Implications of SASSA’s R4-billion underspend for Old-Age grants

The Auditor-General is seeking explanations for SASSA’s R4-billion underspend during the 2022-2023 financial year. As cash-strapped South Africans living below the poverty line struggle to make ends meet, SASSA’s R4-billion underspend on social welfare is simply inexcusable, reports GroundUp.

Specially, the Social Security Agency of South Africa is under severe scrutiny after revelations that it failed to deliver R4 billion in Social Relief of Distress (SRD) grants between 2022/23. Auditor-General senior manager Puleng Molapo presented these findings to the Portfolio Committee on Social Development in Parliament recently.

SASSA’S R4-BILLION UNDERSPEND

Moreover, while billions in aid goes unpaid for SRD, arguably, the money could be better used on existing grants for Older Persons, Childcare or the Disabled and War Veterans. This news follows closely behind the 17-million-SRD-applicants debacle, in which a SASSA spokesperson implied the grant was under siege from ‘fraudsters and chance takers’. Only for the agency to recant its assertion and say 17-million applicants was the total figure for the entire year and not just one month.

Nevertheless, the auditor says the primary reason for SASSA’s R4-billion underspend is ‘low uptake’. Molapo explains this is because of a new means test and verification process implemented by the agency. “Many SASSA SRD beneficiaries were not paid because they were no longer eligible – due to a new income threshold, and bank and identification verification process,” said Molapo.

MULTIPLE IRREGULARITIES

Moreover, in the opinion of the auditor, the agency lacks a robust system to report and track these enquiries, leading to inefficiencies. “SASSA doesn’t have a suitable process to report and track grant enquiries received from the public. The result is they cannot accurately discern between resolved and unresolved cases. This crucial shortcoming has had a detrimental impact on service delivery,” Molapo concluded.

Furthermore, the audit report revealed that over the past five years, SASSA and the Department of Social Development (DSD) was implicated in multiple material irregularities. Specific cases include:

• R74 million paid for services never rendered.
• SRD overpayments through CPS (a company now undergoing liquidation) amounting to R316 million.
• R145 million in SRD grants was applied for by officials working for government.
• More than R1 billion was irregularly spent in the 2021/22 financial year. R560 million was eventually condoned, with R444-million unresolved and still under investigation.

NO ACCOUNTABILITY

Paulnita Marais (EFF) of the Parliamentary Portfolio Committee on Social Development says no one is accountable for what’s happening at SASSA. “Officials can do wrong, then simply resign and nothing happens to them. They get away with it. Our people are suffering,” she said.

Likewise, Bridget Masango (DA) described SASSA’s R4-billion underspend as depressing. “Behind every unachieved SASSA target there are starving old-aged people and stunted children,” exclaimed Masango. There are growing calls for an independent review and greater collaboration with law enforcement agencies to address the issue.