SASSA Addresses R140-Million in Social Grants Paid to Deceased Beneficiaries

SASSA Addresses R140-Million in Social Grants Paid to Deceased Beneficiaries. The South African Social Security Agency (SASSA) has come under scrutiny after confirming that it paid R140 million in social grants to approximately 75,000 deceased beneficiaries. The agency has attributed these payments to delays in death registrations and system limitations, leading to concerns over financial oversight and accountability.

Why Were Grants Paid to Deceased Individuals?

During a presentation to Parliament’s Portfolio Committee on Social Development, SASSA’s Chief Financial Officer, Tsakeriwa Chauke, explained that the primary issue lies in the timing of payment processing. Since SASSA prepares payment files at the end of each month for the upcoming month, beneficiaries who pass away in this period may still be included in the payment run.

To combat this issue, SASSA is developing a new payment recall system. This system, scheduled for testing in April, will enable bulk retrieval of payments to deceased beneficiaries based on records from the Department of Home Affairs.

Role of the Department of Home Affairs

SASSA’s Executive Manager for Grant Operations, Brenton van Vrede, clarified that while the agency is synchronized with Home Affairs, it remains dependent on citizens reporting deaths. Although most death cases are captured in the system, a small percentage—0.02% of the total grant budget—falls through the cracks.

Fraud Investigations in Disability and Old-Age Grants

In addition to erroneous payments to deceased beneficiaries, SASSA is also investigating potential fraudulent disability and old-age grant payments. These payments, affecting 486 beneficiaries at the Cradock Local Office between 2018 and 2023, have been suspended, and the Hawks are currently investigating the officials involved. Chauke emphasized that depending on the preliminary findings, disciplinary actions may be taken against implicated SASSA officials. If necessary, a full criminal investigation will be launched.

Significant Reduction in Irregular Expenditure

SASSA has reported a substantial decrease in irregular expenditure over the years. From a peak of R1.8 billion in 2018/19, the figure dropped to R34.2 million in 2023/24 and further reduced to R1.1 million for 2024/25. Chauke credited this progress to enhanced oversight and supply chain management training.

Breakdown of the R1.1-Million Irregular Expenditure for 2024/25

• Western Cape: R1 million spent on unapproved cleaning services.
• Eastern Cape: R77,000 related to an unapproved variation order.
• Northern Cape: R49,000 paid to a doctor with an expired contract.

Material Irregularities Identified by the Auditor-General

The Auditor-General (AG) highlighted five major material irregularities in SASSA’s 2023/24 financial statements:

1. R74 million paid to Cash Paymaster Services (CPS) in 2018 for services not rendered.
2. R316 million overpaid to CPS, with the Pretoria High Court ruling that CPS must repay SASSA.
3. R150 million in R350 SRD grants paid to ineligible applicants.
4. R7.8 million awarded to a company for photocopy machines in the Eastern Cape.
5. R1.7 million in fraudulent social grant payments made by SASSA officials.

Chauke assured Parliament that these irregularities have been addressed, and they will not appear in the 2024/25 audit. The CPS case is currently being handled by the company’s liquidators, while other irregularities are undergoing legal scrutiny.

Challenges in Record-Keeping and Database Synchronization

One of the key concerns raised by the Auditor-General was SASSA’s insufficient record-keeping. The agency currently operates two databases:

• Beneficiary Records Management (BRM) system.
• Social Grant Payment System (SOCPEN).

These two systems are not fully synchronized, leading to discrepancies in beneficiary records. Chauke stated that an internal audit has been conducted to address missing data and that a population analysis is underway to compare the SOCPEN and BRM records.

Additionally, auditors flagged issues with manual registers used at local offices. Some beneficiaries listed in these registers were not reflected in the digital systems, raising concerns about data accuracy. In response, SASSA is working to phase out manual registrations except in instances where digital systems are temporarily unavailable.

Parliament’s Reaction to the SASSA Report

Parliament’s Portfolio Committee on Social Development responded with mixed reactions to SASSA’s presentation.

• Bridget Masango (DA) emphasized the need for stronger internal audits, arguing that proactive internal auditing would minimize findings by the Auditor-General.
• Stanley Ramila (ANC) praised SASSA’s fraud prevention efforts but warned against officials resigning to escape disciplinary action. He suggested that pension payouts be withheld until investigations are concluded.
• Paulnita Marais (EFF) criticized the slow pace of fraud investigations, questioning why cases from 2018 remain unresolved.

SASSA Commitment to Improved Financial Management

Despite ongoing challenges, Chauke reassured Parliament that SASSA is committed to strengthening financial controls and improving audit outcomes. He emphasized that the agency is taking corrective measures to prevent future errors and fraud while ensuring that grants reach their intended beneficiaries.

Conclusion

SASSA’s recent revelations highlight both significant progress in financial oversight and ongoing challenges in grant administration. While fraudulent and erroneous payments remain a concern, the agency is actively implementing new systems, strengthening internal audits, and improving database synchronization to enhance efficiency and accountability. Parliament will continue to monitor these developments closely to ensure that social grants serve their intended purpose—supporting vulnerable South Africans in need.