US firm lobbied Dept of Social Protection weeks before issuing of employment services tender
Just over two weeks after an information seminar on November 9, a representative of Maximus emailed a principal officer in the Department of Social Protection saying that they had "taken the liberty to email directly" because the company was "keen" to become involved in the €168m schemes. File photo
A US firm that has faced criticism for its handling of social welfare schemes in America met with the Department of Social Protection weeks before a tender for local area employment services was announced.
Documents released to the under Freedom of Information legislation show that a representative of Maximus expressed the company's interest in becoming involved in the State schemes aimed at getting job seekers back to work in early November and was subsequently invited to an information seminar on November 9.
Just over two weeks later, a representative of the company emailed a principal officer in the department saying that they had "taken the liberty to email directly" because the company was "keen" to become involved in the €168m schemes, which went to tender on December 21.
A meeting between the two was then arranged for December 9, but no records were released in relation to the content of the meetings.
Maximus, which currently has operations in Italy, Sweden, and the UK - where it delivers employment support services on behalf of the UK and Scottish Governments - has been criticised in the US for its practices. In the US, the company is contracted to administer a range of government schemes including Medicare and Medicaid, as well as work with the US military.
A report last month from the Communications Workers of America (CWA) and the Student Borrower Protection Center (SBPC) accused the company of sloppy handling of student loans and unfair debt collection practices, claims the company has strongly denied in US media.
A previous report by the CWA alleged performance failures on a Kansas Medicaid contract "resulted in harms to Kansans and health providers, particularly elders and senior living homes" and that Maximus had "acknowledged causing the District of Columbia to submit undocumented Medicaid claims for foster care services, leading to a major Medicaid fraud settlement with the Department of Justice".
A Maximus spokesperson confirmed that the company is exploring an Irish expansion.
“As a global leader in employment services we are always open to exploring new markets," they said but declined to comment on criticism of the company's operating procedures.
In late December, the department issued the tender for the local area schemes, which are divided into 17 geographical areas.
It says that companies are asked to provide "employment assistance and advice services...to clients referred by the department, primarily those who are long-term unemployed clients farthest from the labour market with barriers to labour market participation and that warrant the provision of intensive employment support services, and are in receipt of a social welfare payment, and others that although not long-term unemployed are considered by the department to warrant the provision of intensive employment support services".
The Department of Social Protection did not respond to a request for comment about the meeting, but Minister Heather Humphreys earlier this month told People Before Profit TD Bríd Smith that it had taken place.
"Officials from my Department have engaged extensively with interested parties in advance of the current procurement process for employment support services," she said.
"At the request of organisations who sought to introduce themselves to the Department, my officials had introductory meetings with Maximus on 9th Dec 2021, Capita on 24th Sept 2021 and FedCap on 11th May 2021."
