Govt tightens up on social grants

2012-06-18 13:11

The government has stepped up efforts to stamp out fraud and corruption within its social security system, Social Development Minister Bathabile Dlamini has said.

Briefing journalists in Pretoria, she said the state provided social grants – through the SA Social Security Agency (Sassa) – to over 15 million beneficiaries, with a total budget of R105 billion.

“Sassa has intensified mechanisms to reduce fraud and corruption within the social security system,” she said.

From the beginning of June, the agency started a full re-registration of all social grant beneficiaries “on a comprehensive biometric identification system”.

Social development director general Vusi Madonsela said the number of beneficiaries who might be receiving grants fraudulently was not known.

“We can only estimate, based on international standards... that there is an estimated 10 percent leakage. Whether or not it is 10% in South Africa remains to be seen. Over the years, we’ve estimated we could be losing plus-minus R2bn.”

However, this was still being investigated.

Madonsela said he was confident the actual number “was far less than the 10% international norm”.

On the cost of the re-registration process, he said this was not an additional cost, but was included in the current tender, which would cost the government R10 billion over the next five years.

Earlier this year, Sassa awarded the national contract for grant payments to Cash Paymaster Services.

Madonsela said the contract was saving the government R800 million a year on the cost of administering social grants.

Responding to another question, he was not able to say how many foreigners might be illegally drawing social grants in South Africa.

“During the re-registration process we will identify which people are not South African or not resident in South Africa.”

To date, Sassa had stopped grant payments to 111 people identified as non-South Africans and not eligible for a grant.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.
NEXT ON NEWS24X

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/Sport

Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.