tabled
28 September 2007
The Minister of Social Development, Dr Zola Skweyiya has tabled the annual
report of the SA Social Security Agency (SASSA) in Parliament today, 28
September 2007.
The annual Report records substantial progress that has been made by the Agency
over the past financial year.
The establishment of SASSA means that social grants can now be delivered in a
uniform and standardised manner to ensure efficiency and effectiveness. It is
SASSA's objective, through effective administrative systems and payment
processes, to restore the dignity of beneficiaries and to ensure equal access
to social security for all citizens.
There has been progress in the past year on many fronts, including: the
integration of the social assistance administration and payment services into
national Government and SASSA; an increase in the uptake of social assistance
grants by the poor and the vulnerable, especially children found in
destitution; moves towards extending the social security safety net; redefining
disability in order to improve access to Government services and in particular
adult disability grants and care dependency grants for children.
In the year under review, the South African Social Security Agency (SASSA)
defined its guiding framework in its first Strategic Plan, 2006/07 - 2008/09.
SASSA dramatically expanded its activities, taking on new projects and new
staff to implement its mandate.
Highlights
Nine regional offices have been established with Regional Executive Managers
either in an acting or permanent capacity. Approximately 80 percent of staff
time was spent on the establishment, operationalisation and integration of the
social assistance administration and payment services.
Six thousand (6 000) grants administration staff from the nine Provincial
Governments were transferred to SASSA.
Transversal systems including the Social Security Pension System (SOCPEN),
Basic Accounting System (BAS), Logistical information System (LOGIS), Personnel
and Home Based Electronic Document.
In compliance with legislative requirements, financial and human resource
policies and procedures were finalised and implemented.
The number of beneficiaries accessing social grants in the year under review
increased by 10.1 percent.
An Improved Grants Administration Process (IGAP) was developed and piloted
in selected sites. The model focused on faster turnaround times for grant
applications. The aim was to let the applicant know the status of his/her
application within a day.
SASSA has developed and implemented fraud detection and prevention plans.
This has resulted in over 2000 people being prosecuted for grant fraud. SASSA
is collaborating with the Department of Public Service and Administration
(DPSA) and Office of the Premiers in the nine provinces to ensure that
appropriate action is taken in such cases. The process of recovering fraudulent
grants is underway. Fraudsters are being mercilessly and vigorously
prosecuted.
SASSA piloted a Management Information System (MIS) in four regions. This
allows SASSA to access information in real time. Implementation of
the system in all regions will be rolled out in the new financial
year.
Audit Challenges
SASSA's improved administration systems have led to the uncovering, by SASSA of
a fraudulent transaction amounting to R 2 634 330, 00 within the organisation's
Supply Chain Management system. The fraud discovery was reported by SASSA to
the Office of the Auditor-General and to the relevant law enforcement agencies
which are currently investigating.
"We have faith in our law enforcement agencies; they will unmask and bring to
book the officials who have committed the fraud. We will not compromise on
ensuring a clean administration, free of fraud and corruption," said Dr
Skweyiya.
Minister Skweyiya also raised concern about the fact that the Agency received a
qualified audit report from the Auditor-General (AG). SASSA's transitional
period, during which the corporate services function was decentralised, has
resulted in an inability to collate essential audit documents required for
auditing purposes, from the various provincial administrations.
SASSA is embarking on a robust exercise to enhance financial and operational
efficiency. The following represents a few initiatives undertaken to enhance
financial and operational management within SASSA.
1) A finance improvement plan has been developed and is being implemented to
deal with all weaknesses identified by the AG in the report. Progress on
improvements will be checked by the Internal Audit Unit on a monthly basis
through regional audit steering committee meetings.
2) A number of measures are being implemented to strengthen the internal
control system within SASSA. These are:
a. An audit of all batches is being conducted to ensure proper record keeping
of all accounting records.
b. A pre-audit function has been established to pre-audit all transactions
before orders are placed or payment is effected.
c. A review of all policies is being undertaken to strengthen controls.
d. The delegations of authority have been amended and will be approved by end
of October 2007.
e. The Bid Committee of SASSA has been reconstituted to promote the
independence of the Bid process.
Minister Skweyiya thanked all the provincial departments of Social Development
for the work done to ensure the smooth transfer of functions and personnel to
SASSA. "Any challenges that remain â be they financial or service delivery
related - will be overcome as we are working together as a cohesive team with
the provincial departments, to build a strong and effective SASSA."
Enquiries:
Lakela Kaunda
Cell: 082 782 2575
Issued by: Ministry of Social Development
28 September 2007
