Despite warnings, California’s unemployment agency did nothing for four months to stop paying bogus jobless claims, according to an audit released Thursday that blamed Gov. Gavin Newsom’s administration for “significant missteps and inaction” costing taxpayers $10.4 billion and counting.
The report from California State Auditor Elaine Howle found the agency was flagging as many as 1,000 suspicious claims per day in the first four months of the coronavirus pandemic, yet it only had two people responsible for reviewing those reports and stopping the payments.
It wasn’t until July that the agency automated this process. But even then, it did not act to stop fraudulent payments.