Minister Bas Aims to Disrupt Organized Fraud in Social Housing

Thu 7th Aug, 2025

In a recent visit to Gelsenkirchen, Federal Minister for Labor Bärbel Bas addressed the pressing issues of organized fraud and the exploitation of substandard housing conditions affecting vulnerable populations. This initiative is part of a broader effort to tackle what she described as 'mafiöse Strukturen' or mafia-like structures that have become entrenched in certain communities.

The backdrop of her visit was a dilapidated residential complex, emblematic of the social issues plaguing the region. Gelsenkirchen, once home to a thriving population of 400,000, has seen a dramatic decline to just 270,000 residents following the closure of local coal mines. Many properties that once housed working families now lie vacant and are being exploited by criminal organizations.

These organizations purchase rundown buildings and lure individuals, primarily from Southeast Europe, to Germany under false pretenses. They often house these migrants in squalid conditions while siphoning off their social benefits, including citizen income assistance. Minister Bas highlighted the severity of the situation, noting that individuals are often crammed into small, unsanitary living spaces.

To combat this, the federal government plans to implement significant legal reforms aimed at dismantling these fraudulent networks. One of the first measures involves the repurchase and demolition of these substandard properties, thereby removing the operational base of the criminals involved. Local political leaders, including SPD mayoral candidate Andrea Henze, view these actions as a necessary step towards revitalizing the area.

This initiative comes at a critical time, as local elections loom and support for the far-right AfD party has surged in historically left-leaning districts like Gelsenkirchen. Many residents express frustration over the slow pace of structural change and the ongoing issues associated with these abandoned properties.

In addition to property management reforms, Minister Bas is also considering adjustments to labor mobility regulations. She believes that current laws may inadvertently contribute to the exploitation of workers, particularly when individuals come to Germany under precarious employment contracts. Bas is advocating for a review of these regulations to ensure that they better serve both the workforce and the economy.

Moreover, the government is developing new strategies to combat illegal employment practices. For instance, a forthcoming law will mandate that customs authorities report any irregularities in residency statuses directly to job centers, enhancing inter-agency cooperation to tackle these issues more effectively.

Minister Bas emphasized that addressing these challenges requires a multifaceted approach, involving collaboration across various governmental departments. The aim is to create a sustainable solution that not only addresses immediate concerns of fraud and exploitation but also fosters long-term structural improvements in the region.


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