Sweden scraps payment system after nearly SEK 200 million spent, drawing criticism over taxpayers’ money

The Riksdag has voted to discontinue the Payment Authority’s transaction account system.

Behind the bureaucratic term was the previous government’s plan to collect all payments from welfare agencies and the Swedish Tax Agency in one place. Around SEK 800 billion is paid out each year in benefits such as parental benefits, pensions and sickness benefits.

The government, led by Finance Minister Elisabeth Svantesson (M), is now scrapping the project before the system has even been put into operation. The cost of building and dismantling it is estimated at nearly SEK 200 million.

One reason for scrapping the system is concern about the security and privacy risks of collecting such large payments in one place.

S, V and MP say the government is responsible for an “enormous waste of taxpayers’ money” by submitting an ill-considered proposal and then failing to heed the authorities’ criticism in time.

C is calling for an audit of the costs and what went wrong, but the Finance Committee points out that the National Audit Office is already conducting an audit.

The Payment Authority will now focus on its core task: preventing and detecting incorrect payments.