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News/Community Wire/Archive/May 7, 2011
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The subsistence allowance is squandered in entertainment venues

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The subsistence allowance is squandered in entertainment venues. A four-month follow-up investigation by a local TV station shows that some people who receive government low-income security funds may spend their money...

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The subsistence allowance is squandered in entertainment venues. A four-month follow-up investigation by a local TV station showed that some people receiving government low-income security payments may spend their money at tattoo parlors, liquor stores, strip clubs and even casinos. The government is moving to reform the loophole based on the findings. There are 19,000 families in Arizona receiving the federal government's Temporary Assistance for Low-income Families program (TANF, commonly known as Dilima). According to regulations, the subsistence allowance is used for basic living expenses, such as paying rent, food, utility bills, public transportation, basic clothing, diapers, personal care and hygiene products. The government transfers the subsistence allowance to the recipient's ATM card every month. ABC15 TV station started a follow-up investigation in October last year and found that at least 100 minimum living security payment cards were traded at liquor stores. In November 2010, a liquor store in Yuma accepted transactions for more than $1,200 in minimum guarantee gold cards. In December 2010, ATMs at Tempe strip clubs and Zusan's sex shop all had records of subsistence card transactions. More than $5,700 was withdrawn from a casino cash machine in Chandler. There are even people using low-security cards to pay in Las Vegas and Hawaii. Although ATMs have the function of depositing money, transactions at ATMs in entertainment venues are somewhat bizarre. All the above show that taxpayers' money is being squandered by some unscrupulous people. Alberta Social Security says it has no control over this. Carter, director of the subsistence allowance program of the Alberta Department of Social Security, said that when the subsistence allowance is transferred to the recipient's card, there is no regulation on which ATMs are available and which are not, and there is no perfect supervision system. Some members proposed that further strict review of the qualifications of minimum living allowance applicants should be the primary goal.

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