Z Skweyiya announces progress in social grants anti-fraud
campaign

20 July 2006

Significant progress is being made in the campaign to eradicate corruption
in the social grants system, with 55% of the annual target for prosecutions
having been met as of June 2006, the Minister of Social Development, Dr Zola
Skweyiya, announced today.

The Department had set a target of prosecuting 1 200 public servants for
defrauding the social grants system during the 2006/07 financial year. As of
June 2006 the following progress had been made:

* 662 accused have been brought to court since the beginning of the
financial year, which amounts to 55.2% of the annual target of 1 200
* 231 accused were brought before court in the month of June. The target was
220, which is an achievement of 105%
* 334 matters have been finalised in court since the beginning of the financial
year
* 753 acknowledgement of debts have been signed since the beginning of the
financial year, with these being valued at R1 475 190.

Dr Skweyiya said, “We are pleased with the progress being made by the
Special Investigating Unit and the prosecuting authorities. The prosecutions
are sending a message to all public servants and members of the public who are
contemplating fraud that they will be dealt with swiftly and seriously.”

The South African Police Service (SAPS) Commercial Crimes Unit is also a key
partner in the investigation of the criminal cases nationally. The Minister
announced in April that 35 000 cases of fraud by members of the public were
being investigated. These had been reported on the Department’s anti-fraud
hotline, and are still being investigated by the Special Investigating Unit
(SIU).

Dr Skweyiya stated, “Through all these efforts aimed at improving the
integrity of the grant payment system, government has managed to save about
R1,2 billion in the past financial year. We will not rest until the right
people get the right grant, in an appropriate manner that respects their
dignity.”

Minister Skweyiya emphasised that the decision to prosecute rests with the
prosecutors, under delegation from the National Prosecuting Authority. “In this
regard guidelines have been developed to assess the prosecutability of cases.
Most of the convictions to date have been obtained through guilty pleas or as a
result of plea bargaining between the prosecution and the accused. Plea
bargaining arrangements are entered into, taking into account the nature and
gravity of the offence, value of the benefit, personal circumstances of the
accused and the likely sentence that the court may impose.”

Cases are systematically recommended by the SIU for disciplinary action.
Each employer department will have the discretion to institute disciplinary
action based on the recommendation by the SIU. Certain government departments
have already commenced with disciplinary action.

Background

Over the past few years, there has been an enormous increase in the number
of beneficiaries as government introduced a child support grant, and disability
grants became more widely accessible. Losses have conservatively been estimated
at approximately R1, 5 billion per annum or 2.6 percent of the allocated budget
of R56 billion.

As a result, Minister Skweyiya approached the SIU, through proclamation R18,
in 2004 to investigate and redress any impropriety, including fraud, corruption
and maladministration in relation to the administration of the social grant
system.
Proclamation R18 of 2005, published on 6 April 2005, mandated the SIU to
investigate:

* The payment and/or receipt of social grants or benefits by unqualified
beneficiaries.
* The irregular or unlawful conduct of governmental officials and/or agents
responsible for the administration and/or payment of social grants or
benefits.

The project commenced on 1 March 2005 and will continue for an initial
period of three years. The SIU works closely with the newly established South
African Social Security Agency (SASSA). The SIU has, in addition, a dedicated
capacity comprising of forensic investigators, lawyers, forensic accountants
and forensic data analysts. This capacity will grow to 200 members by the end
of 2007.

For More Information Contact:
Lakela Kaunda
Tel: (012) 312 7653
Cell: 082 782 2575
E-mail: Lakela.Kaunda@socdev.gov.za

Issued by: Department of Social Development
20 July 2006