expansion plans.

The Chinese, Pakistani and Afghan foreign ministers reached an agreement during a trilateral meeting in Beijing on Wednesday to broaden the flagship part of China’s global infrastructure and investment strategy.

The Chinese Ministry of Foreign Affairs said the expansion of CPEC aimed to “deepen” cooperation under the Belt and Road Initiative — a network of massive road, energy, port and industrial projects launched in 2013 to connect China to the rest of Asia, Europe and Africa.

For Afghanistan, the mega project offers an “important opportunity” to boost its political and economic ties not only with China and Pakistan, but also with the neighboring Central Asian republics, Amin Stanikzai, an economist and lecturer at the Rokhan Institute of Higher Education in Nangarhar, told Arab News.

“It can serve as the intersection of China, Pakistan, Afghanistan, as well as South and Central Asia, therefore, it benefits Afghanistan ... Afghanistan is optimistic about the CPEC project partly because regional connectivity is in Afghanistan’s interest as it is a landlocked country with no access to the sea.”

Since the Taliban took over Afghanistan in 2021, its economy has been reeling under Western sanctions and unemployment has more than doubled.

“If managed well, the project can contribute to the overall stability and development in the region, in addition to improving connectivity and Afghanistan’s access to regional and international markets,” Stanikzai said.

Chinese projects could offer a significant respite to Afghanistan’s economic woes and help develop its potential.

Afghanistan is believed to have vast untapped reserves of lithium, rare earths and other critical minerals, which are key resources in the EV battery and green tech industries.

The potential value of Afghanistan’s lithium and rare earth elements has been estimated by the US Geological Survey and the US Department of Defense to range between $1 trillion and $3 trillion.

It has also some of the world’s largest untapped copper deposits. China Metallurgical Group Corp won a 30-year lease in 2008 to develop the Mes Aynak copper mine in Logar province, but the project stalled due to security issues.

Last year, the Taliban government and China renewed discussions to revive the project.

Talks on Afghanistan’s inclusion in CPEC also started several years ago but practical work has yet to begin, complicated by geopolitical considerations.

Major global powers remain skeptical of China’s BRI. The project has also been consistently opposed by India as it involves construction in Pakistan’s Gilgit-Baltistan region — part of the disputed Kashmiri territory, which New Delhi and Islamabad claim in full but rule in part.

The entry of CPEC projects would, however, help mend Afghanistan’s lately troubled relations with its largest trading partner and route: Pakistan.

“Afghanistan can benefit from these projects politically as well since this is an initiative led by China and it can use its influence over Pakistan in resolving political tension between Afghanistan and Pakistan in the future,” said Abdul Hai Qanit, a political analyst and commentator on Afghan affairs.

“This will have a positive impact on Afghanistan’s economy as a result of becoming a part of the large transportation network that BRI and CPEC will provide. Afghanistan will be able to export its goods without any challenges and delays.”

The scope of projects in the long term could help transform Afghanistan, whose infrastructure and economy have been underdeveloped due to decades of war.

It would also secure its access to international markets and integration into regional economic frameworks.

“Direct linkage to China through Pakistan via CPEC could facilitate the construction of vital transportation corridors, energy projects and digital infrastructure. These are crucial elements for long-term development and post-conflict reconstruction,” Bashir Seddiqi, an international relations expert, told Arab News.

He was not certain, however, how soon the change could be seen.

“Feasibility of implementation remains deeply uncertain,” Seddiqi said. “The CPEC project itself, despite its strategic importance, has experienced delays and setbacks within Pakistan due to governance challenges, financial constraints and shifting political priorities.”