Earlier this week, the ministry confirmed that one of the agency's former employees was wanted by police for long-term misappropriation of public funds totalling 111 million kroner ($17.23 million).
The auditory body has warned over a number of years of potential issues relating to funds administered by Socialstyrelsen, according to investigative media Altinget, which conducted a review of National Audit Office reports dating back to 2002.
Internal checks did not function well enough, security weaknesses were present in IT systems, and requirements for satisfactory and reliable administration were not fulfilled, according to the reports reviewed by Altinget.
Meanwhile, privileged IT access was given to a relatively high number of people who would theoretically be able to misuse the system and cover their tracks.
The national auditor identified issues at the ministry and at Socialstyrelsen in reports between 2006 and 2015, Altinget writes.
Anna Britta Troelsgaard Nielsen, a 64-year-old former employee at Socialstyrelsen is suspected of transferring 111 million kroner of public funds to herself over a 16-year period from 2002 to 2018, the ministry confirmed at a press conference on Tuesday.
The money is reported to have been taken in many cases from state funds designated to support socially underprivileged people. This is provided for by state funding known as satspuljen, derived from regulating the increase in all social welfare payments (overførselsindkomster) in order to keep them slightly lower than natural growth in wages.
Eyvind Vesselbo, a former MP and social welfare spokesperson with the Liberal (Venstre) party, said that the ministry had failed to listen to warnings.
Vesselbo has also previously criticized a lack of transparency in the use of satspuljen money for social projects.
“This is part of what I attempted to bring up with various ministers over the years, because there were always various National Audit Office reports coming through showing what you mention here,” he said to Altinget.
“But it was always refuted with (claims) that it was all under control and that the administrators said there were no problems,” he added.
The ministry responded to criticisms by increasing demands on organizations that received funding from the agency, Vesselbo also said.
Minister for Children and Social Affairs Mai Mercado said that tighter control of satspuljen funds was required.
“This affair shows quite clearly that there is a need for more transparency and good control mechanisms relating to the allocation of (state funds),” she told Altinget.