Millions shortfall at Resoga: How administrative errors affect people in Mallorca

Millions shortfall at Resoga: The numbers don't add up

In Palma, a sober round of file reviews caused a stir last week: at least €1.3 million in social pensions apparently appears to have been transferred wrongfully. Inside administrative circles, figures of up to €2.5 million are even being mentioned if the review is expanded to all cases. On the Plaça de Cort, where the voices of the city mix between the town hall façade and street cafés, I heard sentences like: “They've been working with outdated data here for too long.” That sounds less like an isolated mistake and more like a systemic problem.

How could this happen?

The review began in spring: employees compared payment histories, noted irregularities and uncovered recurring patterns. In many cases payments continued even though the recipients no longer live on the islands. In some instances deregistrations from the registration offices were not taken into account, in other files updates or necessary verification notes were missing. Another problem is seasonal migration. People who spend only parts of the year in Mallorca fall through the cracks when reconciliations are missing.

Technically, automated data reconciliation between registration offices, social services and central payment offices is often lacking. Staff shortages and outdated IT systems increase the susceptibility to errors. And because controls over the years were sporadic, small inaccuracies were able to add up to a larger financial leak.

Consequences — for the treasury and for people

The government has already stopped payments in more than 2,000 cases; recovery claims have been initiated in several hundred cases. For those affected this often means immediate worry: at the weekly market in Sineu I met a pensioner who clutched her shopping bags tighter and said, “If they suddenly want money back — how am I supposed to pay that?” Such concerns are not abstract. Electricity, rent, the next packet of medicine — these are realistic expenses at stake.

Public funds are not just numbers on a bank statement; they are everyday life. When administrative errors hit pensioners, single parents or those in marginal employment, more than a budget item is at stake: trust in state support is damaged.

What is missing from the discussion

The public debate often focuses on sums and assigning blame. Structural questions receive less attention: How are registration offices and social services technically and staff-wise networked? What distinction exists between seasonal residents and long-term inhabitants? And how do authorities deal with language and digital barriers — especially for older people who may not understand letters or may not react in time?

Another often overlooked point: the practice of recovering overpayments can vary greatly. In individual cases a claim is appropriate. But if it is standardized, without hardship assessments or installment agreements, the procedure hits hardest those who are least able to repay.

Concrete: What should happen now

The investigation has already revealed deficiencies. From this, concrete steps can be derived that both mitigate harm in the short term and help restore trust in the long term:

1) Moratorium on aggressive recovery actions: Until all cases have been individually reviewed, lenient transitional arrangements would be sensible — especially for pensioners.

2) Hardship fund and installment plans: A small budget for social protection in problematic individual cases prevents existential emergencies.

3) Automated data reconciliations: Technically linked interfaces between registration offices, social services and payment centers would reduce errors.

4) Transparent communication: Proactive information by letter, phone and local press helps avoid panic. Local contact points — like the town hall on the Plaça de Cort — should make it clear: we are here to help.

5) External audits and annual sample checks: Independent reviews prevent processes from going uncontrolled for years.

Looking ahead

Administrative mistakes cost money — and they cost trust. The Balearic government faces the task of repairing procedures, treating those affected with humanity and improving structures so that a single misclick does not ruin everyday life. On the streets of Palma or chatting at the market in Sineu you now hear less about figures and more about the people behind them: they want security, clear answers and, where necessary, understanding. Those answers must come politically and administratively — and quickly.