The SA Social Security Agency (Sassa), which distributes social grants on behalf of the government, suffered a potential loss of R50.5m in the past two years due to fraud.
This information was provided by social development minister Lindiwe Zulu in a written reply to a parliamentary question posed by EFF MP Laetitia Arries.
Zulu noted the figure represented a cumulative potential loss documented for the period and involved various other parties not limited to Sassa officials.
Forty Sassa officials were implicated in the suspected fraud cases, which totalled 701.
“These cases ranged from fraudulent collection of grant funds intended for deceased individuals, the submission of disability grant applications with falsified medical information, and the illicit collection of child support grants,” she said.
Of the total suspected cases of fraud detected for the period, 698 were finalised while three are still under investigation.
Thirty-seven cases were referred to law enforcement agencies for criminal investigation and prosecution.
“The notable surge in detection of fraudulent cases can be attributed to Sassa’s anti-corruption strategy,” Zulu said.
Disciplinary measures including dismissal, demotion, written warnings and suspension without pay were imposed on officials.
“Disciplinary actions were instituted against [a number of] officials. Sanctions vary from written warnings to dismissal.
“A total number of 62 cases have been finalised and 22 are in progress.”
There were 19 cases in the Eastern Cape, three in the Free State; three in Gauteng; 15 in KwaZulu-Natal; 10 in Limpopo; 17 in Mpumalanga; five in the North West; two in the Northern Cape and 10 in the Western Cape.
“It should also be noted that some fraud cases are being investigated or handled by external or third parties like [the] SIU [Special Investigating Unit], public protector, National Treasury and SA Police Service.”
According to the Sassa annual report for 2022/23, which has been tabled in parliament, R233bn was paid out in social grants during the year, with the number of grant beneficiaries standing at 18.8-million at the end of March.
The organisation had 7,481 funded permanent posts.
The report by the auditor-general, which is included in the annual report, did not highlight significant internal control deficiencies within Sassa as far as fraud and corruption were concerned.
The fraud at Sassa disclosed by the minister is symptomatic of widespread corruption in the government. This has been a particular problem at the department of home affairs, where visas and passports are supplied fraudulently.
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