Audit body identifies flaws in Covid compensation payments

The restaurant sector was hard hit by the Covid restrictions. Keystone / Gian Ehrenzeller

The Federal Audit Office has reviewed what the financial aid during the Covid pandemic has brought to the Swiss industry. It is satisfied with how the money was spent.

Self-employed people received more than CHF2.5 billion ($2.5 billion) from the authorities as compensation for loss of earnings from spring 2020 to mid-2021.

The money was used in a targeted and purposeful manner according to Mathias Rickli whose team carried out a comprehensive analysis.

“We see that the payments went where it was recognised that the industry was having difficulties due to the government’s Corona measures.”

Another positive aspect is that everything happened very quickly. Those affected received the first funds only a few weeks after the announcement.

Stricter criteria

However, Rickli criticised that some of the businesses that were forced to close benefited more from the aid than those who were allowed to remain open despite restrictions, but hardly had any more customers.

“Restaurant operators were hit first and foremost. Hairdressing salons were also forced to close. They no longer had a licence to operate. Others, such as taxi drivers or physiotherapists, were able to stay open, but they lost their business completely,” he said.

The businesses indirectly affected by Covid were considered hardship cases and were subject to stricter criteria when claiming Covid loss of earnings compensation.

Parliament has called on the government to prepare a comprehensive report on the social security of self-employed workers, especially in times of crisis.