Remarks by the Minister of Social Development, Ms Nokuzola Sisisi Tolashe, MP on the occasion of the presentation of the Department of Social Development’s 2024/2025 Annual Report to the Portfolio Committee, Cape Town
Honourable Chairperson and Honourable Members of the Portfolio Committee on Social Development,
Deputy Minister, Mr Ganief Hendricks,
Director-General, Mr Peter Netshipale
SASSA Acting CEO, Mr Brenton Van Vrede,
NDA Acting CEO, Ms Raphaahle Ramokgopa, and
All Senior Managers of the DSD Portfolio here present.
Chairperson, thank for this opportunity to table annual report of the South African Social Security Agency (SASSA) for the 2024/2025 financial year for the Portfolio Committee’s consideration.
The incumbent CEO, Mr Themba Matlou had requested leave of absence long before the announcement of today’s date and in his absence, the Acting CEO, Mr Brenton Van Vrede and his executive will lead the presentation, highlighting key achievements for the year under review.
The annual report that is about to be tabled, the first under the Government of National Unity for the electoral term 2024-2029, is a statement of accountability to the Parliament, and through it to the public. This report provides a high-level summary of SASSA’s performance against its Annual Performance Plan (APP), which is guided by the three strategic priorities of the Medium-Term Development Plan.
I am pleased with SASSA’s performance for the year under review which reflect the huge effort across the agency to improve the way we do things. This is really encouraging for the agency’s future, and I look forward to maintaining the momentum we have built during the year under review.
Hon Chair, SASSA’s work affects nearly every member of the South African public at some point in their lives, from birth when registering for an eligible child’s first grant, to assisting individuals and families when disasters strike, providing income support through disability grants and ensuring a life of dignity in old age. Our services are a lifeline that keeps millions of vulnerable individuals and households our people out of poverty. We do not take this mandate for granted and we are exploring new ways to improve our services by amongst others, using technology to serve more beneficiaries efficiently than ever before.
SASSA ‘s mandate finds expression in the Medium-Term Development Plan (MTDP) under the priority: reduce poverty and tackle the high cost of living. We do this through the social assistance programme, which remains the largest single area of expenditure in the DSD portfolio.
For the year under review, an actual expenditure of R267 billion was incurred, inclusive of expenditure on the COVID-19 Social Relief of Distress (SRD), which was benefitting about 9 million beneficiaries every month. Similarly, the number of active social grants continue to grow gradually, increasing from 19,1 million as at the end of March 2024 to 19,2 million for the year ended 31 March 2025. This represents about 0.6% growth in the 12 months period.
In line with my commitment to this Committee to stabilise the Department and its entities, we have filled the post of Chief Executive Officer within a month after it became vacant. Similarly, we have now filled the positions of three Regional Executive Managers (REMs) for Free State, Limpopo, and Northern Cape and we have just finalised the process for the filling of the vacancies for Gauteng and Western Cape respectively. We will soon table the recommendations to the Cabinet for approval.
Since my deployment to this portfolio, we have listened to the concerns of Honourable Members of this Committee and dedicated time and efforts to improving customer service. Feedback from beneficiaries has highlighted persistent challenges such as delays and long queues at SASSA offices, the need to travel long distances to access services, and system downtimes that result in clients being asked to return the following day.
We are conscious that these frustrations carry financial and emotional costs for beneficiaries, and our response must be timely and considerate. We are acting promptly to address customer service issues.
I have travelled across the country and listened to customers and SASSA frontline employee who understand the operational changes they need to improve customer experience. Through the Integrated Community Outreach Programme (ICROP), we are intensifying our reach to communities across the country. In this regard, I have directed the CEO and his team of Executives, to analyse these issues as raised by communities, prepare responses and provide timely feedback.
Honourable Chair, I am pleased that SASSA continues to receive unqualified reports on their Annual Financial Statements from the Auditor General of South Africa, I however will be more pleased to see them moving towards a clean audit in the next financial years. I have directed the CEO of SASSA to meticulously deal with all the findings of the Auditor General and provide progress reports to my office regularly.
Honourable Chair and Members are aware of issues regarding the Post Bank and SASSA, which are unfortunately playing out in the media. The President of the Republic has since referred this matter to the Inter-Ministerial Committee, and we will inform this Committee of the IMC’s deliberations and decision in due course.
Without pre-empting this process, I must point out that it may be difficult for the IMC to consider or attempt to resolve a dispute that is currently sub judice before the Constitutional Court, considering that it does not have the jurisdiction of a court of law. The IMC may have to defer any deliberations or interventions relating to this matter until the Constitutional Court has delivered its directions. The directions may be to either allow Postbank to have direct access to the Constitutional Court, meaning the Court will adjudicate over the matter filed by Postbank or the Court may dismiss the application. So, it is advised that the directions of the Constitutional Court be awaited.
Honourable Chair, it is worth emphasising that continuing the payment of service fees based on a terminated MSA and in the absence of access channels and repealing of the related provisions, when all the social grants beneficiaries are receiving their grants through regulation 23(1)(b) will expose SASSA to a risk of non-compliance with its own legislation SASSA Act, the PFMA, supply chain prescripts and unfair treatment towards beneficiaries of social grants who are receiving grants through the private banks of their choice. Importantly, the termination of the MSA does not affect the entitlement of the beneficiaries from accessing their grants.
Honourable Chair and Members, as the SASSA annual report will show, we still have significant work ahead of us and I am confident we are on the right track to help us deliver a great service to our people. With your permission Chair, I now hand over to the Acting CEO, Mr Brenton Van Vrede to lead the presentation of the 2024/2025 Annual Report of the South African Social Security Agency.
I thank you for your attention.
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