/ MEDIA STATEMENT / The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

SASSA is synonymous with fraud, corruption, mismanagement, snaking long queues, pensioners sleeping over to secure their spot in the queue for the following day, and tragically, pensioners dying in queues. Visiting a SASSA office is certainly not a pleasant experience, but one made out of sheer desperation.

Unauthorised deductions. The R390 million rand lost during the CPS scandal. Paying deceased beneficiaries. Paying government employees. System glitches which lead beneficiaries to either receive double payment, or no payment at all. SAPO and Postbank’s inefficiencies. Confusion over gold cards, black cards, and card expiry dates. Dysfunctional online services. The list of SASSA’s failures are endless.

Since inviting the public to share their experiences regarding allegations of fraud within the SRD R370 grant, the DA has received over 150 emails from South Africans nationwide supporting the findings uncovered by two Stellenbosch University students. That there is an active SRD grant in their name, against their ID number, that they did not apply for and despite reporting this to SASSA, they are still locked out of the grant despite being eligible.

If I can share just one of the examples:

“I have three nephews and one niece who had just turn eighteen years old who tried to apply for srd grant, and the system says "application already active" but they didn't applied.

Early January we called SASSA customer care to report this, the agent told us to give him the details of application so that they will send then to head office so that they can be cancelled.

After cancellation they will send us text message so that we can reapply but till today we have not received any text message.”

It is unfortunate that SASSA did not respond on this matter at yesterday’s portfolio committee meeting, citing that their presentation would be inadequate. A strange response when SASSA has admitted fraud within the SRD grant is not new. It is nothing more than a delay tactic by the ANC and SASSA who will now have another 30 days in which to do an internal investigation in order to spin the truth to avoid embarrassing the Minister, themselves, and this government any further, all while eligible recipients remain locked out of the grant; fraudsters continue to steal; and the public and stakeholders still have no answer.

Now, the payment of social grants accounts for approximately 96% of the Department for Social Development’s annual budget. SASSA will receive R266 billion rand for this financial year. One would therefore expect the very best security systems be in place to prevent fraud and corruption, but clearly this is not the case. Is this by coincidence, incompetence, or by design?

Is it by coincidence, incompetence, or by design that SASSA has failed to report allegations of fraud exceeding R100 000 to SAPS as required by Section 34 of the Prevention and Combating of Corrupt Activities Act (Precca Act) as highlighted by the Auditor General (AGSA)?

Is it by coincidence, incompetence or by design that the Chapter 4: The Inspectorate for Social Assistance as envisioned by the Social Assistance Act, and independent body whose primary function is to ensure the integrity of the social assistance framework and systems as well as to investigate fraud, corruption, any forms of financial and service mismanagement, and criminal activity, within SASSA, still has no real capacity?

Instead, SASSA established internal fraud investigation capacity, through their internal Fraud Management and Compliance Unit (FMCU). Herein lies the problem and conflict. SASSA cannot audit itself. This fosters an environment ripe for fraud and corruption.

By SASSA’s own admission “the FMCU [became] structurally unsuited to address the persistent leakage and concerted attacks on the social grants system, sometimes by highly sophisticated crime syndicates targeting the large social grants budget.”

Despite government being aware of the need for a more robust and independent structure to tackle fraud and corruption, the proclamation on Chapter 4: Inspectorate for Social Assistance, was only achieved in 2021. I ask again by coincidence, incompetence, or by design?

Chairperson, as the Democratic Alliance we make the following recommendations to address on-going fraud and corruption at SASSA:

Funding and capacitation of the independent Inspectorate for Social Assistance must be prioritised;

The resignation of the CEO of SASSA. The leadership of this entity must be held accountable;

A SIU investigation into the ongoing fraud and corruption at the entity. DSD cannot investigate its own entity;

A Commission of Inquiry into the SRD R370 grant payment system;

A complete review of the SRD R370 system;

Modernisation and bolstering of the IT security, payment, and biometric verification systems;

We call for real consequence management with penalties and jail time which do in fact act as a deterrent. These criminals whether they are found to be within government or not, belong in jail;

Empowerment of the SASSA beneficiaries by aggressive education and awareness campaigns on how to protect themselves from fraud and channels to report fraud and corruption;

And lastly, we need the political will to root out corruption.

DA Executive Members have demonstrated that there is no department to broken after 30 years of mismanagement and corruption which cannot be fixed. The key difference is whether or not the relevant Minister has the political will to do so. The predecessors of DSD have left much to be desired. Minister Tolashe, are you finally the Minister to prioritise the needs of the vulnerable above the greed of the corrupt?

Issued by Alexandra Abrahams MP - DA Deputy Spokesperson on Social Development