Massive service cheques fraud

Last year, 323 of the 2,711 service cheques companies operating in Belgium had their licences revoked because of foul play, report Het Belang Van Limburg and De Gazet Van Antwerpen. "Labour inspectors perform their checks much more selectively than in previous years," said minister for employment Monica De Coninck. The infringements, however, were not all of equal gravity. "But for 90 companies, the licence was withdrawn because of clear fraud or outstanding social security debts," says Ms. De Coninck. "We noticed that a number of these companies entered voluntary bankruptcy before they could pay off their debts.  Last year, inspectors had to reclaim €7 million; in 2011, the figure stood at €4 million. Entrepreneurs wishing to set up a service cheque company must now pay a deposit of €25,000. The money can then be used to cover any unpaid debts or voluntary bankruptcies.