Sassa lost R50m loss to fraud in two years

Forty officials caught with hand in the cookie jar

Social development minister Lindiwe Zulu. File photo.
Social development minister Lindiwe Zulu. File photo.
Image: Sharon Seretlo

The SA Social Security Agency (Sassa), which distributes a variety of 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 suspected cases of fraud, which totalled 701. “These cases ranged from fraudulent collection of grants... the submission of disability grant applications with falsified medical information, and the illicit collection of child support grants,” the minister said.

Of the total suspected cases of fraud detected for the period, 698 were finalised while three were still under investigation. A total of 37 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. There were 19 cases of fraud in Eastern Cape, three in Free State; three in Gauteng; 15 in KwaZulu-Natal; 10 in Limpopo,  17 in Mpumalanga; five in North West; two in Northern Cape and 10 in Wes tern Cape.

“Disciplinary actions were instituted against officials. Sanctions vary from written warning to dismissal. A total number of 62 cases have been finalised and 22 are in progress. 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 SAPS.”

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 as at the end of March.

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 is symptomatic of widespread fraud and corruption.

This has been a particular problem at the department of home affairs, where visas and passports are supplied fraudulently.


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