Charges have been laid against people allegedly trying to defraud the Government's Covid-19 wage subsidy.

The Ministry of Social Development has charged 16 people involving more than $680,000 worth of taxpayer money.

Another five people are likely to be prosecuted.

Canterbury University researcher Michael Gousmett told Mike Hosking the whole scheme was based on a trust model.

He says there should have been more information demanded from businesses to demonstrate they'd had a cash decline of 30 or 40 per cent.

LISTEN ABOVE