SASSA Underspending Of R4bn Is A Travesty. The underspending of R4bn by the Social Security Agency of South Africa (SASSA) on the Social Relief of Distress (SRD) grants has sparked widespread concern. Organizations supporting vulnerable individuals have called this financial shortfall a “travesty,” especially as many South Africans continue to rely on these grants for survival. The revelation came from the Auditor-General’s office, highlighting administrative challenges that have prevented eligible beneficiaries from receiving their grants.
The SRD Grant
The SRD grant was introduced in 2020 as an emergency measure during the COVID-19 pandemic. Its goal was to provide financial assistance to those in extreme poverty. Initially set at R350 per month, the grant has been crucial for many unemployed and underprivileged South Africans. However, new application processes introduced in 2022 have complicated the accessibility of the SRD grant for many potential beneficiaries.
The Auditor-General Findings
On Wednesday, the Office of the Auditor-General presented a shocking report to the portfolio committee on social development in parliament, exposing that SASSA underspent by R4bn on SRD grants. The primary reason? A reduced uptake of the grants following the implementation of new application requirements, including a strict bank verification process.
Puleng Molapo, the Auditor-General’s senior audit manager, explained that these new systems were designed to ensure only eligible applicants received the grant. However, it resulted in many deserving individuals being excluded due to the digital-only application process, lower income thresholds, and stringent bank verifications. According to Molapo, “SASSA didn’t pay some beneficiaries because they were no longer eligible under the new criteria.”
Issues with the New Digital-Only Application Process
One of the key barriers to accessing the SRD grant was the shift to a completely digital application system. Many applicants, especially those without smartphones or internet access, found it difficult to navigate the new system. This caused many potential beneficiaries to fail the bank verification process, leading to widespread exclusion from the grant system.
Criticism from Civil Organizations
Several civil society groups, including the Institute for Economic Justice (IEJ) and the #PayTheGrants movement, have voiced their frustrations. According to Kelle Howson, a senior researcher from the IEJ, the underspending is nothing short of a “travesty.”
“There are a number of reasons why the SRD grant system excludes deserving beneficiaries,” Howson said. She explained that the digital barriers, bank verification issues, and lower income thresholds had unjustly kept many from accessing the grant. The IEJ and #PayTheGrants have even launched a court case against SASSA, challenging the new application requirements.
High Decline Rates of Applications and Appeals
Elizebeth Raiters, deputy chair at #PayTheGrants, emphasized the urgent need for intervention from Sisisi Tolashe, the new social development minister. She highlighted that more than 90% of appeals were being declined by the Tribunal, leaving many without the support they desperately need. “SASSA is underspending at the cost of declining the most vulnerable beneficiaries,” said Raiters.
In April 2024, the SRD grant amount was increased to R370 per month, but only individuals earning less than R625 monthly are eligible. Despite this increase, the number of grant recipients has remained low due to the stringent verification process.
Inadequate Reporting and Tracking Systems at SASSA
Another major issue raised in the Auditor-General’s report was SASSA’s failure to implement a robust system for tracking and resolving inquiries. Molapo noted, “SASSA doesn’t have a process to report and track grant inquiries from the public, making it impossible to accurately report on resolved and unresolved cases.” This has further eroded public trust and contributed to the inefficiency of the grant system.
Parliamentary Response
Following the Auditor-General’s report, Bridget Masango, chairperson of the portfolio committee on social development, expressed her dissatisfaction. She described the report as “depressing” and stressed the human toll of SASSA’s financial mismanagement.
Masango stated, “At the back of every unachieved target are starving people and stunted children.” She further called on the department to present clear timelines to ensure that financial and administrative barriers don’t prevent individuals from accessing these life-saving grants.
Material Irregularities Identified Over Five Years
The audit revealed that SASSA and the Department of Social Development have been involved in several material irregularities over the past five years. Molapo reported that SASSA had withheld R145m from alleged overpayments of SRD grants. Disturbingly, some government employees were found to have applied for and received SRD grants, adding another layer to the mismanagement.
Public Outcry and Political Criticism
Members of parliament, like Paulnita Marais from the EFF, were outraged by the findings. She shared that many constituents have struggled to access their R370 payments, and complaints to SASSA have fallen on deaf ears. Marais said, “Our people are suffering. People have been struggling since last year to access their R370. We’ve been complaining to SASSA, but it seems like our complaints go through one ear and out the other.”
Conclusion
The underspending of R4bn on the SRD grants by SASSA is a national tragedy. With so many vulnerable South Africans depending on these grants for survival, the administrative and financial barriers that prevent access must be urgently addressed. Civil organizations, parliament, and affected individuals continue to push for reforms, hoping that the grant system will soon function as intended – providing much-needed relief to the country’s poorest citizens.