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The Democratic Alliance (DA) has written to President Cyril Ramaphosa requesting an urgent Presidential Proclamation for the Special Investigation Unit (SIU) to investigate fraud at the South African Social Security Agency (SASSA). This given, SASSA has today revealed that allegations of widescale fraud within the Social Relief of Distress (SRD) R370 grant system have been substantiated by an independent investigation. 

The vulnerability assessment, and independent investigation, conducted by an external service provider, Masegare & Associates Incorporated, detailed multiple vulnerabilities and weaknesses in the SRD grant system which substantiate the findings of the two Stellenbosch University Students who presented to the Committee on 23 October 2024.

The findings identified gaps and risks regarding:

•    Multiple applicants per cell phone number;
•    OTP-based authentication;
•    Mobile money and cash send;
•    Biometric verification;
•    Server location and access control. i.e. internal threats and access control at SASSA;
•    Cell phone ownership validation;
•    Data encryption;
•    Call center security; and 
•    The need for regular security audits and penetration testing.

The fundamental design flaw of the SRD system is that it lacks identity verification. The system was not designed to verify that the person using the system is actually the owner of the ID number used. There is “OTP verification” but there is no way of knowing that the cellphone number used belongs to the same person as the ID number. And there is biometric verification which is used only in “cases of suspected fraud” but the report does not explain how the fraud is detected.

While this internal investigation focused on the SRD grant system it does not exclude the likelihood of other vulnerabilities in statutory grants such as: Child Support Grant, Disability, Foster Care and Old Age, Care Dependency grants. 

Since inviting the public to share their experiences regarding allegations of fraud within the SRD R370 grant, the DA has received over 258 emails from South Africans nationwide detailing their experience of being locked out of social grants despite being eligible.

The Democratic Alliance remains steadfast in our commitment to expose weaknesses and fraud within the social grant system, and fight for all South Africans. We urge those affected by issues with the SRD grant to continue to share their experiences by emailing us at fightcorruption@da.org.za. This information will help us gather critical data in identifying patterns of corruption and inefficiencies in order to hold those responsible to account. 

An independent SIU investigation will bring transparency, restore public confidence, and mend the reputation of the social assistance framework which is at the very heart of the social contract bringing dignity to millions of South Africans.

Issued by Alexander Abrahams, DA Deputy Spokesperson on Social Development