Z Skweyiya on irregular social grants payment investigation

15 October 2007

In April 2005, I tasked the Special Investigating Unit (SIU), also referred
to as the Cobras, to investigate fraud, corruption and maladministration that
plagued the social grant system. Almost three years on, there has been a
dramatic turn around in the social grant system from one riddled with
irregularities and fraud to a system that South Africans can be more proud
of.

This joint investigation by the SIU, the Department of Social Development
and the South African Social Security Agency (Sassa), enables the SIU to employ
a dedicated capacity of nearly 200 investigators to focus on the investigation.
The investigation has primarily focused on public employees however the focus
has broadened to include private beneficiaries.

Since the inception of the investigation, the following results have been
achieved:
* 21 588 government employees were found to be on the system irregularly and
have since been removed. 3 657 have already been referred for disciplinary
action. Disciplinary action ranges from warnings to dismissals.
* 5 656 people have been arrested and taken to court. The conviction rate is
more than 80%.
* To date a total amount of R63 million has been recovered from disentitled
beneficiaries.
* 143 485 people have been recommended for removal from the system and 21 587
civil servant grants have been stopped. A total of 165 072 grants with
annualised value of R424 million and a preventative value of R3,2
billion.
* 123 610 beneficiaries have been cancelled due to non-collection or direct
requests from beneficiaries.
* The investigation has saved the government a total R7,7 billion.

The SIU's investigation, vigorous prosecutions and an increased public
awareness campaign has led to an improved culture of legal compliance.
Irregular and disentitled beneficiaries are being brought to book and are being
held liable for criminal conduct. Since the inception of the investigation over
5 500 cases were taken to court.

Furthermore, the SIU investigation has also detected the disturbing trend of
organised crime syndicates who are targeting the Social Pension system,
(Socpen). These syndicates specifically target disability grants and forge
medical certificates. Together with partner agencies, the SIU has started to
rigorously address the problem and plans to bring these cases to court over the
next few months.

Part of the SIU's mandate, is to review and improve systems as well as to
make systemic recommendations to the department and (Sassa) on closing the gaps
that exist within the system. These recommendations have been implemented by
SASSA in respect of key gaps and include:

* a more in depth evaluation of an applicant before a disability grant is
approved
* the red flagging on the system of those applicants who have been previously
refused grants or who have had their grants cancelled because they were not
entitled to them
* the installation of a biometric system
* the verification of referrals from doctors and reviewing of medical
files
* amendment to application forms to include acknowledgements of means test (to
determine eligibility) and onus to inform the Department of any changes in
financial circumstances
* the visitation of homes to verify existence of children especially in the
case of Foster Care Grants to prevent the registration of 'ghost' children on
the system
* ensuring that all verifying and attesting officers are clearly identifiable
in order to ensure accountability.

Sample audits on Socpen have confirmed a significant reduction in the
potential number of irregular beneficiaries.

The successful collaboration between the SIU, the department and Sassa
combines expertise, capabilities and resources in way that considerably limits
opportunities for fraud, corruption and maladministration within South Africa's
social grant system.

I am also pleased to announce that Sassa is to embark on a national campaign
to enforce compliance at pay points. The agency will be deploying a number of
compliance teams throughout the country, beginning in Mpumalanga during this
month. The campaign will entail inspecting pay points to determine whether or
not they comply with the norms and standards. The operation is intended to
highlight areas of improvement that will assist Sassa to deliver the right
grant, to the right person, at the right time and place and with dignity.

We invite members of the public to contact our customer call centre, at the
toll free number 0800 60 10 11, to report problems at pay points, and to make
suggestions about service delivery improvements.

Together we can defeat fraud and corruption, and ensure that the much-needed
social assistance benefits reach those who are eligible, especially vulnerable
children, older persons and people with disabilities.

Enquiries:
Lakela Kaunda
Social Development
Cell: 082 782 2575

Narushka Moodley
Special Investigating Unit
Cell: 082 456 3889

Issued by: Department of Social Development
15 October 2007