It's guaranteed that ANY government program that simply pays invoices for products or services will be subject to fraud from day one. It's naive to create any such system without the necessary rigorous checks and balances to properly vet all payment requests.
It's guaranteed that ANY government program PERIOD will eventually be subject to fraud. Either from the end recipients or the people running the government themselves. As the government grows the chances for this only get worse, from both directions.
It's amazing to me that the same people that condemn capitalism because of 'human' greed can't recognize this same 'human' greed could possibly exist in politicians as well.
The article says that the fraud was so systematic and widespread that the state of Minnesota had to shut the entire program down. That's how bad it was.