Delaware House Republicans: Reaction to embezzlement report

The Delaware Department of Labor and the Delaware Department of Finance released a report July 30 regarding a large theft from the unemployment insurance trust fund and a separate issue concerning the inability to credibly audit the fund. The following is a statement about the report from the House of Representatives’ Republican Caucus:

State officials quietly issued a report recently regarding what was framed as “financial irregularities” at the Delaware Division of Unemployment Insurance, which included the embezzlement of more than $188,000 by a trusted staffer and an inability to audit the $390 million Delaware unemployment compensation fund.

Those issues had earlier led the Delaware Coalition for Open Government to call on all state lawmakers to launch an investigation of the Delaware Department of Labor and the unemployment compensation fund under its administration.

The House Republican Caucus proposed such an investigation in a resolution we sponsored in June. However, we quickly learned that the Democratic leadership of the House of Representatives would not support its passage.

Instead, the Delaware Department of Labor and Delaware Department of Finance conducted their own internal inquiry, producing the 20-page report that was released July 30. It details numerous factors that led to the state’s profound failings, including antiquated systems, chronic understaffing and the excessive burden the pandemic placed on the unemployment insurance program. It also discussed what steps are being taken to remedy the situation and restore public trust.

While we appreciate the thorough and thoughtful explanations, and have no reason to doubt their veracity, we believe that a full investigation by a third-party entity should have been conducted. The credibility of state agencies being charged to review and report on their own flaws will always be viewed with suspicion — even when the work is performed well.

An independent probe would not only have brought different perspectives to the table and likely resulted in a more diverse analysis, but it would have also provided the public with a higher sense of fidelity regarding the outcome of that work.

Delaware House of Representatives’ Republican Caucus

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