SASSA Is Under Fire For R4 Billion Relief Grant Underspend. The South African Social Security Agency (SASSA) has come under intense scrutiny for underspending a massive R4 billion, which was allocated for the Social Relief of Distress (SRD) grants in the 2022/23 financial year. This revelation was brought to light during a meeting in Parliament, where the Auditor-General presented their findings to the portfolio committee on Social Development.
Audit Reveals Underspending and Systemic Issues
On Wednesday, Puleng Molapo, the Auditor-General’s senior audit manager, explained that the main reason for this significant underspend was the low uptake of the SRD grant, also known as the “R350 grant.” This decrease in the number of beneficiaries was largely caused by a new means test implemented by SASSA. The new criteria required a lower income threshold and bank verification of beneficiaries’ income, which resulted in many no longer qualifying for the grant.
Low Uptake Due to Means Test Changes
The stricter means test led to fewer beneficiaries receiving the SRD grant, contributing to the R4 billion underspend. While this was done in an effort to target the most deserving individuals, the means test inadvertently excluded many. The Auditor-General pointed out that this lower-than-expected uptake was the major cause of the underspending.
Lack of Tracking System for Grant Inquiries
In addition to the underspend, the audit also revealed SASSA’s failure to implement a system for reporting and tracking public inquiries related to grants. This lack of a tracking process means that SASSA cannot accurately report how many grant-related issues have been resolved or remain outstanding, which is a significant operational shortfall.
Historical Irregularities at SASSA
Over the past five years, both SASSA and the Department of Social Development (DSD) have been involved in multiple material irregularities, with five of the six identified issues directly attributed to SASSA. These irregularities are primarily linked to the payment of social grants, underscoring the agency’s ongoing challenges in managing the distribution of funds.
The report detailed that between the 2021/22 and 2022/23 financial years, SASSA faced problems such as SRD grant payments made to ineligible applicants and overpayments to service providers. One of the most notable issues involved R316 million overpaid to Cash Paymaster Services (CPS).
Challenges Faced by Applicants
Advocacy group Black Sash highlighted ongoing challenges with SASSA’s online application system, noting that Child Support Grant (CSG) applicants face difficulties applying online. Many lack access to smartphones or data, or struggle with network challenges, while those who do manage to access the platform often have trouble uploading the required documents.
Audit Findings: Mismanagement of Funds
Further audit findings revealed that in the 2021/22 financial year, over R1 billion was irregularly spent, with R4 million written off, R561 million condoned (approved after being reviewed), and R444 million unresolved. These irregular expenditures continue to raise concerns about SASSA’s ability to effectively manage its finances.
Molapo assured the portfolio committee that a large portion of this irregular expenditure is being addressed through condonations and clearances, in line with the Public Finance Management Act (PFMA) Framework. However, the systemic issues within SASSA remain a cause for concern, particularly with the ongoing mismanagement of funds.
Conclusion
SASSA’s R4 billion underspend in the SRD grant fund highlights significant flaws in the agency’s operations and management systems. With ongoing concerns about irregular expenditures, failure to address grant inquiries, and challenges faced by applicants, SASSA is under growing pressure to rectify these issues. The government and civil society must work together to ensure that social grants reach those in need, while improving the transparency and accountability of the agency’s processes.