SASSA Clarifies R140 Million in Grant Payments Issued to 75,000 Deceased Persons -

The South African Social Security Agency (Sassa) has explained that the disbursement of R140 million in social grants to about 75,000 deceased beneficiaries was due to delays in death registrations and limitations within their systems.

On Wednesday, Sassa presented its audit action plan to parliament’s portfolio committee on social development, following a clean financial audit from the Auditor-General for 2023/24.

Sassa’s chief financial officer, Tsakeriwa Chauke, clarified that the issue stems from the timing of payment processing. At the end of each month, Sassa generates payment files for the next month, but some beneficiaries may pass away between the generation of the payment file and the actual payment, leading to their inclusion in the payment run.

Chauke also mentioned that the agency is working on a new system, set for testing in April, which will allow for bulk recalls of payments made to beneficiaries confirmed deceased by the Department of Home Affairs.

Read: Sassa’s plans to reduce long queues and improve the grant payment process

Brenton van Vrede, executive manager for grant operations at Sassa, remarked, “While we coordinate fully with Home Affairs, we still depend on citizens to report deaths.”

He acknowledged that although most deaths are recorded, a small fraction, about 0.02% of the total grant budget, may slip through the cracks.

Sassa is also probing potentially fraudulent disability and old-age grant payments issued to 486 beneficiaries at the Cradock Local Office from 2018 to 2023. Chauke confirmed that these payments have been halted and that the Hawks are currently investigating the officials involved.

“Based on the initial review, we will assess whether disciplinary actions are required for any implicated Sassa officials, along with a thorough criminal investigation,” Chauke stated.

Reduction in irregular expenditure

The agency’s irregular expenditure peaked at R1.8 billion in 2018/19. As of 2023/24, it has decreased to R34.2 million and further to R1.1 million for 2024/25. Chauke attributed this decline to better oversight and enhanced training in supply chain management.

The R1.1 million in irregular expenditure for 2024/25 comprised:

R1 million in the Western Cape for unauthorized cleaning services;
R77,000 in the Eastern Cape due to an “unapproved variation order”; and
R49,000 in the Northern Cape paid to a doctor with an expired contract.

The Auditor-General also noted five instances of material irregularities in the 2023/24 financial statements:

R74 million paid to the disputed Cash Paymaster Services (CPS) in 2018 for services not rendered;
R316 million overpaid to CPS, which a High Court in Pretoria ruled should be repaid to Sassa;
R150 million in R350 SRD grants given to ineligible recipients;
R7.8 million awarded to a company for photocopy machines in the Eastern Cape; and
R1.7 million in fraudulent social grant payments made by Sassa personnel.

Chauke indicated that the material irregularities from 2023/24 have been resolved and will not be reflected in the forthcoming 2024/25 audit. The CPS issue is currently with the company’s liquidators, while the other irregularities are under legal examination and investigation.

Read: Sassa recovers R150m in ineligible grant payments [Oct 2024]

“The Auditor-General assessed all the measures we’ve taken and was satisfied with how management addressed these issues,” Chauke noted.

Inadequate record-keeping

The Auditor-General found that not all grant recipients were included in Sassa’s Beneficiary Records Management (BRM) system. Sassa operates two databases – BRM and the Social Grant Payment System (Socpen) – which are not completely synchronized.

Chauke pointed out that internal audits at Sassa revealed discrepancies and missing information in certain cases. He stated that they will perform a population analysis to reconcile records in Socpen with those in BRM. “Any discrepancies we identify will be addressed,” he assured.

Read:
Widespread fraud in Sassa’s grant system [Oct 2024]
Investigation into social grant fraud ends in failure [Nov 2024]

The Auditor-General also identified issues with manual registers used in local offices. Chauke explained that when individuals visit a Sassa office, their details are logged in a manual register. Auditors found that some beneficiaries recorded in these logs were absent from the agency’s internal control and assurance system.

This raised concerns about the completeness of inquiry records and whether all cases were accurately documented in Sassa’s digital systems. Chauke stated that Sassa is actively addressing these gaps and is gradually moving away from manual registrations, except in situations where systems are inoperative.

MPs respond

Committee chair Bridget Masango (DA) questioned if Sassa was adequately prioritizing internal audits, suggesting that enhancing internal audits and acting on their findings could reduce the number of issues flagged by the Auditor-General.

Stanley Ramila (ANC) recognized efforts to combat fraud but warned against officials resigning to evade disciplinary measures. “When this happens, it indicates these officials believe they are guilty,” he commented, suggesting that pension payouts be withheld until cases are resolved.

Read: SRD grants: Investigating the system’s vulnerability to fraud [Dec 2024]

Paulnita Marais (EFF) criticized the slow pace of fraud investigations, noting, “Some of these cases date back to 2018 and are still unresolved.”

Chauke reassured parliament that progress is being made. Despite ongoing challenges, he emphasized that Sassa is committed to strengthening financial controls and improving audit results.

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