Call for independent review after Sassa underspends R4-billion on Social Relief of Distress grants

12 Sep 2024

Members of Parliament criticise the agency for finance irregularities that include R74-million paid for services not rendered, Social Relief of Distress grant payments to ineligible applicants, and overpayments amounting to R316-million to Cash Paymaster Services.

The South African Social Security Agency (Sassa) is under scrutiny after revelations that it had underspent by R4-billion on Social Relief of Distress grants during the 2022/23 financial year.

On Wednesday, the auditor-general presented these findings to the Portfolio Committee on Social Development in Parliament.

Auditor-General senior audit manager Puleng Molapo said the primary reason for the underspending was a low uptake of the Social Relief of Distress grant (previously known as the “R350 grant”). This was because of a new means test implemented by Sassa.

“This resulted in Sassa not paying some beneficiaries because they were no longer eligible due to the lower income threshold and bank verification of their income,” Molapo explained.

Molapo also spoke to concerns over Sassa’s service delivery and its handling of grant enquiries. He said the agency lacked a robust system to report and track these enquiries, leading to inefficiencies.

“Sassa doesn’t have a process to report and track grant enquiries received from the public, with the result that it cannot accurately report resolved and unresolved cases,” he said.

Detrimental impact

This shortcoming had had a detrimental impact on service delivery and contributed to public dissatisfaction, he said.

“If I am a beneficiary and have an enquiry about an issue with my grant, someone should tend to it within 10 days,” Molapo said. He also pointed out that “not everyone has access to a Sassa office”.

The audit report revealed that over the past five years, Sassa and the Department of Social Development were implicated in multiple material irregularities. Out of six identified irregularities, five were attributed to Sassa and one to the department.

“Most of the irregularities at Sassa relate to the payment of social grants,” said Molapo.

Specific issues included R74-million paid for services not rendered, Social Relief of Distress grant payments to ineligible applicants, and overpayments amounting to R316-million to Cash Paymaster Services.

Cash Paymaster Services is undergoing liquidation, which Molapo said may affect its ability to reimburse the funds.

Alleged overpayments

Molapo also revealed that Sassa had identified and withheld R145-million from alleged overpayments of Social Relief of Distress grants.

“We found that there were people working for the government who had applied for and received the R350 grants,” he said.

In addition, the audit uncovered that more than R1-billion was irregularly spent in the 2021/22 financial year, with R4-million written off, R561-million condoned, and R444-million unresolved. (Condoned means the irregular expenditure was examined and subsequently authorised as understandable expenditure.)

Molapo explained that a significant portion of this irregular expenditure was being addressed through condonations and clearances in compliance with the Public Finance Management Act Framework.

Portfolio committee unhappy with Sassa

Paulnita Marais (EFF) said: “Every time it comes to taking accountability, they say ‘I’m just acting’. No one is taking accountability for what’s happening in Sassa. You can resign and nothing is going to happen to you. They get away with it.

“Our people are suffering. People are sending me messages that their mother’s R370 is being paid to the wrong person. People have been struggling since last year to access their R370. We’ve been complaining to Sassa, but it seems like our complaints go through one ear and out the other,” she said.

Bridget Masango (DA) described the presentation as “depressing” and emphasised the human impact of financial mismanagement.

“At the back of every key unachieved target are starving people and stunted children,” Masango said.

She questioned how R316-million could be mismanaged despite existing oversight mechanisms, and called for stronger consequence management.

Tshilidzi Munya (ANC) suggested reopening resolved matters for further investigation.

“Clearly there’s corruption in Sassa. There’s no internal control, and even if there are controls, they are being bypassed,” said Munya.

He called for an independent review and greater collaboration with law enforcement agencies and the Special Investigating Unit to address the issues. DM

First published by GroundUp.

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South Africa

Detrimental impact

Alleged overpayments

Portfolio committee unhappy with Sassa