Speech on the ongoing fraud and corruption at the South African Social Security Agency (SASSA)
Speech by ACDP MP, Wayne Thring

Issued by the ACDP Parliamentary Media Office

SASSA’s lack of accountability and transparency allows corruption to flourish

Oct 24, 2024

The ACDP is cognisant of the critical issue of ongoing fraud and corruption within the South African Social Security Agency (SASSA). The salient word here is “ongoing”. It is two years since the former Minister, Zulu, revealed that over half a billion rand was lost in ten years due to the fraudulent activities of some 1174 people.

The SASSA annual report for the 2023/24 financial year revealed that it pays grants to 28 million South Africans. National Treasury’s 2024 Budget Review shows that 7.4 million individuals in South Africa pay income tax. This is nothing to brag about, rather it is a shameful admission of the failure of government to grow our economy and to create meaningful jobs.

SASSA, entrusted with the welfare of our most vulnerable citizens, has failed to safeguard social grants from systemic corruption and mismanagement. This not only undermines public trust but also deprives deserving beneficiaries of essential support. Furthermore, the agency’s inability to implement robust security measures has led to significant data breaches. 

It is evident that SASSA’s internal controls and data hygiene are grossly inadequate. Data breaches expose beneficiaries to identity theft and further exploitation. The lack of accountability and transparency within SASSA exacerbates these issues, allowing corrupt practices to flourish unchecked.

SASSA’s mitigation that it has recouped R150 million in Social Relief of Distress grant payments made to ineligible beneficiaries, though welcomed, is minimal.

The ACDP calls for the scrutinising of SASSA’s operational framework and identifying the root causes of its failures. Additionally, we call on the new Portfolio Committee to follow-up on the clear evidence of mismanagement of funds at best and gross corruption at worst, particularly forbidden payments made to SASSA and PostBank employees.

The ACDP, furthermore, calls for immediate verification processes to be implemented to verify the eligibility of beneficiaries and for the partnering with the State Information Technology Agency to interface financial systems. We must demand that the new government exercise stringent oversight mechanisms and enforce prosecution for those involved in corrupt activities. 

SASSA has failed vulnerable South Africans, only through comprehensive reform can it regain its integrity and ensure that social grants reach those, genuinely in need.

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